Paul Kehoe
Ceist:436. Deputy Paul Kehoe asked the Minister for Business, Enterprise and Innovation the grant funding available for start-up online e-commerce business; and if she will make a statement on the matter. [8624/20]
Amharc ar fhreagraWednesday, 3 June 2020
Ceisteanna (436)
Freagraí scríofa
Existing businesses with six months trading and wishing to establish themselves as an online entity, can avail of the Trading Online Voucher Scheme (TOVs). Administered by the Local Enterprise Offices on behalf of the Department of Communication, Climate Action and the Environment, the TOVs is an initiative under the Government’s National Digital Strategy, which helps small businesses trade more online, to boost their sales and reach new markets.
The Minister for Communications, Climate Action and the Environment, Richard Bruton, and I recently agreed to expand the scope of the TOVs scheme to offer financial assistance of up to €2,500 with reduced co-funding of 10% from the business, along with training and advice, to all micro companies with a turnover of less than €2M who want to establish an online presence for the first time, or who wish to expand a basic existing website to incorporate a more substantive online trading capacity.
Furthermore, businesses that have previously received and implemented a Trading Online Voucher can now apply for a second voucher, where upgrades are required. Funding can be used towards adding payment facilities or booking systems to your website or developing new apps for your customers. The voucher can now also be used towards subscriptions to low cost online retail platform solutions, to help companies quickly establish a retailing presence online.
In addition to the above, it should be noted that while retail services are not eligible for LEO Measure 1 (Feasibility, Priming and Business Expansion grants) support, Start-up businesses (less than 18 months old) may be eligible for Feasibility and Priming Grant support. If there is an innovative business model associated with an online e-commerce business, it will be considered for Measure 1 support by a LEO. Considerations include:
- Any potential it could cause for displacement in the local economy.
- A plan to deliver export sales.
- Its innovative potential in terms of offering the market a substantially improved service.
- The business providing new employment in the state.
For larger enterprises, with over 10 employees, Enterprise Ireland can offer The Covid-19 Online Retail Scheme, The objective of this scheme is to support companies in the indigenous retail sector which have started an online journey, which will have the most immediate impact enabling them to respond to both the domestic and international consumer demand with a competitive online offer.
My Department proposed this Scheme in response to the COVID-19 crisis and the urgent need for retail companies to achieve a step change in online capability. Applicant companies must employ 10 or more people, have an existing online presence (e.g. website or social media), and have a retail outlet through which they derive the majority of their revenue. Successful applicants will be awarded funding to support a maximum of 80% of the project costs. Grants ranging from €10,000 to €40,000 will be awarded under the competitive scheme.
I am satisfied that there are sufficient supports in place for start-up online e-commerce businesses.