REGIONAL DEVELOPMENT PROGRAMMES IN IRELAND MICROENTERPRISE SUPPORT PROGRAMMES

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 POLICYMAKING IN 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 2011 � Unified 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 reporting � align 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) NATIONAL SECTOR SPECIFIC: DEVELOPMENT OF WWW. BIM. IE THE FISHERIES AND SEA -FOOD SECTOR DEVELOPMENT OF WWW. BORDBIA. IE THE FOOD INDUSTRY REGIONAL/LOCAL AGENCIES INDIGENO US WWW. SHANNON -DEV. IE INDUSTRY ENTERPRISE DEVELOPMENT IN MID-WEST REGION ECONOMIC WWW. UDARAS. IE DEVELOPMENT IN IRISH SPEAKING AREAS CITY/COUNT Y ENTERPRISE SUPPORT FOR BOARDS MICROENTERPRISE (-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 highlevel 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 microenterprises (<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-FUNDEDM ICROENTERPRISE 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 THEE RDF 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 COFUNDED 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) 2000 -2006 ROP 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. 2007 -2013 ROP 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

SUPPORTS UNDER THE ERDF CO-FUNDED MICROENTERPRISE THEME (2) 2000 -2006 ROP 2007 -2013 ROP 2. Equity Investment through 2. Business Expansion Grant 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 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

SUPPORTS UNDER THE ERDF CO-FUNDED MICROENTERPRISE THEME (3) 2000 -2006 ROP 2007 -2013 ROP 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

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 No of training recipients 57, 159 141, 159 167, 156 Gross FTE Jobs Created 0 3, 124 2, 677. 5 Result

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 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 € 500 K 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 Western Regional Foresight exercise 2005 -2025 Enterprise Strategy Report 2004 The Role of the Enterprise Development Agencies The Boards of Forfás, IDA Ireland 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 House, O’Connell Street, Waterford. T. + 353 51 860700 E. dbrennan@seregassembly. ie W. www. seregassembly. ie Follow us on Facebook and Twitter