REGIONAL DEVELOPMENT PROGRAMMES IN IRELAND (MICRO-ENTERPRISE SUPPORT PROGRAMMES)

Presentation by Derville Brennan,

Research & Communications Officer

Southern & Eastern Regional Assembly

ERDF Managing Authority

PRESNTATION OUTLINE

Evaluation Culture Enterprise Policy Landscape Microenterprise Next Programme Period

PROGRAMMES IN IRELAND 2014 - 2020

2 Regional ERDF Programmes 1 ESF Programme 1 EAFRD Programme 1 Fisheries Programme

RESEARCH EVIDENCE AND POLICYMAKINGIN IRELAND*

Growing but recent base of evidence for policy in Ireland (Ruane, 2012)

Economic and social factors taking precedence over administrative concerns in policy design

EU Structural Funds – strong planning and evaluation processes Robust ex ante and ex post evaluation*Frances Ruane, Director Economic and Social Research Institute

RECENT REFORMS Department of Public Expenditure and

Reform’s Comprehensive Expenditure Report 2011Unified and updated Value-for-Money

(VFM) Code (appraisal (ex ante) and evaluation (ex post) of current as well as capital expenditure

• Creation of a Public Service Evaluation Network Forum for advancing the evidence-based

policy agenda

IRISH POLICY LANDSCAPE ON ENTERPRISE/INNOVATION (1) The future of Ireland’s “economic success

depends on increasing levels of innovation across all aspects of Irish enterprise...”( p.19).

No readily identifiable “alternative path to recovery other than one driven by innovation”(p. 19) Source: Innovation Ireland Report of the Innovation Taskforce

(2010)

“Enterprise therefore needs to remain at the heart of national economic policy supported by a truly integrated, coherent policy framework...”(p. 90). Source: Forfás (2009) Sharing our Future Ireland 2025 Strategic

Policy Requirements for Enterprise Development

IRISH POLICY LANDSCAPE ON ENTERPRISE/INNOVATION (2) Action Plan for Jobs – measurable milestones,

quarterly reportingalign education and training system with

the current and expected future needs of enterprise base

Establish a joint Industry-Government Big Data Task Force

ENTERPRISE AGENCIES IN IRELAND (1)NATIONWIDE MULTI-

SECTORAL:

PROMOTION OF

FOREIGN DIRECT INVESTMENT

WWW.IDAIRELANDCOM

PROMOTION OF INDIGENOUS ENTERPRISE, EXPORT PROMOTION

WWW.ENTERPRISE-IRELAND.COM

MANPOWER SERVICES AND TRAINING

WWW.FAS.IE

POLICY RESEARCH AND ADVISORY BODY

WWW.FORFAS.IE

FUNDING OF BASIC R&D IN ENTERPRISE

WWW.SFI.IE

FUNDING OF R&D IN THIRD-LEVEL INSTITUTIONS

WWW.HEA.IE

NATIONAL SECTOR-SPECIFIC:

DEVELOPMENT OF THE FISHERIES AND SEA-FOOD SECTOR

WWW.BIM.IE

DEVELOPMENT OF THE FOOD INDUSTRY

WWW.BORDBIA.IE

REGIONAL/LOCAL AGENCIES

INDIGENOUS INDUSTRY ENTERPRISE DEVELOPMENT IN MID-WEST REGION

WWW.SHANNON-DEV.IE

ECONOMIC DEVELOPMENT IN IRISH-SPEAKING AREAS

WWW.UDARAS.IE

CITY/COUNTY ENTERPRISE BOARDS

SUPPORT FOR MICRO-ENTERPRISE

(-10 EMPLOYEES)

WWW.ENTERPRISE-IRELAND.COM/

STARTBUSINESS/COUNTY_ENTERPRISE_BOARDS.H

TM

ENTERPRISE AGENCIES IRELAND (2) In 2011 there were over 80 different

programmes/supports offered by the following agencies which directly or indirectly assist industry beneficiaries:

-IDA Ireland - FDI

-Enterprise Ireland (including the County Enterprise Boards) – Indigenous Industry-Science Foundation Ireland (does not support industry directly but does so indirectly through its collaborative research funding programmes)

STRUCTURE OF INDUSTRIAL DEVELOPMENT IN IRELAND

Forfás - Ireland’s policy advisory board for enterprise, trade, science, technology and innovation Overarching view on industrial development Analyses industrial policy and advises

Government Departments and agencies Common Framework for Evaluation of All

Enterprise Support Programmes Categorises Enterprise Programmes by Theme On-going Evaluations:

