Report of the SME Taskforce - Minister for Enterprise ...
Transcript of Report of the SME Taskforce - Minister for Enterprise ...
Report of the SME Taskforce: National SME and Entrepreneurship Growth Plan An ambitious long-term strategic blueprint for Irish SMEs and entrepreneurs
January 2021
Contents Foreword 1
Introduction 3
List of deliverables 8
Entrepreneurship 13
Productivity, Digitalisation and Competitiveness 26
Internationalisation 33
Clustering and Networks 40
Climate Change: challenges and opportunities for the SME sector 46
Appendices 48
Appendix1:Tablesofrecommendationsandactions 48
Appendix 2: Members of the Taskforce and Subgroups 70
Appendix 3: Submissions Received 72
“We look forward to working with the Implementation Group to bring this work forward, in reinforcing the role of SMEs as the backbone of our economy, in every city, town and village across the country.”
Leo Varadkar TD, Tánaiste and Minister for Enterprise, Trade and Employment
Damien English TD, Minister of State for Business, Employment and Retail
Robert Troy TD, MinisterofStateforTradePromotion, DigitalandCompanyRegulation
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Foreword The publication of this SME and Entrepreneurship Growth Plan, as designed by the SME Taskforce, represents a significant milestone in the advancement of SME and entrepreneurship policy in Ireland. In late 2019, the OECD finalised its Review of SME and Entrepreneurship Policy in Ireland, following an extensive 18-month process of research, analysis, and consultation with a wide range of stakeholders.
TheOECDReviewprovidedahugelyinformative,objective,anddeeply-researchedevidencebaseforthedevelopmentofanationalstrategicdocumentonSME and entrepreneurship policy. The Programme for Government – Our Shared Future, in recognising the central role that will be played by Ireland’s small and medium enterprises in determining the strength of the recovery for the economy and for jobs from the shock of the impact of the Coronavirus pandemic, committedtotheestablishmentofanSMETaskforceand to the delivery by the Taskforce of this SME and Entrepreneurship Growth Plan,tomapoutanambitiouslong-termstrategicblueprintforIrishSMEsandentrepreneurs,tobefinalisedinconjunctionwith the National Economic Plan.
FromitsappointmentinlateSeptember,toitsfinalPlenarymeetinginearlyDecember,theTaskforceanditsfourconstituentSubgroupsworkedwithpace,focusandapplicationtoproducethestrategicvision that is contained in this Growth Plan. As the Ministerial team in the Department of Enterprise, TradeandEmployment,weconveyourappreciationandgratitudetoalloftheMembersoftheTaskforce,andtheadditionalparticipantswhocontributedontheSubgroups,fortheirdedicationandthetimeandthought that they devoted to this valuable work, in everycaseinadditiontotheirownrespectivedayjobs,runningtheirowncompaniesandorganisationsinthemidstofasignificanteconomiccrisis.
We express a special acknowledgement to the Chairs of the four Subgroups – Kevin Buckley, Thia Hennessy, Helen Ryan, and Oliver Tattan – who drovethedetailedworkinformulatingthethematicchapters of this document.Not alone is it hugely impressive that a Growth Plan of such scope and foresight has been brought together in such a focused timeframe,butitisalsoremarkablethattheentiredeliberationsoftheTaskforceandSubgroupswereconductedonline,duetothepandemicrestrictions.
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InthetimeframethattheTaskforcehashadtoproduce this Growth Plan,ithasprioritisedtheframing of the overall strategic vision of the way forward, informed primarily by the experience and expertiseoftheMembers,whothemselvesrepresentsmallandmediumsizedfirms,andentrepreneursontheground,atdifferentstagesofthedevelopmentand export journeys. It has not also been possible, in thistargetedtimeframe,ineverycasetocarryoutthedetailedanalysis,andcost-benefitexercises,whichboth the Taskforce, and we as the Ministerial team, acknowledge will be required to further develop some aspects of this vision.
Accordingly, this Growth Plan in its current form does not represent Government Policy. In January 2021, we will establish an SME and Entrepreneurship Implementation Group to take the vision of this Growth Planforward.TheImplementationGroupwillcontainanappropriatedegreeofcontinuityfrom the membership of the SME Taskforce, and it will also include the Government Departments and State agencies who have the capability to move the relevantrecommendationstowardsimplementation.
This document provides us with an informed strategic insight,fromtheperspectiveofenterprise,totheforemostchallengesandopportunitiesfacingSMEowners and entrepreneurs in the overall business environment, as we move towards the recovery phase fromthecurrentcrisis,andasweseektooptimisetheconditionsandresourcesavailabletoIrishsmalland medium businesses and to entrepreneurs, for the longer term. It sets out this vision across the crucialareasofproductivity,ofdigitalisation,ofcompetitiveness,ofinternationalisationtoenableusto maximise our exports, of networks and clustering to allow us to harness the combined strengths of our enterprise base, and vitally, of entrepreneurship itself.
We look forward to working with the Implementation Group to bring this work forward, in reinforcing the role of SMEs as the backbone of our economy, in every city, town and village across the country.
Leo Varadkar TD, Tánaiste and Minister for Enterprise, Trade and Employment
Damien English TD, Minister of State for Business, Employment and Retail
Robert Troy TD, MinisterofStateforTradePromotion, DigitalandCompanyRegulation
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Introduction Summary In a period of two months, the SME Taskforce has delivered on its mandate under the Programme for Government – to design a National SME Growth Plan that will map out an ambitious long-term strategic blueprint for Irish SMEs beyond COVID-19. This was an ambitious task, and an ambitious timeframe, and it has produced an ambitious document containing an ambitious vision.
TheProgrammeforGovernmentcommitted that the SME Growth Plan will move forward inconjunctionwiththeNationalEconomicPlan,which is being launched in the coming weeks.
The Growth Plan contains a broad range of recommendations,takingtheirstructurefrom the policy areas which were examined in detail by thefourconstituentSubgroupsoftheTaskforce–Entrepreneurship;Productivity,Digitalisation,andCompetitiveness;Internationalisation;andNetworksand Clustering.
Someoftherecommendationscanbeprogressedby the Department of Enterprise, Trade and Employment,andmanywillrequireoperationalinput and further detailed design by the enterprise agencies, including those under the aegis of DETE andalsootherDepartments.Somerecommendationsinvolve policy areas that are under the lead responsibility of other Departments, for example thosedealingwithtaxandeducationissues.
ToensurethattheGrowthPlancontinuestomoveforward,includinginconjunctionwiththeNationalEconomicPlan,andtofacilitatethefurtherdetailed analysis which is appropriate for many oftherecommendationsinthecontextoftheirimplementation,andwhichhasnotbeenpossibleintherequiredlevelofdetailintheambitioustimeframeaccorded to the SME Taskforce, Government will now move to establish an SME and Entrepreneurship ImplementationGroup.
TheSMEandEntrepreneurshipImplementationGroup will comprise membership which both ensures anappropriatedegreeofcontinuityfromtheSMETaskforce,andalsoincludesrepresentationfromthe appropriate Government Departments and agencieswithpolicyandoperationalresponsibilityand capability to progress and deliver upon the recommendations.Inthecaseofsomeoftheproposals, this task will involve further analysis of the most appropriate manner of taking forward individual recommendations.
TheSMEandEntrepreneurshipImplementationGroupwillcontinuetohaveaPlenarywhichwillbechaired at Ministerial level, and which will meet for thefirsttimeearlyinQ1of2021.
The SME Taskforce and the SME and Entrepreneurship Growth Plan – Background and ContextThe Programme for Government – Our Shared Future recognises the central role that will be played by Ireland’s small and medium enterprises in determining the strength of the recovery for the economy and for jobs from the shock of the impact of the Coronavirus pandemic. The Programme acknowledges that “central to our recovery will be our SME community. They are the backbone of our economy and support so many jobs across the country”
TheProgrammeforGovernmentcommittedtothe establishment of an SME Taskforce, to design aNationalSMEGrowthPlanthatwillmapoutanambitiouslong-termstrategicblueprintbeyondCOVID-19.
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The members of the SME Taskforce were appointed by An Tánaiste, Leo Varadkar T.D. in September 2020,andtheTaskforcehelditsfirstmeetingon25September 2020, chaired by An Tánaiste, and with the participationofMinisterofStateDamienEnglishT.D.and Minister of State Robert Troy T.D. A full list of the members of the Taskforce is included at Appendix 2.
FollowingtheinitialPlenarymeeting,fourdedicatedsubgroups of the Taskforce were established, to considerandexamineindetailthespecificareasof:
(a) Entrepreneurship–ChairedbyOliverTattan(b) Productivity,Digitalisationand
Competitiveness–ChairedbyThiaHennessy(c) Internationalisation–ChairedbyHelenRyan(d) Clustering and Networks – Chaired
by Kevin Buckley
Thefoursubgroupsheldacombinedtotalof18meetingsduringOctoberandNovember2020.The Taskforce also met in Plenary format on three further occasions, on 16 October, 11 November, and 3 December 2020, making a total of four Plenary meetings.Afulllistofthemembersofthefoursubgroups is also included at Appendix 2.
OECD Review of SME and Entrepreneurship Policy in Ireland The work of the SME Taskforce was informed by the comprehensive OECD Review of SME and Entrepreneurship Policy in Ireland,finalisedinOctober2019,whichprovidedahugelyinformative,objective,anddeeply-researchedevidencebasefortheworkondeveloping the SME and Entrepreneurship Growth Plan. At the outset of its work, the Taskforce heard a presentationfromJonathanPotteroftheOECDonthefindingsoftheReview,atitsfirstPlenarymeetingon25September2020.
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EU SME Strategy TheNationalSMEandEntrepreneurshipGrowthPlanwas also informed by the European Commission’s recent SME Strategy for a Sustainable and Digital Europe, which was adopted in March 2020.
TheEUSMEStrategyputsforwardactionsbased on three pillars:
• Capacity-buildingandsupportforthetransition tosustainabilityanddigitalisation;
• Reducing regulatory burden and improving market access;
• Improvingaccesstofinancing.
