Minister McGuinness points to Local Enterprise as critical to Ireland’s economic future

County Enterprise Boards will be to the forefront of supporting Ireland’s economy through challenging times ahead

Mr. John McGuinness T.D., Minister for Trade and Commerce, on taking over Ministerial responsibility for the thirty-five County and City Enterprise Boards, has welcomed the opportunity to work closely with the Enterprise Boards to tackle the economic challenges facing Ireland. Minister McGuinness said that he was confident that the Enterprise Boards had shown their ability to serve their local community in both difficult and prosperous economic times in the past and that the Enterprise Board model would not be found wanting in the face of the current downturn in the economy.

The Minister said that the CEBs have had an excellent track record in tapping into local entrepreneurial potential and had increasingly focused on assisting enterprises with genuine potential for sustainable growth and employment. He added that he would like to see the Enterprise Boards continue with this approach to the best of their ability. “We need to keep the long-term economic picture in our sights and lay the proper foundations for better times ahead. The indigenous small business sector is, more than ever, the key to a solid economic futureand we must do our best to continue to encourage entrepreneurship and maintain the momentum built up in recent times” Minister McGuinness stated.

The Minister highlighted the success of the CEBs since their inception in 1993 with well over 30,000 jobs created in CEB assisted companies with over 2,000 jobs created in 2007 alone. Preliminary indications from the CEBs to-date are that 2008 will show another strong performance. The Minister went on to say that “the job statistics, welcome though they are, tell only one side of the story. Much of the worth and value of the Boards is the work that they do within their own County in encouraging, advising and mentoring expanding and new entrepreneurs and in sending out the message that setting up your own business is indeed a feasible option”.

The Minister said that the current climate surrounding public finances could not be ignored in relation to the level of funding available to the Enterprise Boards. However he remained confident that the Boards would be able to use available funding in a judicious and effective manner so as to ensure that business growth and development will not suffer.

Minister McGuinness added that his time as a member of Kilkenny County Enterprise Board in the past and his business experience had equipped him for his expanded Ministerial role in relation to Enterprise Boards and the needs of business.

July 23, 2008

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Editors Note

• The role of the County and City Enterprise Boards (CEBs) is to provide support for micro-enterprise (10 or less employees) in the start-up and expansion phases, to promote and develop indigenous micro-enterprise potential and to stimulate economic activity and entrepreneurship at local level.
• The CEBs provide both financial and non-financial assistance to a project promoter. The forms of financial assistance which are available include Capital Grants, Employment Grants and Feasibility Study Grants. The criteria under which financial assistance is available is based primarily on factors such as the sector of the economy in which an enterprise is operating or intends to operate and the size, or proposed size, of the enterprise. The enterprise must be in the commercial sphere, must demonstrate a market for the proposed product/service, must have a capacity for growth and new job creation and must not employ more than 10 people. The CEBs give priority to enterprises in the manufacturing or internationally traded services sector and the CEBs must always give consideration to any potential for deadweight and displacement arising from a proposed enterprise. The provision of non-financial assistance can take the form of a wide range of business advice and information services, management capability training and development programmes, mentoring programmes etc.
• The CEBs have been to the forefront in stimulating a culture of entrepreneurship and supporting micro-enterprise since their inception in October 1993. In excess of 19,800 enterprises and over 34,500 new jobs have been supported by the CEBs in the last 15 years.
• Almost 9,500 participants have engaged in enterprise training and management development initiatives organised by the CEBs during the first half of 2008. Training programmes are tailored to meet the needs of business right throughout their lifecycle from the pre-start-up and start-up phase, through to the early stages of growth and to growing and mature companies. This investment in the micro-enterprise sector is ever more essential as Ireland strives to improve competitiveness and productivity in this sector.
• It is also very encouraging that some 55% of all participants availing of enterprise training from the CEBs are female. Boards have a range of initiatives and networking opportunities specifically targeting female entrepreneurship. It is proposed to hold a National Women in Business Conference in Mullingar on 28^th November 2008.
• Networking is key to facilitating business growth among CEB clients. It facilitates the creation of an environment conducive to interaction, where entrepreneurs can exchange ideas, make contacts and generate new business. Mentoring and coaching supports provided by the CEBs are growing in demand as, in an economically cost conscious environment, entrepreneurs are increasingly looking at ways of reducing costs, maximising their sustainability, and ensuring long-term viability.
• Spawning innovative business ideas, regular local and regional events are a hotbed for enterprising ventures in the CEB network. The Enterprise Bus is one such initiative. It is a joint venture between 15 CEB’s and Bank Of Ireland Business Banking and has been put in place to provide free advice mainly to people thinking about starting a business and those in the early stages of start-up. Since January the Enterprise Bus has visited multiple locations around Ireland including Town Centres, Business Parks, Educational Facilities & Shopping Centres and has had over 1,000 visitors.
• Another such initiative is the National Student Enterprise Awards. This competition attracted a total of 12,000-second level students in the current academic year. It plays a key role in promoting entrepreneurship as students are offered a real and practical experience of researching, setting up and running a business. In addition to making profits and enjoying the experience, students develop their creativity, enthusiasm and self-confidence.

Further information on Enterprise Boards can be obtained from contacting your local County or City Enterprise Board or by visiting www.enterpriseboards.ie