Harnessing opportunities in Europe for Irish SMEs is key to Ireland’s continued expansionary economic performance

Check Against Delivery

Good Morning Ladies and Gentlemen,

Thank you to the organisers, Network Mayo and the European Parliament Information Office for giving me the opportunity to address you today.

The importance of the SME sector is well recognised by the Irish Government and for those companies who want to grow, an international perspective is vital. Embracing international trade and harnessing the extensive opportunities in the European Single Market for Irish SMEs is key to Ireland’s continued expansionary economic performance.

For the modern economy, Irish businesses have to be at ease with globalisation. That means doing business in more than one country must become the norm.

We want to ensure that new companies learn to develop products with global appeal and start marketing them internationally very early on in the product development cycle.

As SME Envoy for Ireland in the European Group of National SME Envoys one of my roles is to work towards ensuring that policies at national, regional and local level are enterprise friendly. I look forward to playing a constructive role with colleague Envoys. The appointment at Ministerial level rather than at the level of officials reflects Irelands commitment to SMEs.

This Government is acutely aware of the importance of the small business sector, its potential for generating employment, and the problems encountered by entrepreneurs in accessing finance. Our Programme for Government and the Jobs Initiative fully recognises this fact.

My role as Minister for Small Business in the Department of Jobs, Enterprise and Innovation is dedicated to ensuring that small businesses will play a central role in our economic recovery.

Some issues impacting on SMEs have already been addressed in the recent Jobs Initiative which included the following key initiatives:

• The design of a Temporary, Partial Credit Guarantee Scheme. A targeted Scheme will be in place over the coming months and will operate for one year;
• An initiative on a Microfinance Fund;
• The extension of the 15-day prompt payment arrangements across the wider public sector in Ireland for invoices received after 1 July 2011;
• Greater emphasis in making public procurement more accessible to small businesses, including through identifying and overcoming barriers to their participation in the procurement process;
• PRSI changes to encourage employers to recruit new employees;
• A reduction in the 13.5% VAT rate to 9% in certain areas, primarily restaurant and catering services, hotel and holiday accommodation, and various entertainment services. This complements other initiatives that were taken in the tourism sector, such as the abolition on the Travel Tax;
• Review of Sectoral Wage Agreements (hotels, restaurants, catering, and construction) in order to improve competitiveness.

In my role as Minister for Small Business I Chair the Small Business Advisory Group which was formally launched by the Taoiseach on the 16^th June. The membership is focused on business people with direct experience in running a business, and the Group includes entrepreneurs and representatives from the main small business representative bodies, the Credit Review Office, the State enterprise support agencies. It has been assigned flexible and broad Terms of Reference, which will facilitate business concerns being brought before the Group, and we will identify what issues need to be addressed as a priority and make recommendations on what measures can be considered to further support small business. I recognise that the Small Business Advisory Group will be working against the backdrop of the most difficult challenge ever confronted by this State in relation to the position of the public finances. Any initiatives developed must have regard to what is deliverable in this context. I am very encouraged by the positive engagement by the Members of the Group and by their desire to bring forward practical suggestions to assist the SME sector.

As the voice of small business to Government I will ensure that SMEs have a voice in this administration and that pro-business policies are followed.

Thank you all and I wish you all every success in your future endeavours.

ENDS