TheTaskforcealsoheardapresentation ontheSMEpolicycontextatEUlevelfromKristinSchreiber of DG Grow of the European Commission, atitsinitialPlenarymeetingon25September2020. The Department of Enterprise, Trade and EmploymentwillcontinuetoengageactivelywiththeEuropean Commission to ensure alignment between thepolicyobjectivesarisingintheSMEGrowthPlan,and EU SME Policy.
The Four Subgroups of the SME Taskforce – Policy Context
Entrepreneurship
The importance of Entrepreneurship to Irish society is well documented, not only in economic and employmenttermsbutalsoincreatingaresilient,innovativecommunitythatservestheIrishconsumer,EUandinternationalmarkets.
FacilitatingEntrepreneurstohaveavoiceincontributingtopolicyandworkingwithpolicymakerswas welcomed by the subgroup, which also felt that this engagement should be given some degree of structured permanence.
The subgroup felt that, as a more diverse group, EntrepreneursoftendonothavethesameinfluenceasthemultinationalandFDIcommunity,buttheircommitment to and permanence in Irish society meritsthattheircontributionbetakenseriously.
Policymakershaveadefiningroleincreatingtheenvironment in which Entrepreneurs can raise capital andreducerisk,findassociateswithrelevantskillsinIreland,benefitfromregulationsthathelpgrowsectorsandeasilyaccessservicesondigitalplatforms.The subgroup was of the view that, in exchange, Entrepreneurs should pay taxes at a rate that should befairlycomparabletothatavailabletomultinationalcorporations,inrecognitionoftheProgrammeforGovernment commitment to ensure that our tax systemremainssupportiveoftheSMEsector.IrishEntrepreneurs should also aim to create employment, serveIrishconsumersandsometimescreateworldbeatinginnovators.AllEntrepreneursshouldhaveaccesstoanadvocatingagencyandshouldhavethe ability to easily supply their products to the publicsector,throughfit-for-purposeprocurementstructures.
Ireland’s approach to Entrepreneurship evolves notjustonthisisland,butinafast-changinggeopoliticalenvironmentincludingBrexit,theriseofChina,andevolvingUSinfluence.TheroleoftheEuropean, and by extension the Irish Entrepreneur, is very likely to increase in importance as local champions become more important contributors to developing a resilient society.
Productivity, Digitalisation and Competitiveness
IrishSMEsfacechallengesinboostingproductivity,rapidlyadoptingdigitalisationandactivelypursuinginnovationtoincreasecompetitiveness.OECDresearch suggests that these challenges are compounded by low levels of human capital, poor ratesofdigitalisation,lowlevelsofinvestmentin research and development and low levels of capitalisation.ThroughtheworkofthesubgroupresponsibleforPillar2,asetofrecommendationshavebeendevelopedtoenableSMEstobetterovercome these challenges.
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The subgroup acknowledge that a broad range of supports are available to the Irish SME sector but that theseareoftendifficulttonavigateandthatsomeSMEs,duetotheirsizeorexportorientation,arenotrepresented by any State Agency or Public Body. It is recommended that government support for SMEs bereviewedtoensurebettercoverageandthatanSMEportal,whichappliesthe“only-once”principle,is developed to streamline access to and promote awarenessofthevarioussupportsforeducation,innovationanddigitalisation.Furthermore,the‘SMETest’,whichanalysestheimplicationsoflegislationandregulationsforSMEs,shouldbeconsistentlyimplemented by all Government Departments.
To address poor levels of human capital, the subgroup recommendsthatincentivesandtaxcreditsbeusedtosupportparticipationinbasicbusinesseducation,aswellasadvancedmanagementtrainingandlife-longlearning.Abroaderdefinitionofinnovationshouldberecognisedandincentivisedtoencourageinvestmentininnovationofbusinessprocessesandpractices.TheestablishmentofacompetitiveschemeforSMEstoundertakeendtoendtransformativedigitalisationisproposed.SMEsneedtobesupportedtobecomemorefinanciallyresilient,tothisendareviewoftheeffectivenessofthevariousState-ledfinancialsupportsschemeswhichprovideaccesstofinanceforSMEsisrequired.TheworkoftheNCCissupported and it is important to remain focussed on maintaining businesses costs at a sustainable level.
Internationalisation
The recent OECD Review of SME and Entrepreneurship Policy in Ireland highlighted that Irelandhasoneofthelowestratiosofexporterstototal enterprise numbers in the EU coupled with an over reliance within our exporter base on a small number of larger companies.
Asasmalleconomy,thereisaneedtomakeexportingpart of the DNA of our micro, small and medium sized enterprises. Enabling more enterprises across allregionstotakeadvantageofexportopportunitieswill build resilience in our enterprise base and drive economicgrowandemploymentpotential.
Policyinthisareamustlooktoamoreholisticapproachthatcancultivatetheexportingambitionof all companies and bring them on the exporter journey at an early stage. The stages of the export journeymustbeseamlessandinterventionsintensiveandbespoke.Thereshouldbeanoverlayofsector-specificnetworksandsupportsthatwouldprovidepractical,focusedsectoralguidance.Thereneedstobe one agency responsible and resourced to drive a stepchangeininternationalisation.
Clustering and Networks
ThetaskoftheClusteringandNetworkssub-groupwastoidentifymeasuresthatwouldincreasetheeffectivenessofclustersandnetworksinIreland.As evidenced in other countries, such as Germany, increasingefficiencyandawarenessofrelevantclusters and networks will lead to increased collaborationatsectoralandregionallevelbetweenSMEs,largecompaniesandresearchinstitutions,leveraging greater economies of scale and enhancing the skills levels of SMEs than would be achieved byenterprisesoperatingbythemselves.Overall,increasing the visibility of and engagement with, and utilisationof,clusteringandnetworkstructureswilllead to a strengthened SME and entrepreneurship base. In the course of its work, the subgroup reviewed therecommendationsfromtheOECDstudyonSMEand Entrepreneurship Policy in Ireland and drew on thevarietyofexperienceandexpertisefromthemembers of the subgroup.
Climate Action and SME Policy
TheincreasingcentralityofclimateactionwillbeanessentialinfluenceonthedevelopmentofSMEpolicyin the coming years. The Taskforce recognises the influencethattheParisAgreement,theEUGreenDeal, and Government’s climate commitments will have on the business environment, not only for small and medium enterprises themselves, but also for the global supply chains that they feed into and participatein,andalsofortheregulatoryenvironmentthatgovernstheiroperation.
TheTaskforceheardapresentationfrom JosephCumminsoftheClimateActionUnitintheDepartment of Enterprise, Trade and Employment at its second Plenary on 16 October 2020.
This SME and Entrepreneurship Growth Plan contains a dedicated chapter on the climate policy context for Irish SMEs.
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Next Steps – Implementation, further analysis, and SME and Entrepreneurship Implementation Group
The SME and Entrepreneurship Growth Plan containsabroadrangeofrecommendations,taking their structure from the policy areas which wereexaminedindetailbythesefourconstituentSubgroups of the Taskforce – Entrepreneurship; Productivity,Digitalisation,andCompetitiveness;Internationalisation;andNetworksandClustering.
Someoftherecommendationscanbeprogressedby the Department of Enterprise, Trade and Employment,andmanywillrequireoperationalinputand further detailed design involving the enterprise agencies, including those under the aegis of DETE and also agencies under the responsibility of other Departments.Somerecommendationsinvolvepolicyareas that are under the lead responsibility of other Departments, for example those concerning tax and educationissues.
Itisclearthatanumberoftherecommendationswillbenefitfrommoredetailedanalysis,includingcost-benefitanalysisastoalternativepotentialoptionsforimplementation.Thepriorityduringtheconcentratedperiod of a number of weeks, as envisaged by the Programme for Government, for the Taskforce to produce the Growth Plan, was to develop the vision thathasbeenarticulatedintherecommendations.Thefurtherdetailedanalysiswhichwillbeessentialtotakingthisvisionforwardinpractice,willrequiremoretime,engagement,anddetailedwork,thatwassimplynotpossibleduringthisinitialphaseofanumber of weeks.
To ensure that the substance and vision of the GrowthPlancontinuestomoveforward,includinginconjunctionwiththeNationalEconomicPlan,andto facilitate the further detailed analysis which is appropriateformanyoftherecommendationsinthecontextoftheirimplementation,andwhichhasnotbeen possible in the required level of detail in the ambitioustimeframeaccordedtotheSMETaskforce,Government will now move to establish an SME and EntrepreneurshipImplementationGroup.
TheSMEandEntrepreneurshipImplementationGroup will comprise membership which both ensures anappropriatedegreeofcontinuityfromtheSMETaskforce,andalsoincludesrepresentationfromtheappropriate Government Departments and agencies withoperationalresponsibilityandcapabilitytoprogressanddeliverupontherecommendations.Inthecaseofsomerecommendations,thistask will involve further analysis of the most appropriate manner of taking forward individual recommendations.
TheSMEandEntrepreneurshipImplementationGroupwillcontinuetohaveaPlenarywhichwillbechaired at Ministerial level, and which will meet every quarter. It will also comprise a number of appropriate Subgroupswhichwillhavethenecessaryexpertiseandrepresentationtoprogresstherealisationofthe vision that is set out in this Growth Plan and its recommendations.
TheSMEandEntrepreneurshipImplementationGroup will be appointed in January 2021, and will holditsfirstPlenarymeetinginQ1of2021.
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List of deliverables Short-term deliverables (less than a year)
Internationalisation Mapthestages,andthekeyrequirementsforeachstage,ofthe‘ExporterJourney’ for Micro, Small and Medium size enterprises. Develop a Scorecard to enable companies understand their readiness to export or increase export intensity.
Productivity, Digitalisation and Competitiveness
Establishment of a Single SME Portal.
AllGovernmentDepartmentsutilisingSMETest.
Onlinebusinessproductivitydiagnosticstool.
Existingdigitalisationschemesextendedandmadeavailabletoindigenous, non-exportingSMEs.
PromotetheuseoftheISO56000InnovationManagementStandards.
ImprovedawarenessandunderstandingofthecurrentState-ledfinancial supports review.
