Government agrees measures to support SMEs

• reopening the Increased Cost of Business (ICOB) Scheme for another 14 days
• introducing a second payment of ICOB for businesses in the retail and hospitality sectors
• doubling the Innovation Grant Scheme to €10,000
• increasing the maximum amount available under the Energy Efficiency Grant Scheme to €10,000 and reducing the business contribution rate from 50% to 25%
• widening the eligibility for the Trading Online Voucher, extending it to all sectors up to 50 employees, modernise eligible expenditure and doubling the grant to €5,000
• increasing the lending limit for Microfinance Ireland loans to €50,000 from €25,000
• widening the eligibility for the Digital for Business Consultancy Scheme and extending it to all sectors with up to 50 employees
• launching a new ‘Ireland’s Best Entrepreneur Programme’ to encourage entrepreneurship and startups in under-represented groups
• launching the new online National Enterprise Hub for SMEs to access information on the wide range of government business supports
• implementing an enhanced ‘SME Test’ by the Department of Enterprise, Trade and Employment in conjunction with the Department of the Taoiseach
• review ESRI research on the impact of Statutory Sick Leave before deciding on any further increases
• review the proposed Roadmap for Increasing Minimum Annual Remuneration Thresholds for Employment Permits

Our small businesses are the backbone of our local economy and provide much valued employment in communities across the country.

These measures represent agreement from across government on the need to support our SMEs in the face of rising costs – while also balancing critical progress in terms of working conditions.

Small and medium sized businesses are vital to Ireland’s success and are central to our ability to build a broad-based and successful economy and wider society.

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It has been a priority of Taoiseach Simon Harris to support our small businesses since he took office, and I am glad today that we have delivered on this.

While there has been some moderation in the rate of wholesale price inflation, and measures to date have helped many vulnerable but viable firms, these new measures will help SME long-term financial sustainability, and aid them to grow and thrive so as to sustain good jobs into the future.

I continue to advocate on behalf of small businesses and traders up and down this country, and I look forward to Budget 2025 to highlight further government commitment to this critical sector.

The package of measures being announced today is fair and balanced, and underlines the recognition across government of the crucial role SMEs play in our economy and in communities across Ireland.

As Minister for Finance, I very much welcome the progress that has been made in relation to the Tax Debt Warehouse scheme. This has been a vital support to viable businesses during the dark days of the pandemic and in the period since.

I would also like to thank the Revenue Commissioners for the positive and proactive approach they have taken to engaging with firms. The success of the scheme is a testament to the collaborative approach taken by a broad range of stakeholders and demonstrates the government’s commitment to supporting our business and enterprise sector.

Small and medium businesses are the lifeblood of towns and villages the length and breadth of the country, and play an essential role in maintaining communities in rural areas.

These business owners have shown remarkable resilience over the past number of years in facing the successive challenges of COVID, energy costs and inflation. This package of government supports will play a vital role in bolstering that resilience and will enable these businesses to focus on what they do best.

Minister of State, Anne Rabbitte said:

Small and medium-sized enterprises (SMEs) are the backbone of all ourcommunities. They play a crucial role in the economic and social well-being of a local area, and their importance goes far beyond just providing goods and services.

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Here’s a closer look at why SMEs are so important:

• Job Creation: SMEs are major job creators. They tend to be more flexible and adaptable than large corporations, allowing them to hire and grow quickly. This is especially important in providing opportunities for local residents and reducing unemployment.

• Economic Diversity: SMEs bring a diversity of businesses and services to a community. This caters to a wider range of consumer needs and fosters a more vibrant local economy, less reliant on a single industry.

• Community Engagement: SMEs are often owned and operated by people who live in the community. This fosters a strong sense of local ownership and investment. Small business owners are more likely to be involved in community events, sponsor local teams, and donate to charities, further strengthening the social fabric.

• Personalised Service: SMEs tend to provide a more personalised customer service experience compared to large corporations. This can build customer loyalty and create a sense of community around the business.

• Innovation and Adaptability: Being smaller and nimbler, SMEs are often at the forefront of innovation. They can adapt quickly to changing market trends and consumer preferences, bringing fresh ideas and solutions to the community.

• Supporting Local Suppliers: SMEs often source their supplies and services from other local businesses. This creates a multiplier effect, where money spent at one business ripples through the community, benefiting other local enterprises.

SMEs are essential for the health and prosperity of communities, creating jobs, foster diversity, and contributing to a strong social fabric. By supporting local SMEs, we can ensure that our communities continue to thrive.