Ireland has a strong start-up ecosystem, but scaling remains a challenge due to limited access to long-term patent capital and finance. My Department is finalising a finance for scaling implementation strategy. This strategy will align with the commitments outlined in the programme for Government and supports the specific actions set out in the action plan on competitiveness and productivity. The purpose of the strategy is to move towards an ecosystem in which firms will have a reliable range of funding options to scale and expand. The strategy will include an SME scaling fund administered by Enterprise Ireland. The exact design features of the fund are being developed, but my Department, together with Enterprise Ireland, intends to have the fund in place as soon as possible. The work to have a fund in place in 2026 will be progressed over the coming months. It is important to note that the SME scaling fund is only part of a suite of instruments to be delivered across two phases that will work to enhance the ecosystem and, consequently, reduce the gap in the market. For example, policy actions to further incentivise private capital to invest more at the scaling stage will be developed in the second phase of the work which is already under way. All of this work follows on from the report of the finance for scale-ups working group entitled the Use of Finance as a Catalyst to Develop a Scaling Ecosystem, which was published by the Department in July 2024 and which is available online. The finance for scale-ups working group examined good practices in other countries and established an international subgroup specifically to examine policy interventions in other EU member states, including Denmark, Finland, France, Spain and Sweden. It also looked at the UK and Singapore. The recommendations in the report were informed by the research of the international subgroup and included the introduction of a State-backed scaling fund.
Sentiment score: 0.14
I thank the Deputy for the points he has raised. I assure him that the fund is being designed in conjunction with Enterprise Ireland. We hope it will be operational in 2026. We expect that there will be direct investment in start-ups first. To the Deputy's point, we need to support indigenous Irish SMEs. That will enable Enterprise Ireland, which does tremendous work in the context of co-investing alongside private leads. Enterprise Ireland has a great reputation as being the honest broker in regard to seed and venture capital schemes. We want to sequence this to ensure that SMEs have early deployment and long-term leverage, and that we can give them investment when it is required. On the size of the equity gap, we estimate that to be in the region of €860 million to €1.3 billion. The State's role is to act as a catalyst as opposed to replacing private markets. We need to support that. The fund will be right-sized within the capital plan.
Sentiment score: 0.27
I agree with the Deputy. Our Department is very much about keeping Irish companies scaling and ensuring that they continue to realise their export potential and create anchor jobs within the regions and right across the country. The purpose in this regard is to protect vital jobs that are the backbone of our economy. That is why we want the strategy to operate on the basis of their needs. Enterprise Ireland already does tremendous work in this space. There is an expert advisory panel comprising industrial leaders, venture capitalists, Scale Ireland and tax specialists. The panel has met on four occasions since December 2024. We want to ensure we are shaping this, that there is a governance standard in place and that, in the context of the Deputy's point, we can support many companies that need of capital at this time in their business journeys.
Sentiment score: 0.27
I thank the Deputy for his question. The Government acknowledges that the retail sector contributes to the economy of every city, town and village in Ireland. The sector provides highly important employment with over 220,000 people directly employed in retail. The programme for Government is clear on the intention to support small businesses and as the Minister of State with responsibility for retail, I am aware of the issues facing retailers. The broad range of supports for the retail sector, including training programmes and funding to help retailers adapt to new challenges and opportunities in retail, can be found on the national enterprise hub, NEH. The NEH is an all-of-government service staffed by expertly trained advisers and is focused on helping businesses to access a range of Government supports. The hub brings together information and resources of over 250 Government supports from 32 different Departments and State agencies. The grow digital voucher offers up to €5,000 to small businesses, including retailers, to invest in technology such as e-commerce software, online booking systems and stock control, which are designed to enhance productivity and competitiveness. The energy efficiency grant provides up to a maximum of €10,000, with a 75% contribution rate from the Government to support investment in technologies and equipment identified in a green for business, GreenStart or Sustainable Energy Authority of Ireland, SEAI, energy audit. The aim of the scheme is to reduce the impact of enterprises on the environment, thereby increasing the agility and resilience of these businesses. In 2024, the Government introduced the power-up grant and the increased cost of business, ICOB, scheme, which paid out over €400 million to businesses. Included in this was a second ICOB payment and a €4,000 power-up grant for businesses in the retail sector. The Department opened a reclassification appeals process this July, which allowed businesses in the retail sector that had initially misclassified their business category an opportunity to reclassify. The cost of business advisory forum has been established, comprising SME and industry representative organisations, and the forum held its inaugural meeting in July. A report is due to the Government in the first quarter of next year, which will outline the forum's findings and highlight the steps that can be taken to mitigate rising costs.
