Assisting Indigenous Business to Grow

Enhancing Indigenous Performance

 

Sustainable economic growth and employment opportunities in Ireland will only be achieved through the development of our enterprise base and our export performance. Supporting new and existing indigenous businesses to grow and export is central to our plans for recovery, growth and jobs, therefore in 2012 we will:

 

3.1 Secure 200 significant (over €500,000) investments by EI‐assisted firms during 2012 in a range of areas which are critical to company growth and job creation. (Enterprise Ireland)

 

3.2 Enterprise Ireland and the IDA will establish a senior management team to drive effective collaboration deliver on key priorities such as:

  • Attracting inward Start‐Ups;
  • Maximising procurement opportunities for Irish business with MNC’s; and
    • Coordinating a new faculty of leading edge companies to provide peer to peer learning to Irish companies. (Enterprise Ireland, IDA Ireland)

 

3.3 Building on commitments in the second Global Irish Economic Forum,

  • develop a Mentoring Programme involving top business leaders from Ireland and internationally, to act as mentors to businesses,
  • develop linkages between firms,
  • engage the Diaspora to support potential and existing exporters,
  • examine the adoption of SMEs by multi‐nationals,
  • explore the leveraging of input or advice by experienced executives who have established successful businesses to companies in Ireland.(Enterprise Ireland, IDA Ireland, DJEI)

 

3.4 Support industry‐led clustering in key areas of opportunity, based on new models, industry proposals, and newly developed niche market strategies. (DJEI / Forfás / Enterprise Ireland / Industry)

 

3.5 Run key programmes aimed at improving in‐firm productivity capability. This will deliver increases in:

  • The number of Lean projects supported
  • The number of participants on significant management development programmes, with a total of 250 managers participating in 2012.
  • The number of participants on short‐course management development programmes, with a total of 700 managers participating in 2012. (Enterprise Ireland)

 

3.6 Establish a faculty of elite / leading edge indigenous businesses organised on a regional and/or national basis to promote peer to peer learning, experience sharing and collaboration with companies aspiring to leading positions. (Enterprise Ireland)

 

3.7 Raise awareness, particularly among SMEs, of the importance of process improvement to reduce the cost of poor quality, increase productivity, competitiveness and sustainability and create more jobs, via public seminars and other activity. (NSAI)

 

3.8 Support the micro and small business sector in developing an online presence via specific training supports, grants for ICT hardware and software, and funding research and innovation activity suitable to the needs of businesses in that sector. (CEBs)

 

3.9 Open a call for the Innovation Voucher scheme specifically focused on design and branding activity for SMEs, with Third Level Institutions as providers. (DJEI, Enterprise Ireland)

 

Assisting Indigenous Businesses to Trade

 

Indigenous company growth through trade is central to our plans for recovery, growth and jobs. The Government will progress the implementation of the Strategy for Irish Trade, Tourism and Investment to 2015. In order to assist indigenous businesses to trade internationally in 2012, we will

 

3.10 Establish a new Potential Exporter Division to stimulate greater activity within companies across all regions and to reorient those demonstrating real growth potential from the domestic to the international market place. The new unit will provide assistance designed to aid client companies investigate, prepare and execute an international strategy including:

  • Practical business advice, information and market intelligence
  • Targeted funding supports where appropriate
  • Suitable training and development

(Enterprise Ireland)

 

3.11 Introduce a Foreign Earnings Deduction (FED) as announced in Budget 2012, to further support the export drive by aiding companies where an individual spends 60 days a year developing markets for Ireland in Brazil, Russia, India, China and South Africa, and examine the extension of the FED to other countries beyond this initial group. (D/Finance)

 

3.12 Roll out a schedule of sector specific Trade Missions and market evaluation Missions that reflect the priority markets identified in the Trade Strategy as well as firms’ interest and stage of development, aiming for at least 15 Ministerial‐led Missions. (DJEI / DFAT / Enterprise Ireland / DTTS / Tourism Ireland)

 

3.13 Through the support of the international office network and high growth markets team, assist companies in their drive to secure new business overseas, and support the securing of 750 new buyers. (Enterprise Ireland)

 

3.14 Run an International Markets Week programme involving over 1,000 firm meetings in the week. (Enterprise Ireland)

 

3.15 Attract over 600 buyers to Ireland to engage with indigenous companies on international business opportunities. (Enterprise Ireland)

 

