Dáil Éireann Debate, Thursday - 23 May 2024
179. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the extent to which assistances towards small- and medium-sized enterprises here continues to equate with those available in other EU and non-EU jurisdictions; and if he will make a statement on the matter. [23503/24]
Amharc ar fhreagraIn Ireland, the support for small and medium-sized enterprises (SMEs) has been robust and multifaceted, reflecting the government's recognition of their critical role in the economy. Recently, the Government agreed on a range of measures aimed at reducing costs for SMEs, including reopening the Increased Cost of Business (ICOB) Scheme, introducing a second payment for businesses in the retail and hospitality sectors, and increasing the lending limit for Microfinance Ireland loans. These initiatives are designed to bolster the resilience and growth of SMEs in a challenging economic landscape.
My Department participates in a number of fora at EU and international level that facilitate the sharing of information on SME policies and programmes with other jurisdictions. Comparatively, within the EU, there is a concerted effort to harmonise support for SMEs to foster a competitive and innovative internal market. The EU definition of SMEs facilitates a unified approach to providing assistance, ensuring that enterprises across Member States can access similar opportunities for funding, market expansion, and innovation support. Ireland, aligning with EU policies, contributes to a cohesive framework that benefits Irish SMEs in the broader European context.
At EU level, my Department is an active participant in the EU SME Envoy Network, which is an SME policy advisory group that promotes SME-friendly regulation and policy making in all EU countries. The European Commission “Annual Report on European SMEs 2022/23” noted that “concerning SME value added in 2022, eight Member States (MT, DK, ES, SI, PT, IE, LU, BE) managed to experience actual growth”. This clearly demonstrates the effectiveness of the assistance towards small businesses in Ireland in direct comparison to other EU Member States.
Outside the EU, support measures for SMEs can vary significantly, with some jurisdictions offering more generous incentives, while others may have more stringent criteria for assistance. For instance, non-EU countries might not adhere to the same SME definitions or support frameworks established by the EU, leading to disparities in the level of assistance provided. However, Irish SMEs benefit from the stability and consistency of support within the EU framework, which is designed to be competitive on a global scale.
Ireland also participates in the OECD Committee on SMEs and Entrepreneurs, which is a valuable resource of data analysis and peer-learning among OECD member countries. OECD reports such as “Financing SMEs and Entrepreneurs 2024 An OECD Scoreboard” and “OECD SME and Entrepreneurship Outlook 2023”, show that Ireland continues to compare favourably to international peers.
The recommendations of a comprehensive OECD report on SME & Entrepreneurship Policy in Ireland directly informed the development of the SME and Entrepreneurship Growth Plan, the implementation of which is currently being led by my Department. The Taskforce prepares an annual report to Government on the implementation of priority actions originally arising from the Growth Plan. The Taskforce has identified the following eight priorities for action in 2024: Access to Finance (including funding and insurance), Digital Transformation, Increasing first time exporters & Enhanced assistance for high-potential businesses, SME Management Skills, Reducing the regulatory burden for SMEs & Cost of doing business, Delivery of the National Enterprise Hub, Ireland’s climate ambitions, Inclusive entrepreneurship.
Furthermore, Ireland is a member of the Small Advanced Economies Initiative, which is a network consisting of seven economies of a comparable size and structure. The initiative provides a forum for senior policymakers to share experiences and discuss issues of mutual concern.
While there are differences in the extent and nature of support for SMEs across various jurisdictions, Ireland's commitment to its SME sector remains strong and is in line with EU standards. The continuous evolution of support measures, both within Ireland and in the EU, aims to ensure that SMEs have the resources they need to thrive in an increasingly interconnected and competitive global economy.
