Importance of SMEs must be recognised

Over the past couple of weeks I have been participating in a series of seminars for the Irish Small and Medium Enterprise Association (Isme) around the country, writes Jim Power.

I have done this on a regular basis over the years and always find it incredibly enlightening and informative to gain exposure to a segment that accounts for around 54% of total employment in the economy, and 70% of total private sector employment, and which is at the coalface of Irish economic life. This time has been no different.

Most people recognise the rebuilding of the economy over the coming years will have to depend heavily on the Small and Medium Enterprise (SME) sector. This is not to suggest for one moment that the multi-national sector will not have a role to play, in fact the very opposite is the case. The IDA is doing a great job attracting foreign direct investment (FDI) to the country, but it is clear that the FDI environment is becoming more and more competitive, and if the latest corporate tax proposals from Obama were to see the light of day, it would make life considerably more difficult for the IDA. Hence, from an employment perspective, and particularly from a regional economic perspective, more weight is likely to fall on the shoulders of the SME sector.