Stream 1:Entrepreneurship and Start-Up Supports Stream 2:Research, Development & Innovation Supports Stream 3:Business Development Supports

FORFÁS EVALUATIONS OF ENTERPRISE AGENCIES

A very welcome development It provides a common basis for the

evaluation of enterprise support interventions

Explore potential linkages with other programmes

Logic model

DESIGN OF COMMON TEMPLATES

To facilitate cross-comparisons , Forfás developed 5 high-level steps to be applied across all evaluations they conduct:1.Define Evaluation Objectives and Describe the Programme (Using a Logic Model Approach)

2.Identify Appropriate Methodology for Analysis

3.Identify Data Requirements

4.Evaluate the Programme

5.Report and Review the Evaluation

Streams 1 & 2 are due for publication shortly

ENTERPRISE IRELAND (EI) (1)

Enterprise Ireland (EI) – Indigenous industry Industrial Development Act Industrial Services Order No specific legislation for micro-enterprise – supports

delivered under an enterprise framework

EI supports support sustainable economic growth, regional development and secure employment

Focus on: HPSU Added-value Supporting Manufacturing Internationally traded services

ENTERPRISE IRELAND (EI) (2)

Approx 2,500 enquiries per annum Approx 500 actively engaged with per annum

New Frontiers Business Innovation Centres Referrals to County and City Enterprise Boards

IRELAND, NUTS II & NUTS III NUMBER OF ACTIVE SMES 2010 SOURCE: CSO, BUSINESS IN IRELAND, 2010

IRELAND’S GROWTH & DECLINE OF ACTIVE SMES 2006-2010 SOURCE: CSO, BUSINESS IN IRELAND, 2010

SME sector in Ireland is very diverse and dominated by micro-enterprises (<10), accounting for 90.8% enterprises and 27.2% of employment

Employment in SMEs in 2010 fell to 81.6% of 2006 levels

Enterprise closures increased from 11,900 in 2006 to 24,500 in 2009

COUNTY AND CITY ENTERPRISE BOARDS

35 County & City Enterprise Boards (CEBs) CEBs are co-funded by the Irish Government and

EU Structural Funds Established in Ireland in 1993 Support for small businesses (‘micro-

enterprises’) with 10 employees or less, at local level

Direct grant-support to new and existing enterprises

Promote entrepreneurship, capacity building and women-in-business

Central Coordinating Unit Enterprise Ireland – Fitzpatrick Assoc evaluation recommendation

ERDF CO-FUNDED MICROENTERPRISE THEME

Cultivate entrepreneurship women and youth

Development of enterprise at a local level Intervention designed to:

Increase rates of business start-up and expansion Increase competitiveness, sustainability, innovation

and technological adaptation by micro-enterprises

SUITE OF SUPPORTS UNDER THE ERDF CO-FUNDED MICROENTERPRISE THEME

Advice Mentoring  Grants Supports for Training and Growth Local Enterprise Offices (LEOs); new structure

from 2014 under the Local Authority umbrella

KEY OBJECTIVES OF THE ERDF CO-FUNDED MICROENTERPRISE THEME

Nurture a positive culture of entrepreneurship Promote new innovative enterprises with growth

potential Start-Your-Own-Business training ; Schools enterprise programmes; Promotion of role models; Award schemes; Women-in-business; Plato networks; Export supports; Effective use of ICT; Owner/manager capacity building

SUPPORTS UNDER THE ERDF CO-FUNDED MICROENTERPRISE THEME (1)

1. Maximum capital grant of 50% of eligible fixed assets or €75,000 subject to the portion in excess of 35% being in refundable form.

1. Priming Grant of 50% of eligible investment up to €150,000. Grants in excess of €80,000 shall be exceptional. A maximum employment grant of €15,000 per full time job created

2000-2006 ROP 2007-2013 ROP

SUPPORTS UNDER THE ERDF CO-FUNDED MICROENTERPRISE THEME (2)

2. Equity Investment through the purchase of shares subject to normal criteria subject to an overall limit of €75,000

3. Employment grants of €7,500 per job subject to a limit of 10 jobs

2. Business Expansion Grant of 50% of eligible investment up to €150,000. Grants in excess of €80,000 shall be exceptional. A maximum employment grant of €15,000 per full time job created

2000-2006 ROP 2007-2013 ROP

SUPPORTS UNDER THE ERDF CO-FUNDED MICROENTERPRISE THEME (3)