Networks and Clustering
PerformananalysisofexistingnetworkandclusteringprogrammesinIreland,identifyinggoodpracticeandgaps,inordertoinformthedevelopmentofanationalnetworkandclusterprogramme.
Createacentralcommunicationplatformthatoffersanoverviewofthenetworkandclusterlandscape in Ireland and increases the visibility of network and cluster assistance that is available.
Entrepreneurship DramaticallyreducethecostofEL&PLinsuranceviameasurestargeted at the cost of claims and the duty of care. Encouragegreatercompetitionbyseekingoutadditionalmultinationalunderwriters to supply the Irish market. Developbestpracticehealth&safetytrainingforSMEsviaSkillnet.
Examinewhattaxationmeasures(e.g.rolloverrelief,reducedCGT) wouldbenefitentrepreneurshipandSMEgrowth.
Annual Entrepreneurship Review, which would assemble the relevant indicators toinformthedeliberationsoftheNationalEntrepreneurshipForumtoreviewpolicy and assess progress towards a broad range of relevant targets. Createastructurewherebytheperspectivesoftheentrepreneur/SMEcommunity aresystematicallyincludedinpolicydiscussionsanddecisionmaking.
Clearcommunicationofexistingeducation,traininganddevelopmentsupportsavailable for entrepreneurs and SME owners. Enhancementofcurrenteducation,training,anddevelopmentalofferingsasappropriate tofillidentifiedgaps.Establishspecificmicro-credentialsforentrepreneursinfinance,digitalisation, human resources, etc.
Introduce a reduced CGT rate (e.g. 20%) for founders, private investors, VCsorAngelInvestorswhoinvestinnon-propertySMEs1. Allow CGT losses for lossmaking EIIS investments 2. OfferfullCGTreliefonprofitsonEIISinvestmentsmadeforayear.3. Change EIIS structure to allow VC investments via Limited Partnerships
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Medium-term deliverables (1-3 years)
Internationalisation Developandimplementaholisticapproachtoprogrammedesignanddelivery,andfinancialsupports,atbothcompanyandnationallevelthatensuresaclearpathwayforcurrentandpotentialexportingSMEsofallsizes,includingmicros,throughallstagesofthejourneytoexporter.
Supportcompaniesinaholisticwaytobuildthecapabilityandcapacitytomeet the key requirements at each stage, by combining all supports (current and new) intooneofferingatregionallevelforeachstageoftheJourney.
ConsolidatetheinformationontheExportJourneyandthesupportsintoadedicatedExporters’ Portal for SMEs.
DevelopsectoralExportGuidesthataddressinternationalisationchallenges, supported by relevant case studies.
Developsector-specificnetworksandcommunitiestoenabledatagathering, sharedlearningandmentoringforexporting.
UsetheExporters’PortaltoincreaseknowledgeofchallengesforspecificsectorsandmarketsanddirectSMEstospecificsourcesofsupport,suchasnetworksandinformation on technology.
Develop tailored supports for digital exports as opposed to physical exports.
Explorenewwaystomotivate,incentiviseandde-risktheExporterJourneyforSMEs. These include: • Facilitatingmoretrademissions(includingvirtualtrademissions)withindustrysectorgroupstoenablepeer-to-peerlearning.
• Harnessandsharethelearningfrombusinesseschangingtheirexportstrategies following Brexit.
• Optionsforfinancialde-riskingtheexportjourneyforSMEs,includingthroughtaxdeductionsoneligibleexpensesforinternationalmarketexpansionandinvestmentdevelopmentactivities
• IntroduceaState-backedexportcreditinsurancescheme• EstablishingdedicatedinvestmentandfinancingfacilitiesforallSMEswithexportambitionswithtaxbreakstoincentiviseinvestmentsimilartothoseunderthecurrentEmploymentIncentiveandInvestmentScheme;
• AlowerrateofCGTonpartialexitslinkedtoexternalinvestment• Ensure that programmes use SME performance data to allow them toadaptandimprovedecision-makingbyfutureSMEs.
• FullyexploitthepotentialforcompaniesthroughtheEuropeanEnterpriseNetwork(EEN)where appropriate.
Considerallroutestocreatingexporters,including1. ContinuedfocusonexploitingsynergieswithMNCs2. FacilitatethoseexportingindirectthroughMNC’stoexpandtoincludedirectexporting3. ImportsubstitutionasameansofenablingexportingSMEs4.Newwaysoffacilitatingpartneringwithexternalbodiessuchastradeorganisations
EncouragetheuseofstandardsandcertificationbySMEsofallsizes,asameansofincreasingqualitymanagementandinnovationpractices,andfacilitatingtradeacrossborders.
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Productivity, Digitalisation and Competitiveness
Animprovedgovernancemodelwhichensuresbetterenterpriseagencycoverage for all SMEs of all sizes and across all sectors.
RecommendationsofExpertGrouponFutureSkillsNeedsintheir‘LeadingtheWay’reportimplemented as priority, supported by tax credit scheme and a management skills training and certificationprogramme.
PublicationofNationalStrategyonflexibleandremoteworking.
Implementationanduptakeofacompetitivedigitaltransformationscheme.
QualificationrequirementsoftheR&Dtaxcreditinclude‘processinnovation’ and‘organisationinnovation’.
ImprovedfinancialresilienceamongSMEs.
ReviewofcurrentState-ledfinancialsupportschemes.
Evaluationoftheeffectivenessofexistingtaxincentiveschemesaimedatincreasingequityinvestment.
PublicationofSMECostIndex.
ImplementationofNationalCompetitivenessCouncilrecommendationswhichrelatetoSMEs.
LevelplayingfieldbetweenSMEsandMNCstoattractandretainstaff.
Networks and Clustering
Establish a government programme that supports and provides funding to formal business networksandclustermanagementorganisationsacrossIrelandwhichwillestablishstandardqualitycriteriaandstandardisationoffundingstructures,whilealsoincreasingthevisibilityofexistingnetworksandclustersandState-fundedprogrammes.
Createacentralcommunicationplatformthatoffersanoverviewofthenetwork and cluster landscape in Ireland and increases the visibility of network and cluster assistance that is available.
Helpprofessionaliseclustersandnetworkmanagementtoimprovetheeffectivenessoftheirmanagementprocessesinordertoincreasethequalityofservicestheyoffertotheirmembers.
Fundingtobeprovidedtosupportthedevelopmentofa"NationalClimateCluster"ofIrishSMEs,researchinstitutions,largerenterprisesandotherinterestedpartieswhoarefocusedoninnovatingandinternationalisationofproductsandservicesforthelow-carbonglobaleconomy.
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Entrepreneurship • FurtherexaminationofoptionstoincreasecreditoptionsforSMEsandthosestarting new businesses
• Governmentcommitmenttoresourceadditionalmeasures,e.g.attractforeignbankstosetupinIreland,enhanceexistingcreditoptions(MFI,SBCI,etc),createanewStateBusinessBankforSMEs,partnerwithexistinglenderstoprovideStateguaranteedloanstoSMEs,leverageEUfundingoptions(Ecofin,EIB)
• Government commitment to facilitate greater investment by private capital in SMEs
• AnnualReviewProcess,perhapsinvolvingtheNationalCompetitivenessCouncil,DETEandEItoanalyseandmakerecommendationsinrespectofmarketfailureforproductsandservices on which SMEs depend
• Considerationbygovernment,throughDETE,ofcreatingaprocessforattractingEUoperatorstotheIrishmarketinareasofidentifieddeficit,and/orencourageIrishplayers toprovideservicesintheidentifiedsectors
IdentifyhowtheStatecansupportbusinessesthatdonotqualifyforLEO,EIorIDAsupport.
SinglesectoralonlinehubandagencypointforallSMEsupports,informationandentrepreneur/SMEcollaborationunderwhichgeneralandspecificsectoralsupports can be accessed.
Ensure Policy units in Government Departments have the skills to understand and evaluate theemergenceandadoptionofnewtechnologies.
Allstakeholdersaffectedbydraftlegislationordraftsubordinateregulationshouldhavetheopportunitytogivetheirviewsaboutinitiativesandtheevidenceandinformationthatareusedtosupportthem,notonlyatanearlystagewhenpolicyconceptsarenotyetpreciselydefined,butalsolaterwhenmoredetailedprovisionsaredrafted.
• EntrepreneurshipmoduleofferedonallThirdLevelcourses• InternshipplacementprogrammetobeofferedonallThirdLevelcourses
Developmentofa2yearstructuredEntrepreneurshipApprenticeshipbackedbytheState.
• Higherratesofentrepreneurshipbyunder-representedgroups.• AttractIrishcitizensabroadandEuropeancitizenstoIrelandtosetuptheir
entrepreneurial business. • Entrepreneurship Ambassadors.
Simple“BecomeaSupplier”buttontoregisterwithforGovernmentDepartmentsandagencies.
Ensure all Government Departments, agencies and public bodies have a strategic andformallydevelopedprogramfortestingandevaluatingnewtechnologiesandservices.
ProvidesupportsandtrainingtoSMEstoenablethemtocompeteeffectivelyforpublicprocurement contracts.
• Viatherelevantagencies,provideexpertisetoSMEsinrespectofdigitaltoolsthat are available to grow their businesses
• FacilitateSMEtoSMEandBigTechtoSMEcollaborationonhowdigitaltools can help SMEs grow
ServicestoSMEstobedistributedviaestablishedsocialmediaplatforms.
OptionfordigitalsignaturesforallGovernment,agencyandlocalauthoritycontracts.