3.16 Develop and implement local market plans as provided for in the Strategy for Trade, Tourism and Investment for key high‐growth regions, and through the Export Trade Council work to optimise the resources of embassies and agencies to deliver ambitious targets. (D/FAT / DJEI / DAFM / Enterprise Agencies / DTTS / Tourism Ireland)

 

3.17 Promote Enterprise Ireland’s ‘Source Ireland’ portal to market Irish goods and services abroad. (Enterprise Ireland)

 

3.18 Drive take up of the Going Global Fund to assist companies who wish to explore opportunities to internationalise their business as a route to growth. (Enterprise Ireland)

 

Continued investment in management development will help Irish companies to

grow and to retain and create jobs. Therefore in 2012 we will:

 

3.19 Reallocate up to €1.2 million per annum from the National Training Fund to fund management development networks and mentors for SMEs through Skillnets. (D/Education and Skills / Skillnets)

 

3.20 Cascade Management Development learnings to a wider number of companies – including through support for approximately 250 Managers to participate on long management development programmes and support over 700 managers to participate on shorter development programmes. (Enterprise Ireland)

 

3.21 Expand graduate programmes including a target of 120 graduates participating on Graduates 4 International Growth – plus develop and pilot a new Innovation Graduates programme. (Enterprise Ireland)

 

Further opportunities will arise for Irish businesses from enhanced consumer confidence, better business practices, adoption of industry standards, and providing first class systems for goods and services to be recognised and relied on globally, therefore in 2012 we will:

 

3.22 Promote the achievement of standards such as ISO 9001 and similar management standards. (NSAI)

 

3.23 Support companies develop best HR practice and standards for improved talent development and retention. (NSAI)

 

3.24 Develop an Irish expert group responsible for industry standards best practice and increase participation by Irish firms and researchers in relevant international standards expert groups. (NSAI)

 

3.25 Grow employment in the indigenous measuring instruments service sector by undertaking a further roll‐out of the authorised verifiers scheme. (NSAI)

 

3.26 Provide expert assistance to targeted companies in challenging process measurement/ metrology applications. (NSAI)

 

The reality is that within any enterprise structure there is a constant churn of company formation and closure. Ensuring that the system is supportive as companies face difficulties, downsizing or closing is important. Therefore in 2012 we will:

 

3.27 Develop a simple one page guide, “Managing out of the Crisis”, setting out warning signs to encourage small businesses to ask for help and outline services available. (DJEI)

 

3.28 Examine the feasibility of introducing a new structured and non‐judicial debt settlement and enforcement system to meet SME needs ‐“Examinership Light”. (DJEI/Company Law Review Group)

 

Access to Finance

 

Access to finance, credit and cashflow remain crucial for SME development, survival and growth therefore in 2012 we will:

 

3.29 Design and launch a new Development Capital Scheme, aimed at addressing a funding gap for mid‐sized, high‐growth, indigenous companies with significant prospects for jobs and export growth. This Scheme will support companies which would not generally fall within the focus of seed or venture capital funds, by leveraging further institutional capital.  €50million of State investment is expected to leverage up to an extra €100million in private sector funding (Enterprise Ireland)

 

3.30 Roll‐out the temporary targeted partial credit guarantee scheme, to complement existing initiatives to improve the credit environment and to address specific market failures. (DJEI)

 

3.31 Launch a second call under Innovation Fund Ireland worth approximately €60million, to attract additional significant venture capital players to Ireland. (Enterprise Ireland)

 

3.32 Develop the mandate of the new Strategic Investment Fund for targeted investment to enterprise via equity and debt funding. (D/Finance / NPRF / DJEI)

 

3.33 Work with the banking sector both on one‐to‐one firm issues and to assist them in a cultural shift in lending practices towards sectors that are critical to economic growth. Develop better protocols with banks to enhance sectoral expertise within the banks and the range of lending products to meet exporter needs and tourism providers. (D/Finance / Credit Review Office / DJEI / Enterprise Ireland)

 

3.34 Monitor closely the lending targets for pillar banks and ensure these targets are met, and develop a sharper focus on the “new money” element. (D/Finance / Credit Review Office / DJEI)

 

3.35 Engage with stakeholders on the findings revealed in credit supply and demand surveys with a view to identifying and addressing blockages in the system. (D/Finance / Credit Review Office / DJEI)

 

3.36 Conduct a follow‐up survey on demand for credit from SMEs. (D/Finance)

 

3.37 Work with banks and small business representative organisations to help SMEs improve the quality of loan application. (Central Bank/Credit Review Office)

 

3.38 Arrange that banks formally notify clients who have been refused loans of the right to an internal review by the bank and an appeal to the Credit Review Office. (Central Bank)

