SFA makes pitch for new semi-state bank dedicated to small businesses

New three-year strategy for small business launched on Monday

Mon, 12 Jan, 2026 - 00:05

Martin Claffey

A new three-year strategy launched on Monday by the Small Firms Association (SFA) calls on the Government to explore the establishment of a semi-state bank dedicated to servicing small business.

The SFA three-year strategy document, entitled ‘Putting the Small Business Owner First’, aims to place Ireland’s small business owners at the heart of Government policy, "ensuring they can survive, grow, and thrive". Around 859,000 people are in direct employment in small businesses and 43% of people employed in the private sector work in a small business.

The SFA strategy has six key pillars: Growth & Competitiveness, Access to Finance, Skills & Talent, Digital & Productivity, Representation & Policy Influence, and Communication & Community. With regard to access to finance, the strategy will see the SFA "engage with pillar banks, alternative lenders, and Government to call for policies to devise new incentives and frameworks that simplify lending criteria, improve credit availability to small businesses".

The SFA will also "explore the establishment of a semi state bank dedicated to servicing small businesses", and advocate for financial products "aligned to the realities of small business cash flow, investment cycles, and growth stages".

“Today, small business owners need costs to reduce. Small business owners also need better access to finance, fewer regulations, and support for recruitment and staff retention," said SFA director David Broderick.

The SFA will advocate for the State to establish a centre of excellence for small business owners to enable digital transactions and upgrades.

With regard to growth and competitiveness, the strategy will see the SFA campaign to reduce administrative burden. It will also work with Government to ensure indigenous firms are not disadvantaged relative to FDI in policy or practice, and to create a "level playing field" for small businesses to compete.

In line with OECD recommendations, the SFA said the introduction of a National Training Voucher Scheme would support employers, and particularly SMEs, in addressing both the direct and indirect costs of training.

The Small Firms Association represents businesses that employ fewer than 50 employees across Ireland. It says 96% of all enterprises in the Irish economy are small businesses. It cited CSO data that showed that productivity in Ireland declined by 1% in 2025, with small and micro firms experiencing the greatest pressure.

"Small business owners play an integral role in our communities, and the wider economy. This strategy sets out the SFA’s plan to assist Ireland’s entrepreneurs to survive and thrive in the years to come," said Mr Broderick.

“Amid the AI revolution, small businesses also need help to embrace digitisation and digital transformation to compete. This strategy is a blueprint for prosperity for the next three years. The SFA looks forward to work with key policy makers to fulfil the commitments in the current Programme for Government that will benefit small business owners. Small business owners play an integral role in our communities, and the wider economy.

"This strategy sets out the SFA’s plan to assist Ireland’s entrepreneurs to survive and thrive in the years to come.”

The strategy was launched at the SFA’s annual masterclass weekend for SFA National Small Business Award finalists at the Hodson Bay Hotel in Athlone. Enterprise minister Peter Burke acknowledged small businesses are a "critical part of the modern, innovative economy that Ireland has created. We can’t forget their impact and importance through the jobs they create, the families they support, and their role in communities. I welcome the publication of the Small Firms Association’s new strategy, and I look forward to engaging with over the years ahead.”