• IrelandtoleaddraftingandadoptionofEUDirectives• Developlocalenlightenedregulationinstrategicallychosensectors
• Introducethe‘ThinkSmallFirstPrinciple’,whichrequiresSMEs’intereststobetaken into account at a very early stage of policy making
• Ensure Government Departments and agencies adopt measures to avoid placing adisproportionateburdenonsmallbusinesses
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Long-term deliverables (3+ years)
Internationalisation DriveMicroandStart-upcompaniestotakethefirststepsontheExportjourney andcapitaliseonexportopportunities• Enable 3,000 Micro and start up enterprises to become Digital Exporters and to take advantageofexportopportunities,mainlythroughaggressivetargetingbytheLEOs of a new Digital Exporter Voucher scheme which should include advice and support on integratingdigitaltools,digitalskillstrainingsupport,digitalmarketingandofferahighergrant aid percentage
• Provide Digital skills support (people, consultants etc) in the LEOs and build support andpeer-lednetworkstohelpdriveandembedthetransitiontodigital
• Review all current supports to Micro and start up enterprises from EI, LEOs and InterTrade IrelandanddevelopanewholisticoffercombiningallelementsrequiredtostartandbesuccessfulontheExportJourney.Get500existingMicroenterprisesand500HighPotentialStart-UpenterprisesonthatJourney.Reviewallevaluationmodelsavailableandcombinethebestintooneholisticmodel
Get2,000additionalSMEsontheExportJourneyandacceleratetheexportmarketdiversificationof750existingexporters,withasmallnumberofnewholisticoffering(s)inlinewiththeEIEuroZoneStartprogrammeandcomplementedwithbespokeconsultingsupport.Thisoffering(s)shouldreplaceanumberofthesmallerschemescurrentlyavailable.
Identify100HighGrowthExporters(fromthe2,000above)andsupportthemontheExportJourney with an intensive strategic programme, which has a bespoke element, that will build significantcapabilitytodrivedoubledigitexportgrowthfortheSME.
Entrepreneurship Introduce an emphasis on entrepreneurial behaviours such as teamwork, problem solving and risk taking into the Leaving Cert and a move away from learning by rote approach.
• PartnershipwithStrategicEntrepreneurshipAmbassadors–anEUinitiativetocreate a new advisory group of entrepreneurs from across Europe which will play the role of a sounding board
• Creationofaclearstrategytotargetpotentialhighgrowthcompaniesincluding Tech Unicorn companies for advocacy and access to Policymakers
• State investments in emerging unicorns and removal of barriers for growth • EncouragehighpotentialentrepreneursandtheircompaniestoremaindomiciledinIrelandandattractpotentialunicorncreatorstoIrelandfromabroad
Appropriateroll-outofbroadbandand5G
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1. Entrepreneurship The Challenge Entrepreneurs and SMEs are vital to the success of the Irish economy. The 2014 National Policy Statement on Entrepreneurship defined “entrepreneurship” as an individual’s creative capacity to identify an opportunity and pursue it in order to produce new value or economic success. The Policy Statement went on to say that “entrepreneurship is a key element in the health and wellbeing of any thriving economy.” The OECD agree, stating that “SMEs and entrepreneurship are central to Ireland’s challenge of generating a broad-based growth and prosperity”. The continued growth of our economy is highly dependent on entrepreneurs and the SMEs that they create, develop, and grow.
Whilerecognisingthatnotallstart-upsaspire toandachievehighgrowth,start-upsofalltypesshouldbesupportedtomaximisetheirpotential,recognising that the entrepreneurial journey may bedifferentfordifferenttypesofnewbusinesses.
The Overarching Vision for Entrepreneurship:
“Overall, the objective for entrepreneurship is that Ireland will be characterised by a strong entrepreneurial culture, recognised for the innovative quality of its entrepreneurs, and acknowledged by entrepreneurs as a world-class environment in which to start and grow a business. The challenge is to harness to the full the entrepreneurial potential of all those living in Ireland, whether they are establishing a social or commercial enterprise.”
Ireland should invest heavily in nurturing and supportingentrepreneursandstimulatingnewentrepreneurship in an inclusive manner, and in maximisingthepotentialofthebusinessesofallsizesthat they create. The Irish economy and society will betheultimatebeneficiariesfromthisinvestment.
Context
The2019OECDReviewofSMEandEntrepreneurship Policy in Ireland examined the means to strengthen SMEs and entrepreneurship in Ireland.AprimaryrecommendationoftheOECDwastodraftaunifiednationalSMEandentrepreneurshipstrategy document to increase policy visibility and to ensure a coherent approach to managing public resourcesinaneffectiveandefficientmannertomeetstatedobjectivesinrespectofSMEsandentrepreneurship.
The recent Programme for Government sets out that “central to our recovery will be our SME community” and outlined the establishment of SME Growth TaskforcetodesignaNationalSMEGrowthPlanthatwillmapoutanambitiouslong-termstrategicblueprintbeyondCovid-19.
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Entrepreneurship Sub-Group
AspartoftheSMEGrowthTaskforce,fourSub-Groups have been formed, each tasked to look at adifferentaspectofSMEsandentrepreneurshipinIreland,namelyInternationalisation;Clusters&Networks;Productivity,Digitalisation&Competitiveness;andEntrepreneurship.
TheEntrepreneurshipSub-Group,chairedbyOliverTattan,alsoincludedthefollowingmembers:Elizabeth Bowen (SFA); DC Cahalane (Republic of Work); Alison Cowzer (East Coast Bakehouse); Paula Fitzsimons(FitzsimonsConsulting);OonaghO’Hagan(Meagher Pharmacies); Jennifer Melia (Enterprise Ireland);LindaMurray(Play,Activity&LeisureIrelandPALI);andGinaQuin(NCI).
TheSub-Groupmembersattendedanumberof Plenary Sessions of the overall SME Growth Taskforce,aswellasseveralSub-Groupmeetingsconducted by videoconference. Each member oftheSub-GroupprovidedcontributionstowardsafinalSub-GroupReport.ThisReportsetsoutanumberofrecommendationsagreedbytheSub-Group members.
Scope of this Report
ThisReportidentifiesissuesthatareimportant to enable the progress of SMEs and entrepreneurs inIrelandandmakesrecommendationswithkeydeliverables.Eachrecommendationsetsoutbarrierstodelivery,timelinesfordeliveryandproposals formeasuringtherelativesuccessorfailureofeachdeliverable.
RecommendationsunderthisReportcanbedividedintotwocategories:tacticalrecommendationsthatcandeliversubstantialpositiveimpactsrelativelyquickly;andstrategicrecommendationsthatrequireimmediateandongoingattention,butwhichstrivetoyieldenduringshiftsinpolicy.Thesestrategicrecommendationsarepresentedinitalicsbelow. Thetacticalrecommendationsshouldberelativelyeasytorefineandimplement.
Itisenvisagedthatthestrategicrecommendationswillrequirelonger-termcommitmentsfromgovernment and policy makers, as well as representativesoftheentrepreneurcommunity;howeveritishopedthattheywillhaveapositiveeffectformanyyearsaftertheissueofthisReportbyshapingnationalpolicyinareasbeyondgovernment supports that will result in robust, sustainable,continuousimprovementstothebusinessenvironment and make Ireland a great place to do businessforambitiousentrepreneursandSMEs.
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Recommendations to Achieve the Vision
Funding / Financing for Entrepreneurs and SMEs & Improve Competitiveness of Suppliers to SMEs
A key barrier to the start-up and growth of SMEs is access to finance, as well as the competitiveness of some products and services required by SMEs, such as insurance. Improving the funding and supplier market landscape would enable entrepreneurs to start new ventures, start them earlier and scale successful enterprises faster.
Recommendation 1.1
Create a more diverse source of funding for entrepreneurs and SMEs, including credit, hybrid and equity investment.
Action 1.1.1:
FurtherexaminationofoptionstoincreasecreditoptionsforSMEsandthosestartingnewbusinesses.
Action 1.1.2:
Governmentcommitmenttoresourceadditionalmeasures,e.g.attractforeignbankstosetupinIreland,enhanceexistingcreditoptions(MFI,SBCI,etc),createanewStateBusinessBankforSMEs,partnerwithexistinglenderstoprovideStateguaranteedloanstoSMEs,leverageEUfundingoptions(Ecofin,EIB).
Action 1.1.3:
Government commitment to facilitate greater investment by private capital in SMEs.
Recommendation 1.2
Remove the cost and availability of insurance as a barrier to the start-up and growth of SMEs and to the types of businesses that can be established. Review the extent to which there is a systemic market failure problem in Ireland.
Action 1.2.1:
DramaticallyreducethecostofEL&PLinsuranceviameasurestargetedatthecostofclaims and the duty of care.
Action 1.2.2
Encouragegreatercompetitionbyseekingoutadditionalmultinationalunderwriterstosupply the Irish market.
Action 1.2.3:
Developbestpracticehealth&safetytrainingforSMEsviaSkillnet.
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Recommendation 1.3
Address areas of market failure for competitiveness for products and services which are essential to SMEs (noting that some suppliers are leaving the Irish market due to Brexit).
Action 1.3.1:
AnnualReviewProcess,perhapsinvolvingtheNationalCompetitivenessCouncil,DETEandEI(e.g.bywayofinclusionontheagendaoftheongoingNationalEntrepreneurshipForum)toanalyseandmakerecommendationsinrespectofmarketfailureforproductsandservicesonwhichSMEsdepend.
Action 1.3.2:
ConsiderationbyGovernment,throughDETE,ofcreatingaprocessforattractingEUoperatorstotheIrishmarketinareasofidentifieddeficit,and/orencourageIrishplayerstoprovideservicesintheidentifiedsectors, e.g. banking, credit and insurance services for SMEs.
Tax Reform to Grow Investment in New Start-ups and Growing SMEsThe many advantages presented by Ireland’s corporationtaxregimeareoftennotfullyrealisedbyentrepreneursastheirinvolvementisoftenatthe growth part of the business cycle, and not the cashgeneratingstage.Entrepreneurs,andserialentrepreneursinparticular,oftendependonliquidityevents for a return on their investment and as a source of capital for their next round of investments. Ataxationsystemthatsupportsthecreationandgrowthofnewenterprises,andre-investmentofentrepreneurialcapitalinIrishenterprise,iscriticallyimportant to the growth of this sector.
Recommendation 1.4
Change CGT rules to encourage investment in SMEs.
Action 1.4.1:
Introduce a reduced CGT rate (e.g. 20%) for founders, private investors, VCs or Angel Investors whoinvestinnon-propertySMEs.
Recommendation 1.5
Commission of Taxation and role of taxation in promoting entrepreneurship.
Action 1.5.1:
Examinewhattaxationmeasures(e.g.rolloverrelief,reducedCGT)wouldbenefitentrepreneurship and SME growth.
