Speech by the Minister for Enterprise, Trade and Innovation, Batt O’Keeffe TD, at the ‘Out on Your Own’ Sunday Business Post conference, RDS Concert Hall, Dublin

20 October, 2010

I want to first of all thank you for your invitation to join you here today.

Last year’s Dublin event was, I understand, a huge success, with more than 560 delegates attending and 20 exhibition stands.

This year’s event, sponsored by Sage Software, promises to be equally impressive.

I want to acknowledge Sage Software’s involvement in today’s event and in last week’s event in University College Cork.

The importance of the theme of your conference is matched by the excellence of the speakers you have lined up for today.

Entrepreneurship and small businesses are vital for Irish economic recovery and growth.

There is no doubt that the world’s economy has gone through an unprecedented upheaval in the past two years and the Irish economy has suffered profoundly as a result.

The Government’s priority is to ensure that the business environment continues to support enterprise and export performance and encourages growth in all areas of the economy.

When it comes to entrepreneurship, Ireland’s performance is well above the European average.

Our levels of total entrepreneurial activity, the numbers who want to become self-employed and those involved in entrepreneurship education, all exceed the European average.

The proportion of assistance the Irish Government earmarks for small-to-medium-sized enterprise (SME) support is almost double the amount invested in other EU countries.

This strong performance is a consequence of matching the ideas and energy of entrepreneurs with targeted assistance from our State agencies.

The network of county enterprise boards (CEBs) provide a vital point of contact for entrepreneurs and small businesses around the country.

I have recognised the key role the CEBs play in fostering ideas and, as a result, the Taoiseach and I announced last week an additional €3.3 million for them.

This money will allow entrepreneurs to bring their ideas to the marketplace and, in the process, create over 450 new jobs.

In addition to the CEB activity for micro-businesses, stimulating the flow of new high-potential start-ups and supporting their growth is a fundamental principle in Enterprise Ireland’s overall strategy for indigenous industry.

Last year, Enterprise Ireland supported the business plans of 73 high-potential start-up companies.

These new companies are an integral part of the Government’s blueprint for the smart economy and they are from sectors as diverse as life science, bio-technology and medical technology, food, telecommunications and internet services.

We aim to increase this to 100 high-potential start-ups a year by 2016.

The latest available data shows that, despite the difficult economic climate, the upward trend in sales by Irish-owned enterprises since 2003 has continued.

Annual sales growth of these Irish firms is up nearly 4pc year on year up to 2008.

Enterprise Ireland predicts that, this year, Irish firms will win back 70pc of exports lost last year.

This is further evidence of the resilience, talent and determination of Irish business people like yourselves.

These businesses deserve an operating environment that supports them.

Competitiveness and costs are issues that have been raised with me on numerous occasions by businesses of all sizes and in all sectors.

We are seeing lower costs in the economy.

Wage costs, asset prices and energy prices are all on a downward trajectory.

The Irish price level relative to its trading partners is now back to levels last seen in 2000 and 2001.

But I believe we can and must do more to reduce costs to business and improve our competitiveness.

We have seen more positive signs in recent weeks in terms of employment, trade and availability of credit.

Recruitment agencies report that there has been a healthy 6pc increase in jobs advertised online and three-quarters of these are for newly created positions.

We can draw some optimism from the fact that one in five small firms expect to increase their employee numbers next year.

Our trade surplus is up 29pc to €4 billion.

The value of exports in July was up by 12pc compared with last July.

John Trethowan, head of the Credit Review Office, said this month that the ‘worst is over’ for small business borrowers and that the situation was much more positive for bank customers than it was six to nine months ago.

Looking to the future, I said at the outset that in terms of entrepreneurship Ireland’s performance exceeds the EU average.

If there is one thing that sets entrepreneurs apart from others it is the unwillingness to accept the status quo and average performance.

Government must match this ambition.

We are positioning Ireland to be successful in selling our goods and services abroad, winning global investment and attracting visitors from around the world.

Entrepreneurs and small businesses are at the heart of that.

The increased funding provided for enterprise under the Government’s capital programme will provide for the establishment of a €500 million Innovation Fund, as well as more funding for Seed and Venture Capital and Angel Funds.

Innovation Fund Ireland brings a new dimension to our existing venture capital sector, allowing more innovative ideas to become commercial realities in an improved competitive environment.

Our new integrated Trade, Tourism and Investment plan, ‘Trading and Investing in a Smart Economy, sets a number of ambitious targets to be achieved by 2015.

We will increase the number of new export-focussed jobs by over 150,000, with a similar number of indirect jobs created.

We will increase the value of exports by indigenous companies by 33pc.

We will diversify the destination of indigenous exports.

We will increase overseas visitors to eight million.

We will secure an additional 780 inward investment projects through IDA Ireland.

Although our recovery will be export-led, we do not underestimate the importance of our domestically traded businesses.

These small firms make a vital contribution to employment and to Ireland’s overall competitiveness.

Locally available, competitive and efficiently produced goods and services play an important role in the economy’s overall wellbeing.

If I can conclude with a few words about our immediate challenges.

The next few months will see difficult choices being made that will impact on every individual and business in the country.

I can understand how this would dampen the confidence of entrepreneurs and small businesses but, can I say for my part, I am advocating strongly in Government for a budgetary approach that recognises that business is the engine of our recovery.

We must ensure that everything is done to support and protect our existing enterprises as well as fostering the businesses of tomorrow.

We must have confidence for the future.

Ireland will recover and Ireland has a bright future.

I hope you have a very productive and enjoyable day at the conference.

Go raibh maith agaibh.

ENDS

Bernard Mallee, Press Adviser to Minister Batt O'Keeffe, Department of Enterprise, Trade and Innovation, on Tel: +353 1 631 3944, Mobile: +353 87 9173022, Email: bernard.mallee@deti.ie