Future Irish competitive strength will rely on our ability to foster a culture of ideas and innovation

Check Against Delivery

Good morning, ladies and gentlemen.

I want to start by thanking Adrian Hopkins the Conference Director, for inviting me to address this conference. It is a great pleasure for me to be here today.

Let me also say thanks to the organisers of this conference who have done such a terrific job. The agenda is comprehensive, the speakers are first rate, and the issues are both interesting and important. So congratulations to all of you.

I would also like to thank all of today’s sponsors who must be commended for helping to foster the entrepreneurial spirit on which so much of our economic prospects depend.

As the newly appointed Minister for Small Business I want to be the voice of, all small business and entrepreneurs, to Government, to reflect concerns and bring forward proposals to assist businesses. My challenge now, and indeed the challenge of the new Government, is to prioritise where we will place efforts to best effect over the coming months - so that we do achieve change and make a difference.

I want to talk about the importance of entrepreneurs as a natural resource. Future Irish competitive strength will rely on our ability to foster a culture of ideas and innovation and in our capacity to translate these into successful businesses with high-value jobs. We need Irish entrepreneurs leading and working in these companies.

To support entrepreneurship, our challenge in Government is to ensure that we can help create an environment in which many of the good ideas of today are turned into great businesses of tomorrow. I want to ensure that entrepreneurship continues to be a valued profession.

Government is absolutely focused on ensuring that entrepreneurs and young companies are supported in every way to develop their business, increase exports, create jobs and rebuild the economy.

Now more than ever we need ambitious and energetic entrepreneurs who can play a real part in driving a positive uplift in the economy. Every one of these potential employers who are willing to take a risk is playing their part in getting Ireland back on track, contributing in a tangible way to the wellbeing of local communities.

This is why the Government has made available €18m for direct support to the micro-enterprise sector in 2011, through the work of the County Enterprise Boards, which, against the background of considerable pressure on public finances represents a strong State investment in entrepreneurship.

Furthermore, the Government, through Enterprise Ireland, supported the establishment of 80 new high potential start-up companies (HPSUs) in 2010, involving over 150 entrepreneurs. These innovative young companies will create over 770 new jobs over the next three years, bringing their total employment to almost 1,300. Total sales over the same three year period are expected to reach €528 million, with exports accounting for over 80% of this figure.

Over the past decade Enterprise Ireland has supported over 800 high potential start-up companies which are responsible for employing over 25,000 people directly and indirectly in the wider economy, and have combined sales of over €1.5 billion, 75% of which is exported.

As we all know, the world is changing at the speed of light and in order to succeed in this new world we need to be innovative – adopt new technologies, techniques and approaches that improve our way of doing business. Generating fresh solutions to problems, and the ability to create new products, processes or services for a changing market is essential. And this is where the entrepreneur can shine. You succeed, by establishing your own uniqueness and excellence.

But there is no machine or formula for generating creativity. Our role in Government is to provide the right supports, the investments and the incentives that will steer entrepreneurs in the right direction towards fulfilling their potential, achieving success and meaningful job creation.

But it is the private sector that has the talent, the technology and entrepreneurial drive to play the primary role: to generate the high-paying jobs of tomorrow.

Supporting locally traded business has never been more important than in the current climate. I want to emphasise that I recognise the diversity of small businesses and their differing needs. A large proportion of small businesses are owner managed enterprises providing the owner with just enough income to support his family. There’s no glamour, no riches, but this is the true heart and soul of many Irish business.

The dedication and perseverance of business people running locally traded companies and the positive contribution they make to the lives of Irish people throughout the regions should not be underestimated. They are crucial to the enhancement of Ireland’s overall competitiveness and growth and should not be overlooked. Small business is not only a vital part of our economy; it is a vital part of our society and local communities as well. That is why I want to ensure that the business environment is supportive for them.

This Government is committed to doing more to reduce the cost base for business and our Programme for Government outlines a range of reforms and initiatives to improve the overall competitiveness of the economy and its capacity to innovate with a focus on helping the domestic economy, while continuing to maintain a strategic focus on exports and investment.