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Recommendation 1.6
Enhance EIIS rules.
Action 1.6.1:
Allow CGT losses for lossmaking EIIS investments.
Action 1.6.2
OfferfullCGTreliefonprofitsonEIISinvestmentsmadeforayear.
Action 1.6.3:
Change EIIS structure to allow VC investments via Limited Partnerships.
Critical Government Supports for SMEs / Government Coordination and Monitoring / Business Information Support Services Irish-ownedbusinessesofscalethatservetheIrishmarket but do not export do not have a dedicated Government agency through which they can access supportoradvocacy.Thesecompaniesareoftensignificantemployersandprovideimportantservicesto Irish society.
Recommendation 1.7
Agency support for large non-exporters.
Action 1.7.1:
IdentifyhowtheStatecansupportbusinessesthatdonotqualifyforLEO,EIorIDAsupport.
Recommendation 1.8
One stop shop for business supports, information and facilitation of collaboration administered sectorally.
Action 1.8.1:
SinglesectoralonlinehubandagencypointforallSMEsupports,informationandentrepreneur/SMEcollaborationunderwhichgeneralandspecificsectoralsupportscanbeaccessed.
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Recommendation 1.9
Establish a National Entrepreneurship Forum as a permanent policy task force to monitor progress of recommendations from the SME Growth Taskforce Report as well as generally toward the review and contribution to a clear set of strategic policy objectives and targets and provide a forum to enable the views and solutions of the entrepreneur community, including investors, to be articulated to policy makers and decision makers.
Action 1.9.1:
AnnualEntrepreneurshipReview,whichwouldassembletherelevantindicatorstoinformthedeliberationsoftheNationalEntrepreneurshipForumtoreviewpolicyandassessprogresstowardsabroadrangeofrelevanttargets.Progresswouldberecognisedandbarrierstoprogressidentified.
Action 1.9.2:
Createastructurewherebytheperspectivesoftheentrepreneur/SMEcommunityaresystematicallyincluded in policy discussions and decision making.
Recommendation 1.10
Introduce the ‘Think Small First Principle’, which requires SMEs’ interests to be taken into account at a very early stage of policy making to avoid placing a disproportionate burden on small businesses.
Action 1.10.1:
Ensure Policy units in Government Departments have the skills to understand and evaluate the emergence andadoptionofnewtechnologies.Allstakeholdersaffectedbydraftlegislationordraftsubordinateregulationshouldhavetheopportunitytogivetheirviewsaboutinitiativesandtheevidenceandinformationthat are used to support them, not only at an early stage when policy concepts are not yet precisely defined,butalsolaterwhenmoredetailedprovisionsaredrafted.TheGovernmentshouldpublishfinaldraftlegislationandthedraftimpactassessmentsbeforetheinitiativeisadopted.
• TheGovernmentshouldmakebetteruseofimpactassessments,whichshouldbeupdatedtoassesstheimpactofalllegislation,includingsubordinateregulation
• TheGovernmentshouldpublishfinaldraftlegislationincludingimpactassessmentsbeforetheBillgoes topre-legislativescrutiny.
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Education for Future and Existing Entrepreneurs Strengtheningtheroleoftheeducationand training system to inform, upskill and provide pathwaystoentrepreneurshiphasbeenidentifiedasan important enabler to delivering increased numbers of entrepreneurs. This includes:
Education system:
Thereissignificantpotentialtodeveloptheeducationsystem so that it encourages entrepreneurial behaviours such as teamwork, problem solving and risk taking whilst enhancing the role of IT and other contemporary STEM subjects on the curriculum.
Apprenticeships:
Apprenticeshipeducationisundergoingsignificantchanges globally, with a move towards professional apprenticeshipswhichbuildonthemorewidelyknownandtraditionalcraftapprenticeships.Since 2016, Ireland has seen an expansion of apprenticeshipsin30newsectors.
Thefieldofentrepreneurshipparticularlylends itselftotheapprenticeshippedagogyanddeliverymode, with the requisite skills learned by the apprenticeworkingwithinanentrepreneurialcompany, shadowing and learning from an entrepreneur, supplemented by academic learning.
Anapprenticeshipforentrepreneurshasthepotentialto make a systemic change in the entrepreneurial landscape in Ireland, enabling aspiring entrepreneurs from diverse backgrounds to succeed, both with their owninnovativeventureandwithinorganisations.
Clear signposting of entrepreneurship training:
SMEsandentrepreneurswouldgreatlybenefitfromclearly signposted access training for relevant skills.
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Recommendation 1.11
School level – reform Leaving Cert.
Action 1.11.1:
Introduce an emphasis on entrepreneurial behaviours such as teamwork, problem solving and risk taking into the Leaving Cert and a move away from learning by rote approach.
Recommendation 1.12
Third level – entrepreneurship education across all courses.
Action 1.12.1:
EntrepreneurshipmoduleofferedonallThirdLevelcourses.
Action 1.12.2:
InternshipplacementprogrammetobeofferedonallThirdLevelcourses.
Recommendation 1.13
Third level – Entrepreneurship Apprenticeship / Internship programmes.
Action 1.13.1:
Developmentofa2-yearstructuredEntrepreneurshipApprenticeshipbackedbytheState.
Recommendation 1.14
Entrepreneur Level – single information source for entrepreneur educational resources and enhancement of educational offerings, including micro-credentials.
Action 1.14.1:
Clearcommunicationofexistingeducation,traininganddevelopmentsupportsavailableforentrepreneursand SME owners.
Action 1.14.2:
Enhancementofcurrenteducation,training,anddevelopmentalofferingsasappropriatetofillidentifiedgaps.
Action 1.14.3:
Establishspecificmicro-credentialsforentrepreneursinfinance,digitalisation,humanresources,etc.
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Inclusive Entrepreneurship Seekingtomaximisethepotentialofdemographicgroupsthathaveuntappedentrepreneurialpotentialrequires a focused response, informed by the range of entrepreneurial models, such as social enterprise.
Recommendation 1.15
Maximise the entrepreneurial potential of all demographic groups. Spotlight in particular those with untapped entrepreneurial potential e.g. women, returned emigrants, immigrants, youth, those aged 50+ and those living in rural environments.
Action 1.15.1:
Higherratesofentrepreneurshipbyunder-representedgroups.
Action 1.15.2:
AttractIrishcitizensabroadandEuropeancitizenstoIrelandtosetuptheirentrepreneurialbusiness.
Action 1.15.3:
Entrepreneurship Ambassadors.
SME Access to Public Procurement SMEswouldrealisetangiblebenefitsifaccesstoStatecontractsforinnovativeproductsandtechnologieswas made easier for SMEs. There is huge value to entrepreneurs and their companies of being awarded apublicsectorcontract,oftenestablishingthemonagrowthpathtocompetingforandwinninglargercontracts in the public and private sector. The State benefitsdirectlybyevaluatingnewservicesandtechnologies of both strategic importance to the State andpracticalimportancetoitscitizens.
Recommendation 1.16
Easier SME access to Government contracts.
Action 1.16.1:
Simple“BecomeaSupplier”buttontoregisterwithforGovernmentDepartmentsandagencies.
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Recommendation 1.17
Expand Government’s role in strategic procurement and evaluation of new innovations e.g. by expanding Small Business Innovation Research (SBIR) scheme.
Action 1.17.1:
Ensure all Government Departments, agencies and public bodies have a strategic and formally developed programfortestingandevaluatingnewtechnologiesandservices.
Recommendation 1.18
Assist SMEs to win more public procurement contracts.
Action 1.18.1:
ProvidesupportsandtrainingtoSMEstoenablethemtocompeteeffectively for public procurement contracts.
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Targeting Strategic High-Growth Entrepreneurship The emerging view at European level is that governmentsneedtobemoreinvolvedincreatinglargecompaniesthatarechampionsindisruptivetechnologies.Entrepreneurshippolicyshouldidentifydisruptivetechnologiesaswellashighpotentialindividuals and enterprises early, and facilitate their journeytowardscreatingunicorncompanies.
Recommendation 1.19
Develop specific supports targeted at aiding very high potential businesses. Identify sectors and industries in which Government actively seeks the creation of new companies by working with founders and capital providers.
Action 1.19.1
PartnershipwithStrategicEntrepreneurshipAmbassadors–anEUinitiativetocreateanew advisory group of entrepreneurs from across Europe which will play the role of a sounding board.
Action 1.19.2
CreationofaclearstrategytotargetpotentialhighgrowthcompaniesincludingTechUnicorncompanies for advocacy and access to Policymakers.
Action 1.19.3
State investments in emerging unicorns and removal of barriers for growth.
Action 1.19.4
EncouragehighpotentialentrepreneursandtheircompaniestoremaindomiciledinIreland andattractpotentialunicorncreatorstoIrelandfromabroad.
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Digitalisation to Facilitate SME Growth GovernmentmustdomoretoencouragedigitalisationbyfullydigitalisingitsownactivitiesandservicesandsupportingSMEstodothesame.TheNationalBroadbandPlanand5GrolloutpresentimportantopportunitiesforSMEs.IncreasedsupportstoencouragesmallfirmstosellB2BandB2Cwouldgreatly increase the chances of success of SMEs.
Recommendation 1.20
Broadband / 5G rollout.
Action 1.20.1
Appropriateroll-outofbroadbandand5G.
Recommendation 1.21
Digital tools for SMEs.
Action 1.21.1
Viatherelevantagencies,provideexpertisetoSMEsinrespectofdigitaltoolsthatareavailable to grow their businesses.
Action 1.21.2
FacilitateSMEtoSMEandBigTechtoSMEcollaborationonhowdigitaltoolscanhelpSMEsgrow.
Recommendation 1.22
Government bodies and agencies to embrace digitalisation in serving their clients.
Action 1.22.1
ServicestoSMEstobedistributedviaestablishedsocialmediaplatforms.
Recommendation 1.23
Government agencies to accept digital signatures in all cases.
Action 1.23.1
OptionfordigitalsignaturesforallGovernment,agencyandlocalauthoritycontracts.