Sentiment score: 0.38
Retail is evolving rapidly. We have seen significant changes in consumer habits. Shoppers now expect an online channel or experience, not just the physical presence on our high streets, as the Deputy experiences in Offaly, but also for them to offer multiple touchpoints, such as the implementation of websites, the digitalisation journey, mobile applications and in-store options. The Government is supporting businesses in that. There is a grow digital voucher of up to €5,000 for e-commerce platforms. We are also supporting business with consultancy advisers in digital transformation and local enterprise offices, LEOs. The Offaly office provides mentoring training and grants for lean, green and digital initiatives. We need to continue to support the retail sector, because we know how important it is. We are working with other Departments and with the Minister of State, Deputy Cummins, on planning statements around a retail strategy. That will ensure we have a balanced retail presence of physical stores and digitally integrated ones.
Sentiment score: 0.22
We are undertaking a review of the local enterprise offices to streamline them, reduce the administrative burden and make it easier for SMEs and businesses to access supports. We are conscious that we need to strengthen the role of the local enterprise offices because they have the local knowledge and are the touchpoint for many of these businesses in towns and villages across the country. They need that expert advice and mentoring to ensure that their businesses remain resilient and sustainable into the future. Through the work that we are doing in the cost of business advisory forum and the immediate financial relief that we are providing through the green transition and energy efficiency improvements, we want to support that because we know how important the retail sector is. As I said earlier, there are 220,000 jobs nationwide and we want to continue to support the Deputy's constituents in Offaly through sustainability and the competitiveness agenda, but also see how we can make it easier for businesses to access supports.
Sentiment score: 0.56
I thank the Deputy for his question. It comes from an accountant and, with the Minister being an accountant, I feel less qualified to answer it but I will do my best. The local enterprise offices, LEOs, are located in 31 local authorities to promote a suite of supports designed to assist small businesses to reduce their costs and become more productive and competitive. The LEOs provide consultancy and grants to small businesses across all sectors in the areas of lean, green and digital. These supports focus on enhancing productivity while improving competitiveness, and they can help business owners identify opportunities to save money, time and energy. The LEOs also play a crucial role in supporting small businesses to build financial capability, including a practical understanding of profit, loss and cash flow management. Training programmes are scheduled based on local demand and delivered on a tailored basis to meet the specific needs of small businesses. LEOs are consistently encouraged to prioritise financial literacy when designing their training calendars. This year, the LEOs delivered a wide range of targeted courses to enhance the financial understanding of SMEs. Each course is designed to equip small businesses with practical skills in financial planning, cash flow forecasting and understanding profitability. Among the courses delivered were financial foundations for small businesses, managing cash flow in business, managing your cash flow, fundamentals in business finance and bookkeeping and accountancy for small businesses. The LEOs also offer a start your own business training programme aimed at those who have a business idea or have recently set up a small business. This programme includes a dedicated finance module to ensure new entrepreneurs gain essential financial knowledge.
Sentiment score: 0.39
I absolutely agree with the points the Deputy raises. Financial literacy is a cornerstone of competitiveness and that is why we have the LEOs ensuring small businesses have the tools to manage their finances effectively. They are on hand to assist at county level, including financial mentoring, training workshops and management development programmes. It is important that owners who want to advance their financial planning skills are supported, that any perceived challenges around financial management are demystified and that business owners make informed decisions and avoid common pitfalls. For start-ups, we have the start your own business programme. That has a specific finance module wherein the LEOs provide specialist mentoring to entrepreneurs and owners on strategies around pricing, cash flow and profit and loss.
Sentiment score: 0.34
I appreciate the concerns the Deputy has raised. For any business owners, it is incumbent on the Government and the LEOs to ensure they are sustainable, have resilience built into their business plan and have access to the mentoring, training and advice that are essential to keeping businesses afloat. Raising the importance of financial literacy and ensuring businesses have access to training workshops is part of the local enterprise offering. They have peer-to-peer learning and engagement with key advisers within each local authority. We want to continue to support this through tailor-made programmes. The start your own business programme has an important financial module. Enterprise Ireland also invests in early-stage leadership development to ensure companies on that journey are supported.
Sentiment score: 0.44