 

3.39 Work with the banks to ensure that sufficient training and development procedures are in place to enable staff to make more informed lending decisions, in addition to monitoring refusal rates, internal appeals and appeals. (D/Finance/ Credit Review Office / DJEI)

 

3.40 Assess the Credit Review Office to ensure SMEs are getting the support on bank lending they require. (D/Finance / Credit Review Office / DJEI)

 

3.41 Review the equity investment landscape in Ireland with a view to introducing actionable steps (enterprise supports, tax, etc) to support equity investment in productive firms. (Forfás / DJEI D/Finance / Enterprise Ireland)

 

3.42 Establish a working group to ascertain the need for the State to continue its support, on the same terms as the private sector, for the development of the domestic venture capital sector.  (DJEI, EI, NPRF)

 

3.43 Promote the Employment and Investment Incentive Scheme for business expansion and ensure the objectives of the Scheme are being achieved and assess if any amendments are required. (D/Finance / DJEI)

 

3.44 Make available to SMEs an Official Notice regarding the Government’s current 15 day Prompt Payment Practice. (DJEI)

 

Enterpriseand Employment Expansion Supports

 

There is also scope to target a substantial expansion in the take‐up of existing and new supports for the expansion of enterprise and employment, therefore in 2012 we will:

 

3.45 Issue to persons who are over one year unemployed a certificate to present to employers of eligibility for Revenue Job Assist. (D/Social Protection)

 

3.46 Simplify and extend the Employer Job (PRSI) Incentive Scheme, which exempts employers from liability to pay their share of PRSI for certain employees. The scheme will be extended to cover the first 18 months of employment.

 

 Eligibility criteria for the scheme will be amended to

o Allow time spent on the Work Placement Programme and JobBridge count as the qualifying period for the scheme

o Allow persons on eligible payments undertake short SOLAS courses without impacting on their eligibility

o Allow time spent in casual unemployment count towards the qualifying period for the scheme, where a person is progressing to a new full‐time job offered by a different employer

o Allow linking periods for illness payments provided on qualifying payment immediately prior to commencement of employment (D/Social Protection)

 

3.47 Target the increased take‐up of support schemes available to employers who take on additional workers, such as Revenue Job Assist and the Employer Job (PRSI) Incentive Scheme, by increasing employers awareness of the schemes through relevant Departments, agencies and business and employer representatives; we will actively monitor the take‐up of the schemes and remove any identified obstacles to increased take‐up. (D/Social Protection. Revenue, DJEI, Enterprise agencies, employer representatives)

 

3.48 Examine the availability of affordable childcare for people on lower incomes to determine whether existing schemes could be expanded to support people to take up employment. (D/Children & Youth Affairs, D/Social Protection)

 

Maximising Procurement Opportunities

 

Public procurement remains at significant levels and presents a particular opportunity for new and established SMEs to secure new business and grow employment, therefore in 2012 we will:

 

3.49 Facilitate more SMEs in competing for procurement opportunities by ensuring that prequalification criteria (e.g. turnover, insurance thresholds, experience) for public procurement contracts are proportionate. (DPER/National Procurement Service)

 

3.50 Establish a mechanism to allow SMEs to engage with contracting authorities on issues of concern in specific tender documentation. (DPER/NPS)

 

3.51 Assign advisers, mentors, and Business Accelerators with specific public sector knowledge to advise and help firms win more sales from procurement. Local Authorities will also assist and communicate with local businesses to maximise their participation in the procurement process and will improve the Local Authority procurement database (LA Quotes) to make it more user‐friendly for SMEs.  In parallel, through Enterprise Ireland and Local Authorities, highlight to major contracting authorities the supply opportunities from indigenous businesses, and particularly SMEs. (Enterprise Ireland, Local Authorities)

 

3.52 Initiate a campaign to encourage more SMEs to register on the Government’s eTenders website to enable forthcoming procurement opportunities to be brought to their attention. (National Procurement Service, Enterprise Ireland)

 

3.53 Develop a Procuring Innovation initiative to increase the purchasing of innovative solutions from SMEs by encouraging a more flexible approach to tendering that focuses on procuring solutions to specific needs, rather than specific products or services. (DJEI/National Procurement Service/DPER/Enterprise Ireland)

 

3.54 Identify a number of key projects across Government that will provide sub‐contracting and supply chain opportunities for SMEs through pre‐qualification panels. (National Procurement Service/ DJEI/Other Departments/Enterprise Ireland)