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Regulation Historically,theEUhasledbydevelopingnewstandards,positioningtheEUasaregulatoryexporter(GSM phones, Solvency II insurance). Ireland has been at the forefront in some areas, including reinsurance andfundmanagement.Jurisdictionsthatleadintheregulationofemergingsectorstendtohavestronggrowthinthesesectors.Ofparticularinterestare genomics, AI, social media and blue energy. In addition,regulatoryobstaclesforSMEsintheexisting‘businessasusualspace’suchasfilings,reportingandgovernance should be minimised.
Recommendation 1.24
Identify emerging sectors for front loading regulation.
Action 1.24.1
IrelandtoleaddraftingandadoptionofEUDirectives.
Action 1.24.2
Developlocalenlightenedregulationinstrategicallychosensectors.
Recommendation 1.25
Regulations should be created and administered in a manner that minimises obstacles for SMEs.
Action 1.25.1
Introducethe‘ThinkSmallFirstPrinciple’,whichrequiresSMEs’intereststobetakenintoaccount at a very early stage of policy making.
Action 1.25.2
EnsureGovernmentDepartmentsandagenciesadoptmeasurestoavoidplacingadisproportionateburden on small businesses.
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2. Productivity, Digitalisation and Competitiveness
The Challenge Irish SMEs face challenges in boosting their productivity, adopting digitalisation and increasing competitiveness on an ongoing basis. According to OECD research, the key driving forces resulting in low productivity include; low levels of human capital, poor rates of digitalisation in terms of both practices and processes, in addition to deficient digital skills, low levels of business expenditure on research and development to drive innovation of business practices and low levels of capitalisation. Compounding these challenges is the reality that a number of SMEs fall between the gaps of State-led initiatives and face difficulty in navigating and accessing the supports they require to improve and enhance their enterprise.
The Overarching Vision for Productivity, Digitalisation and Competitiveness:
“Enable greater productivity, increased digitalisation and improved competitiveness among SMEs of all sizes and across all sectors through a visible, accessible and streamlined ecosystem of supports, constantly reacting to the changing needs of SMEs.”
SMEsaretimepoorandthusrequireefficient,streamlined processes to access relevant supports togrowtheirenterpriseandboostproductivity.SMEs must be enabled to understand their strengths andweaknessestoidentifyoptimumsupports,strategically bolster their human capital and develop necessary skills and competencies to increase their capabilities,rateofproductionandefficiency.SMEsmustbesupportedtoreacttotherapidadoptionofdigitalisationandfacilitatedtoeducateandencouragetheiremployeestodrivetransformativedigitalisationof the enterprise.
Inanincreasinglycompetitiveworld,thevalue ofinnovationmustbebetterunderstoodbySMEsandinnovationsupportsmustbeincreasinglyaccessible. SMEs must have improved access to financeand,fundamentally,thecostofdoingbusinessmust be maintained at sustainable levels to drive competitivenessandtoenableIrishenterprisetoremainresilienttochangesinthenationalandglobaleconomy.
There are many challenges that SMEs alone cannot overcome and thus, there is a clear role forGovernmenttoplayinsupportingSMEs.Moreover,challengesintheareasoftheproductivity,digitalisationandcompetitivenessarecurrentlyexacerbatedbybothBrexitandtheCOVID-19healthcrisis, increasing the need for greater SME support. ThesixrecommendationsbelowwillassistIrishSMEstoincreaseproductivity,adoptdigitalisationnowandintothefutureandbecomeincreasinglycompetitiveasnationalandglobalmarketdemandsevolve.
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Recommendations to Achieve the Vision Recommendation 2.1
Reduce the administrative burden placed on SMEs and provide a streamlined and time-efficient process for SMEs to navigate and access national and European Union supports.
AlargecohortofSMEswithmorethan10employees,includingbothexportandnon-exportorientatedSMEs,arenoteligibleforEnterpriseIrelandsupportnoraretheyactivelysupportedbyaLocalEnterpriseOffice(LEO).Thus,manyIrishSMEsfallthroughthegapsofStatesupport.Amorecohesiveandunifiedapproachto State support is required to ensure that SMEs of all sizes and across all sectors receive a consistent level of support,facilitatingagreaternumberofthemtoincreasetheirproductivity,digitalisationandcompetitiveness.
Action 2.1.1:
DevelopagovernancemodelthatensuresbetteragencycoverageforSMEsofallsizesandacrossallsectors.DevelopmentofthismodelmayincludetheconsiderationofanewNationalAgencyforSMEsorimprovedmechanismstojoinupexistingagenciesandinitiativestoclosethegapscurrentlyfacedbyasignificantcohort of SMEs.
Action 2.1.2:
The improved governance model should include the establishment of a Single SME Portal to provide access toassistanceandsupports.Inordertoboostproductivity,itisimperativethattheadministrativeburdenplacedonSMEstoidentifyandaccesssupportsissignificantlyreduced.Thisportalmaybebuiltonexistingplatforms.Toachievethis,theSingleSMEPortal,throughtheuseofcommonlanguagetoimproveawarenessand understanding, will:
• implementthe‘OnlyOnce’principle,whichentailsthatcitizensandbusinessesprovidediversedatatopublicadministrationsonlyonce,bystreamliningtheapplicationprocessfornationalandEuropeanUnionsupportsthroughtheuseofa‘digitalpassport’forSMEs.ThedigitalpassportwillcontainalltheSME’sinformationrequiredfornationalandEuropeanUnionapplicationprocess.UndertheEuropeanUnion’ssingledigitalgateway,the‘OnlyOnce’principlewillbeappliedtocross-borderexchangesofinformationfor a range of procedures by December 2023;
• provideaplatformforinformationandaccesstoavailablesupportsandrelatedinformationforSMEs;and
• provideaccesstoanationalmentoringprogrammeforSMEs.Thiscouldbeachievedthroughcoordinationofexistingmentoringprogrammes,suchastheSkillnetIrelandMentorsWorkprogrammeorLEOmentoring programmes, made accessible through the Single SME Portal.
Streamline the application process for national and European Union supports through the use of a ‘digital passport’ for SMEs
Provide a platform for information and access to available supports and related information for SMEs
Single SME Portal
Provide access to a national mentoring programme for SMEs
Action 2.1.3:
Drivemeaningfulimplementationofthe‘ThinkSmallFirst’principleenshrinedinthe‘SmallBusinessAct’forEurope,whichstatesthatSMEinterestsneedtobetakenintoaccountinpolicymaking,atEUandnationallevel.TheEuropeanCommission’sMarch2020‘SMEStrategyforasustainableanddigitalEurope’highlightsthatinordertoreduceregulatoryburdensandincreasemarketaccess,MemberStateshavetocontinuearigorousapplicationofthe‘ThinkSmallFirst’principle.InIreland,thiscanbeachievedthroughtheuseofthe‘SMETest’,ascalledoutintheProgrammeforGovernment.ItiscriticalthattheSMEtestisrecognisedandconsistently implemented by all Government Departments.
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Recommendation 2.2
Develop a suite of coordinated supports to facilitate SMEs to strategically develop human capital to increase productivity and to boost their attractiveness to current and prospective employees.
Action 2.2.1:
TheExpertGrouponFutureSkillsNeeds(EGFSN)intheir‘LeadingtheWay’reportsetoutaseriesofrecommendationsregardinginvestmentinmanagementdevelopmentforSMEgrowthandproductivity,includingtherecommendationthatabasicsuiteoftrainingbeidentifiedformanagementdevelopment.TheEGFSNrecommendationsshouldbeimplementedasapriorityandshouldbesupportedbytheNationalTrainingFund,afunddedicatedtosupportthetrainingofthoseinemployment,andthoseseekingemployment.
TosupportsuccessfulimplementationoftheEGFSNrecommendationsandtoincentiviseparticipation ineducationprogrammes,thefollowingschemesshouldbeintroduced:
• Ataxcreditscheme,orasimilarincentive,shouldbemadeavailableforSMEswhichretainpersonnel whocandemonstratecompletionofanSME-focusedbusiness,managementandfinancialliteracyeducationalcourse;
• AmanagementskillstrainingprogrammeandcertificationschemeforSMEs,basedontheTeagascSpecificPurposeCertificateinFarmAdministration(‘GreenCert’)alreadyinoperationinthefarmingsector.
Action 2.2.2:
DevelopanonlinediagnosticstoolenablingSMEsacrossallsectorstoassesstheirstrengthsandweaknessesandidentifyrelevantschemestoovercomechallenges,furtherdeveloptheirpeopleandpracticesthroughlife-longlearningandseizenewopportunities.ThetoolshouldbeavailablethroughtheSingleSMEPortal.
• ThediagnostictoolwouldrequiretheSMEtoansweraseriesofquestionsabouttheirbusiness,andtheoutputwouldbeprescriptive,providingSMEswithatargetedlistofavailableschemesintermsoftraining,funding,continuingprofessionaldevelopment(CPD)offerings,supportstodevelopwork-from-homepoliciesandpracticesandlife-longlearningprogrammes.
• Suchdiagnosticstoolshavebeenimplementedinotherjurisdictionsandmodels,suchastheFutureSMECapabilityDiagnosticModel,andcouldbestudiedandadaptedforuseinIreland.Additionally,nationallyavailableexistingdiagnosticstools,thoseunderdevelopmentorrecentlyrecommendeddiagnostictoolscouldbeadaptedtosuitthespecificrequirementsofIrishSMEs,withtheobjectivetoboostproductivity.
• Thediagnosticstoolshouldalsocompiledatathatcouldcomplementexistingresourcesdedicatedtoidentifyingskillsneeds,suchastheworkofSOLASSkillsandLabourMarketResearchUnit(SLMRU).Othersynergiesbetweenthediagnostictoolandexistingskillsprogrammes,suchastheSolasSkillstoAdvance course, should be fully exploited.
Action 2.2.3:
Acceleratethedevelopmentofacomprehensivenationalstrategytosupportuptakeandimplementationofflexibleandremoteworkingpracticesacrossallbusinesses,includingSMEs.Thisstrategyshouldincludeappropriatealterationstotaxationandallowancestosupportworkingremotely.Critically,thestrategymustbeenabledbythedeliveryofnationalhighspeedbroadband.TheurgentrequirementforanationalstrategyregardingflexibleandremoteworkinghasbeenaccentuatedbytheCOVID-19healthcrisis.