4. 50% of the cost of feasibility study subject to a maximum of €5,100 per study

5. Other financial supports as appropriate, to assist with marketing, mentoring and e- business

6. Training up to 100%, subject to proportionate contribution as deemed appropriate

3. Feasibility/Innovation Grant of 60% of the investment or €20,000 whichever is the lesser

4. 30% of all grants to be in refundable form – to be determined by each CEB

5. Other financial supports as appropriate, to assist with marketing, mentoring and e-business

6. Training up to 100%, subject to proportionate contribution as deemed appropriate

2000-2006 ROP 2007-2013 ROP

INDICATORS 2007-2013

Class Indicator Baseline Final Target

Cum Out-turn to Dec. 2012

Output No of micro-enterprises assisted

4,029 8,029 6,973

No of training days provided

74,294 249,294 256,078

Result No of training recipients

57,159 141,159 167,156

Gross FTE Jobs Created

0 3,124 2,677.5

PROJECT SELECTION, MONITORING AND REPORTING Deadweight and displacement - part of

consciousness of selection committees Local boards – project approval based on criteria

set by EI and approved at monitoring committee CEBs conduct an Annual Employment and

Capability Development Survey Results transmitted to Enterprise Ireland via

the PMS system

SOME IRISH POLICY INITIATIVES TO SUPPORT SMES Access to Credit Credit Guarantee Scheme October 2012

assist viable SMEs on the margins of commercial lending decisions in accessing credit

75% State guarantee to banks against losses on qualifying loans to micro, small and medium enterprises with growth and job creation potential

to €150 million of additional lending to eligible SMEs per annum

SOME IRISH POLICY INITIATIVES TO SUPPORT SMES Microenterprise Loan Fund September 2012

to improve access to credit for microenterprises loans for up to €25,000, available to start-up,

newly established, or growing microenterprises with viable business propositions, that do not meet the conventional risk criteria applied by banks

Credit Review Office was set up in 2009 to help SMEs or farm borrowers who have had an application for credit of up to €500K declined or reduced

May 2013 the Government announced the establishment of 31 LEOs (Local Enterprise Offices) to replace the existing 35 County and City Enterprise Boards (CEBs)

EX-ANTE EVALUATIONS 2007-2013 FGS Consulting – S&E ROP

Productivity: The Ex-ante Evaluators recommended that a greater emphasis be given to recent productivity trends in the region, especially of indigenous firms clear need to assist job creation and productivity growth in

indigenous firms promote entrepreneurship, encouraging technological

adaptation by small businesses and the establishment and expansion of new firms which are innovative and knowledge-based

stimulate and promote knowledge transfer and promote innovation in the SME sector in urban and rural areas

fund the activities of CEBs - financial, mentoring, and capacity building supports to SME’s in each county

STUDIES/REPORTS/APPROACH (1)

New Challenges New Opportunities: Report of the Border, Midland and Western Regional Foresight exercise 2005-2025

Enterprise Strategy Report 2004The Role of the Enterprise Development Agencies The Boards of Forfás, IDA Ireland and Enterprise Ireland

should have a number of directors in common, and in particular a common Chairperson

The City and County Enterprise Boards (CEBs) should be integrated into the mainstream enterprise development system by establishing a Central Coordination Unit in Enterprise Ireland. This unit should provide central direction, technical support, shared services and quality assurance, to further enhance the effectiveness, efficiency (Department of Enterprise, Trade and Employment

STUDIES/REPORTS/APPROACH (2)

Review of the role of County and City Enterprise Boards 2003 (Fitzpatrick Associates) Recommendations across a range of factors

including: Specific Objectives; Instruments; Institutional

Arrangements; Local and National level structures

Praxis Ongoing and progressive Changes made in programmes objective and in

policy direction as a result of evaluations but also on foot of ongoing internal assessments

2014 – 2020 PROGRAMME PERIOD

Needs Analysis – near finalisation Ex-ante evaluators – contract to be awarded

shortly Programme planning underway

NEEDS ANALYSIS

Recommendations for enhancing the competitiveness of SMEs Continue to strongly support the case for investment

in Ireland’s SMEs Justification to continue to build upon the successful

track record of the City and County Enterprise Boards, albeit via a new institutional arrangement as part of the Local Enterprise Offices within local government

Clear rationale to support entrepreneurship initiatives for emerging technology-based start-ups through initiatives such as the New Frontiers Programme, leveraging the resources of the Institute’s Incubation Centres

Increased potential for youth and female entrepreneurship must also be recognised

Thank You Southern & Eastern Regional Assembly

Assembly House,O’Connell Street,Waterford.T. + 353 51 860700E. dbrennan@seregassembly.ieW.www.seregassembly.ie Follow us on Facebook and Twitter