Access to Finance is a key issue for the small business sector. We all agree we need a financial system that is better suited to the needs of our smaller company sectors. Financing the productive capacity of the economy is critical to long-term economic success. While large businesses have various options open to them, including the capital markets, small businesses are heavily dependent on the banking system. Many small businesses have contacted me about the problems caused by their difficulties in accessing credit. We are making headway in addressing these difficulties.

The introduction of a targeted Temporary Partial Credit Guarantee Scheme was one of the commitments announced in the Jobs Initiative launched last May and I am pleased to confirm that a design is now underway. We hope to roll out this scheme towards the end of the year.

This Scheme will be closely targeted at commercially viable, well performing companies that have a solid business plan and a defined market for their products or services, thereby demonstrating their ability to repay the loan.

The Scheme will provide a level of insurance to banks against losses on qualifying loans to job-creating firms to get banks lending again to industry and entrepreneurs. Of itself, the temporary partial credit guarantee scheme will not solve all the issues around access to credit but it will form a key component in the suite of initiatives aimed at ensuring the flow of credit.

The Micro-Finance Start-up Fund is another key initiative:

If we are to spread a culture of entrepreneurship across the whole country, we need to empower people to strike out on their own and to shape their own future. A priority for my Department—and one that has a significant entrepreneurship focus is the introduction of a microfinance fund.

We are committed to rolling out a Micro Finance Start-Up Fund to help people to fulfil their entrepreneurial potential. This Fund will provide small loans up to €25,000 to all start-up, newly established, or growing small business concerns with under 10 employees, across all sectors. Further details are anticipated in the context of Budget 2012.

For the budding entrepreneur with a strong business plan and also owners of micro-enterprises, this Government wants to help you to be a success, and we want to reach out to more people who have the ambition and drive to set up their own small business.

Arrangements for the establishment and operation of the fund are being developed in consultation with the relevant stakeholders, with a view to formalising proposals for this year’s Budget.

The Prompt Payments Initiative will also play an important role in redressing the cash flow difficulties experienced by small businesses. It is important that Government pay their bills on time to all the businesses around the country who supply goods and services to the public sector. To improve the cash flow of businesses, and particularly small businesses trading domestically, the Government is now requiring the Health Service Executive (HSE), the local authorities and all other public sector bodies, excluding commercial semi-State bodies, to pay their suppliers within 15 days of receipt of a valid invoice.

These new arrangements will directly assist SMEs by improving their cash flow.

Consulting with business has been a major focus of my responsibilities as Minister for Small Business. I want to interact as much as possible with the small business community across all sectors, to hear your views, and most importantly, to act on the issues raised.

On Thursday 16^th June, the Taoiseach, Enda Kenny launched the Small Business Advisory Group, which I personally am Chairing.

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 and the State enterprise support agencies. Primarily, the Group will provide policy advice to me and my Department, for onward reference to Government, on the key issues affecting the SME sector and what initiatives/actions should be prioritised to address these.

Reducing business costs and burdens to the small business sector is, I know, an issue that concerns you all. Our Programme for Government acknowledges the need to reduce the administrative burden on businesses and identifies initiatives in this area. The High Level Group on Business Regulation is working to fast-track simplifications to specific red tape issues identified by business and continues to work with business interests to identify new opportunities for simplification.

Entrepreneurs are attracted by the prospect of success, and need to be encouraged and supported to make their mark and build a better future for themselves and this country. We want to help create the conditions for you to succeed today, tomorrow and for many years to come.

At the end of the day, it’s not the Government working alone that is going to lead our economy to recovery. It is business leaders, entrepreneurs, researchers — people who are willing to innovate, take chances and dream the big dreams.

Even though today’s Conference is entitled “Out on Your Own”, as Minister for Small Business I want you to know that you are not alone.

I want you to know that this Government will be working with you to create the best environment to enable your business to thrive and grow.

Enjoy the conference.

Thank you very much.

ENDS