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’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. [email protected] Follow us on Facebook and Twitter