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Recommendation 2.3
Support the digital transformation of SMEs through a people-centred and financially accessible approach.
Action 2.3.1:
DigitalisationsupportsmustremainavailableforSMEswhicharenotsuitablefortransformativedigitalisation,butrather,aresuitabletoundertakedigitalisationinastepprocess.ExistingschemessuchastheLeanoffersfromEnterpriseIreland,theLEOsandtheLEO‘ProductivityChallenge’model,whichincludesindustrypartners(e.g.EnterpriseIrelandMicrosoftschemeforstart-ups)shouldbebuiltuponandmadeavailabletoallindigenous,non-exportingSMEs,includingSMEswhichfocusonB2C,B2BandB2G.
Action 2.3.2:
DevelopacompetitiveschemeopentoSMEsacrossallsectorsandmarketofferings,enablingSMEs toundertaketransformativedigitalisationoftheirentireenterprisetoincreasevaluetocustomers andtodevelopin-housedigitalproficiencytocontinuallyadoptdigitalisation.
• TheschemewouldenableSMEstoundertakeatransformativedigitalisationoftheirentireenterprise,includinggettingonline,marketingonline,mitigatingcybersecurityrisksanddigitalisingtheiroperationsandadministrationprocesses.Additionally,theschemeshalltakeapeople-centredapproachtoachieve in-housedigitalproficiencybyengagingandenablingallstaffwithintheSMEtosupportdigitalisationoftheenterpriseonanongoingbasis,increasethecapacityoftheenterprisetodelivervaluethroughefficientsystems and processes and reduce costs through improved ways of working, building on the LeanformicroandLeanprogrammesofferedbytheLEOsandEnterpriseIreland.
• The scheme shall be open to all SMEs, including SMEs which focus on B2C, B2B and B2G. It should fullyexploitsynergieswiththenetworkofDigitalHubsannouncedinBudget2021todrivetake-up at regional level.
• Astheschemewouldberunthroughacompetitiveprocessandthenumberofparticipantsperannumwouldbelimited,theleveloffundingmustbesufficienttodigitalisethebusinessasawholeandtoachieveadigitalisationcapabilityandculturewithinSMEs.
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Recommendation 2.4
Support and recognise a broader understanding of innovation to incentivise increased investment in innovation.
Action 2.4.1:
RedefinethequalificationrequirementsfortheR&Dtaxcreditbybroadeningthedefinitionofinnovation toinclude‘processinnovation’and‘organisationalinnovation’.
• BroadeningthedefinitionofinnovationshouldenableSMEstobetterrecognisetheinnovationtheyhaveachieved,recordinnovationandmeasureitsimpact.Throughtheinclusionof‘processinnovation’and‘organisationalinnovation’,theR&DtaxcreditshouldincludeongoingactivitieswithinSMEstoimproveandenhancetheirbusinessprocessesandproductsandinparticular,theadoptionofproductivityandefficiencyenhancingprocesses.
• ThisactionwillreducetheadministrativeandfinancialburdenonSMEstoapplyforinnovationsupportsandincentives,astheycouldapplyforagreaterlevelofsupportunderthisbroaderdefinitionofinnovationjustonceayearthoughtheR&Dtaxcredit.
Action 2.4.2:
PromotetheuseoftheISO56000InnovationManagementStandardsbySMEsthroughawarenessbuildingandeducationtoencourageawiderviewandunderstandingofinnovationandgrowinnovationcapabilityand culture within SMES.
• Takingawiderviewofinnovation,outsideoftechnicalresearchanddevelopment,theInnovationManagementStandardwillprovideasetofinteractingelementsthatenableanorganisationtodevelopanddeliverinnovation.Theseelementsaddressorganisationalcontext,leadershipcapability,operationalsupport, planning, measurement, and ongoing improvement.
• EnterpriseIrelandarecurrentlypromotingtheuseoftheISO56000InnovationManagementStandardsundertheirinnovationstrategy.Therefore,encouragingSMEstoadoptthesamestandardswouldfosterconsistencyacrossthesectorsandsupportthecompetitivenessofSMEs,buildingontheworkofNSAIinthis area.
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Recommendation 2.5
Support SMEs to become increasingly financially resilient and enable better access to finance.
Action 2.5.1:
SupportSMEstodevelopfinancialresiliencetounexpectedshocksandforcemajeurebyencouraging allSMEstosaveaportionoftheirfinancialresourcesforunexpectedevents.
• ThismaybeachievedthrougharangeoffinancialinstrumentsorfundswhichincorporateafinancialorotherincentivetoencourageSMEparticipation.SuchinstrumentswouldstrengthentheabilityofSMEstoremainresilienttounexpectedchangesintheirenvironmentandtobettermitigateunanticipatedchallenges.Furthermore,itwouldpromotefinancialplanning,increasingsustainabilityofSMEs.Itisrecommendedthatareviewofpotentialinstrumentstoencouragefinancialresilienceisundertaken.
Action 2.5.2:
Whileacknowledgingthatsubstantialfundinghasbeenallocatedtobusinessloanschemes,suchastheCredit Guarantee Scheme, the most recent updates published by the Department of Enterprise, Trade and Employment show low uptake of such schemes. To understand the low uptake and the key challenges faced bySMEsinobtainingfinance,areviewofState-ledfinancialsupportsshouldbecarriedout,focusingontheend-to-endprocessundertakenbySMEswhenapplyingforandaccessingfinance,andwhetherthereisscopetoadjustaspectsofthisprocesstoencouragemorebusinessestoapply,suchasapplicationcriteriaand security requirements.
• UndertakeareviewofcurrentState-ledfinancialsupportsschemeswhichprovideaccesstofinance,suchas the SME Credit Guarantee Scheme, to enable necessary revisions of current and future schemes, to increaseuptakeandaccesstofinance.Theoutcomeofthisreviewshouldprovideexplanationforlowuptake and demand, inform revisions of current schemes, support the development of future schemes and considerthepotentialpresentedbyinternationallenders.
Action 2.5.3:
SupportbetterawarenessandunderstandingofthecurrentState-ledschemeswhichprovideaccesstofinance,suchastheSMECreditGuaranteeScheme.TheSingleSMEPortalforIrishSMEsmustprovideclearinformationandsupportstoSMEstodriveawarenessandunderstandingoftheapplicationprocessandtobettersupportaccessfinancethroughState-ledfinancialsupportsandotheravenuestoaccessfinance.
Action 2.5.4:
Ensurethatequityfinancingisbeingfullysupportedandutilisedasanalternativetodebtfinancingby re-evaluatingtheeffectivenessofexistingtaxincentiveschemesaimedatincreasingequityinvestment, suchastheEmploymentInvestmentIncentive(EII)scheme,theKeyEmployeeEngagementProgramme(KEEP)andtheStart-UpReliefforEntrepreneurs(SURE).
32
Recommendation 2.6
Support business longevity and increase SME competitiveness by maintaining business costs at sustainable levels.
Action 2.6.1:
Develop an SME Cost Index to measure and monitor the cost of doing business for SMEs in Ireland.
• RisingbusinesscostsimpedeSMEcompetitiveness.TheSMECostIndex,producedbytheCentralStatisticsOffice,shouldincludeacomprehensivearrayofSMEbusinessdirectinputandvariablecostsincludingstaffsalaries,apotentialmandatorypensioncontribution,legalcosts,costsassociatedwithintellectualpropertyrights,insurancecosts,taxationcosts,energycostsandrentalcosts,amongothers.TheSMECostIndexwouldenableSMEsandGovernmenttomeasure,monitorandbetteraddressrisingbusiness costs.
Action 2.6.2:
Support ongoing review of the insurance market to ensure access to insurance for SMEs at a sustainable cost.
Action 2.6.3:
FullyimplementrecommendationsoftheNationalCompetitivenessCouncilwhichrelatetoSMEs,includingrecommendationsintheProductivityStatement2019thatarrangementsbeputinplacetofacilitateaccesstodisaggregateddataonproductivitybysizeclassandatenterpriselevel(e.g.onfirmcharacteristicssuchasexporting,finance,innovation,age,humancapital)inordertodevelopenterprise-policyinterventionstoaddressnationalneeds.
Action 2.6.4:
The high cost of living in some parts of Ireland places wage cost pressure on SMEs. Support should be provided for remote working policies as a means of addressing some of this wage cost pressure.
• EnsureamorelevelplayingfieldbetweenSMEsandMNCsintermsofthemeasuresavailabletoassistwithstaffmobilityandtalentretention,includingthroughtheavailabilityoftaxreliefmeasuresforSMEstosupportstaffmobility.SpecificactionsmayincludeextendingincentivesprovidedbyRevenuetoSMEs,suchtheSpecialAssigneeReliefProgramme(SARP),whichiscurrentlyavailabletoMultinationalCompanies and is unavailable to indigenous SMEs.
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3. Internationalisation The Challenge Increased involvement in international trading activity is an important source of growth for SMEs, and as a small, open economy, is crucial for Ireland’s competitiveness, economic growth and innovation. As a result, we must ensure that all of our SMEs, from the smallest micro companies upwards, are fully equipped to grow by capitalising on export opportunities.
ThishasbeenidentifiedasapriorityareaintherecentOECD Review of SME and Entrepreneurship Policy in Ireland. The Review found that Ireland has one of the lowestratiosofexporterstototalenterprisenumbersintheEU,withonly6.3%ofSMEemployerfirmsengagedinexportingactivity.Thiscompareswith9.6%inFrance,17%intheUKand27%inDenmark.
The review also pointed to a highly concentrated levelofexportactivityamonglargerfirms,with37% of Ireland’s total export volume coming fromthetenlargestexporters,and69%bythefiftylargestexporters.Thestrongrelianceon a small group of leading enterprises has been highlighted as an economic vulnerability bytheNationalCompetitivenessCouncil.
Accordingly,akeyrecommendationintheOECDReviewistoscaleupcurrentSMEinternationalisationinitiativestoincreaseSMEdirectexportingandto expand the range of markets addressed.
