Measures to boost boards’ financial support for small firms

THE Government has announced new measures which will enable county and city enterprise boards (CEBs) to broaden their financial support structures to SMEs.

Addressing this year’s Small Firms Association (SFA) annual conference at Dublin Castle, yesterday, the Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan announced the initiatives aimed at broadening the scope of start-up and development costs that can be assisted by local enterprise boards around the country.

The changes will effectively align CEBs more closely with supports from the other enterprise support agencies and ensure a more consistent approach of SME aid.

“As a result of these changes, supports will now be available for all legitimate business costs directly attributable to starting a new business, or growing and developing a business, rather than being restricted to asset acquisition,” the Tánaiste said.

She also announced plans to bring forward a national entrepreneurship strategy soon — aimed at introducing more initiatives to encourage further entrepreneurial activity; particularly among female entrepreneurs and the country’s immigrant community.

Meanwhile, delegates also heard from SFA chairman, Dr Aidan O’Boyle who took the opportunity to call for a Government- backed loan guarantee scheme to ensure the flow of fresh credit to Ireland’s small business network.

“NAMA of itself will not, in our view, produce this result. Unless the lending risk to the banks is reduced by the introduction of such a loan guarantee scheme, many small businesses are going to continue to struggle.

“We, small business, are the lifeblood of this country and it is time this was recognised.

“We need action and not further reports,” he said.

In the SFA’s most recent credit survey — published earlier this month — 25% of respondents reported a decrease in the availability of working capital in the last three months, while 21% reported a decrease in investment finance.