In parallel, the Government’s Global Ireland: Ireland’sGlobalFootprintto2025initiativeaimstoacceleratediversificationofexportmarketsbyEnterprise Ireland clients. It aims to double the total value of EI client exports outside the UK fromthe2015baselineby2025,doubleEurozoneexportsby2025;andincreasethediversificationof client exports into new markets, with at least 70%ofexportsgoingbeyondtheUKby2025.
The Overarching Vision for Internationalisation:
“Our ambition is to expand the current exporter base and accelerate the market diversification of existing exporters. We will enable 5,750 SME and Micro enterprises to become export capable and expect to deliver at least 2,000 new exporters and 400 diversified enterprises, extending to all regions of Ireland.”
Akeynewinitiativewillbetofullyintegratethe export support frameworks of Enterprise Ireland,theLocalEnterpriseOffices,InterTradeIreland, Bord Bia and Bord Iascaigh Mhara. This willrequirearegionalandholisticownershipand approach to product, service and export capability development, supplemented by appropriatesector-specificsupportsandguidance,and a dedicated Exporters’ Portal for SMEs.
We must also fully exploit and implement the resources and tools at our disposal to give our SMEsacompetitiveedgeinoverseasmarkets,andleveragethesupportandexpertiseoflocalauthorities,chambersofcommerce,industryassociationandotherrelevantstakeholdersacrossthe country while working with our network of developmentagencyoffices,inregionallocationsandoverseas,todeliveronthatpotential.
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Export propensity, selected countries, 2017
Firm exporti ng rati o, %
Ireland 6.3
Greece 6.6
France 9.6
Finland 15
UK 17.4
Germany 17.5
Austria 22.2
Denmark 27
Netherlands 36.8
Source: OECD – SME and Entrepreneurship Policy in Ireland 2019.
Regional Engagement
Tailored Supports
Qualifi ed Ambiti on to export
Export Growth Plan Exporti ng
2000 New Exporters • 500 Micro • 500 HPSU • 1000 SME
100 High Growth Exporters • Market Diversi� cation• 400 existing exporters
to new markets
Enabling 5750 SME and Micro Enterprises to become export capable through: • Digital Enterprise • Skills & Management
Development • Innovation • Competitiveness • Productivity • New Market Development
Holistic Engagement
Ambiti on — Expand the current exporter base and accelerate the market diversifi cati on of existi ng exporters
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Recommendation 3.1
Develop and implement a holistic policy approach that supports SMEs of all sizes at all stages of their export journey across all regions in Ireland.
Aholisticsupportstructureencompassing theentireSMEsector,frommicrocompaniesupwards, is required to help realise the growth opportunitiesavailabletoSMEsthroughinternationalisation.Thisapproachwouldconnecttherespectiveexportassistanceofferingsof Enterprise Ireland, the Local Enterprise Offices,InterTradeIreland,BordBiaandBordIascaigh Mhara, leading to a fully mapped out export journey for SMEs of all sizes.
Aunifiedapproachsuchasthiswouldhelpcultivatetheexportingambitionsofthesmallestcompaniesby bringing them on the exporter journey at an early stage.Thisprocesswillbeginwiththecompletionof a scorecard, which will assess export readiness and signpost the next steps of the journey. Once thosefirststepshavebeentaken,aclearpathwaywill be open to businesses, with supports to help them along each step of the journey.
Thisholisticapproachwillbuildonexistingsupportsoffering,incorporatingallofthebestelementsofthecurrentsuiteofsupportsandutilisingtheseforthebenefitofawidercohortofSMEs.
The pathway will be demarcated by stages, each withadistinctsupportofferingfocusedonbuildingexportingcapabilityandcapacity.Keyamongthese will be Market Research and Development, ValueProposition,ProductDevelopment,SalesProcess, IP and Licensing, access to capital and identificationofappropriateskillsneeds.
Action 3.1.1:
Mapthestages,andthekeyrequirementsforeachstage,ofthe‘ExporterJourney’forMicro,SmallandMedium size enterprises, including public and private sector sources of support and advice”. Develop a Scorecard to enable companies understand their readiness to export or increase export intensity. Output fromtheScorecardshouldpointtospecificrecommendationsastothestepsthecompanyshouldtake.
Action 3.1.2:
Developaholisticapproachtoprogrammedesignanddelivery,andfinancialsupports,atbothcompanyandnationallevelthatensuresaclearpathwayforcurrentandpotentialexportingSMEsofallsizes,includingmicros, through all stages of the journey to exporter.
Action 3.1.3:
Supportcompaniesinaholisticwaytobuildthecapabilityandcapacitytomeetthekeyrequirements ateachstage,bycombiningallsupports(currentandnew)intooneofferingatregionallevelforeachstage oftheJourney.Themostsignificantoftheserequirementsare:
• Abilitytoaccesscapitalincludingcreditfacilities,equityinvestmentandloans(considernationallevel PE type funding with long horizon, state backed loans);
• Capability and capacity for Market Research and Development to develop and implement market entry strategies;
• CapabilityandcapacityforProductDevelopment,IPandLicensingtoensureproductsmatchspecificmarketneedsandwillbecompetitiveandprotected;
• Capability to adopt and implement Lean Process and thinking in all aspects of the business;
• Abilitytoidentifyappropriateskillsdevelopmentandmentoringopportunities.
Action 3.1.4:
ConsolidatetheinformationontheExportJourneyandthesupportsintoadedicatedExporters’Portal for SMEs.
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Digital/Onlineactivity
First sale in overseas market
Partner, Agent, Distributor appointed
Subsequent salesinfirst
market
Establish direct presenceinfirst
market
New sales and distributioninsecond/
adjacent market
Export Sales, distributionandmarketpresence in 3+ markets
Overseas Investment
DomesticallyFocussed — No ExportActivity
Export Journey
Pre Exporti ng Stage Experimental Exporter Acti ve Exporter Committ ed Exporter Global Business
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Recommendation 3.2
Regionally implement a tiered approach to support offerings to reflect the evolving needs and potential of SMEs at different stages of the export Journey.
WhileaholisticapproachisneededtoensurethatgrowingSMEsenjoyaseamlesstransitionfromonephase of the export journey to the next, this must becombinedwithmoretargetedinterventionstocatertospecificneedsofSMEs,dependingontheirsector,sizeandstageofevolution.
Targeted supports by stage of exporter journey
ThesupportsofferingshouldbetieredtoreflecttheevolvingneedsofSMEsatdifferentstagesoftheJourney.
At micro level, emphasis should be placed on helping businesses acquire the resources and skills to fully exploitdigitalplatformsasagatewaytobecomingan exporter. The challenge here will be to make businessesawareof,absorbandeffectivelyexploitnew technologies and markets. Micros should also have access to more comprehensive exporter programmes that combines elements of the wide range of small programmes currently available.
In terms of small companies with more than 10 employees, there is scope to target both new and underperforming exporters through the creationofanewholisticofferinginlinewiththeEnterprise Ireland EuroZone Start programme and complementedwithbespokeconsultingsupport.
Action 3.2.1:
DriveMicroandStart-upcompaniestotakethefirststepsontheExportjourneyandcapitaliseonexportopportunities
• Enable 3,000 Micro and start up enterprises to become Digital Exporters and to take advantage of export opportunities,mainlythroughaggressivetargetingbytheLEOsofanewDigitalExporterVoucherschemewhichshouldincludeadviceandsupportonintegratingdigitaltools,digitalskillstrainingsupport,digitalmarketingandofferahighergrantaidpercentage;
• ProvideDigitalskillssupport(people,consultantsetc)intheLEOsandbuildsupportandpeer-lednetworkstohelpdriveandembedthetransitiontodigital;
• Review all current supports to Micro and start up enterprises from EI, LEOs and InterTrade Ireland and developanewholisticoffercombiningallelementsrequiredtostartandbesuccessfulontheExportJourney.Get500existingMicroenterprisesand500HighpotentialstartupenterprisesonthatJourney.Reviewallevaluationmodelsavailableandcombinethebestintooneholisticmodel.
Action 3.2.2:
Get2,000additionalSMEsontheExportJourneyandacceleratetheexportmarketdiversification of750existingexporters,withasmallnumberofnewholisticoffering(s)inlinewiththeEIEuroZoneStartprogrammeandcomplementedwithbespokeconsultingsupport.Thisoffering(s)shouldreplaceanumber of the smaller schemes currently available.
Action 3.2.3:
Identify100HighGrowthExporters(fromthe2,000above)andsupportthemontheExportJourneywithanintensivestrategicprogramme,whichhasabespokeelement,thatwillbuildsignificantcapabilitytodrivedouble digit export growth for the SME.
Action 3.2.4:
Develop tailored supports for digital exports as opposed to physical exports, including: support and advice usingdigitalinfrastructuretools;boostingdigitalskillsreadinessthroughaccesstotraining;accesstoadvice and tools to navigate regulatory, tax and legal frameworks; and partnerships with trade bodies and largecompaniestoencourageandsupportdigitally-enabledbusinessestoexport;e-commercereferencearchitecture.
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Recommendation 3.3
Develop sector-specific policy measures within an overall framework to support exporters.
Targeted supports by sector
Theprovisionofsector-specificsupports,including sectoral Export Guides backed by relevantcasestudies,wouldprovidepractical,focusedinformationonmarkets,distributionnetworks and other useful sectoral guidance.
These guides would be supplemented by theidentificationofsectoralchampionsandtheestablishmentofsector-specificnetworksandcommunitiestoenabledata gathering and shared learning.
Informationonsectoralsupportswouldthen be consolidated and made available on the Exporters’ Portal, giving SMEs direct accesstospecificsourcesofsupport.
Action 3.3.1:
DevelopsectoralExportGuidesthataddressinternationalisationchallenges,supportedbyrelevantcase studies. The sectoral Export Guides should include (but not limited to) market knowledge, system requirements,linkswithagents,distributorsandotherkeyplayersintheexportmarkets,settingupsubsidiaries,recruitingandretainingtalent,employmentlawandculturalconsiderations,complianceandregulatory requirements.
Action 3.3.2:
Developsector-specificnetworksandcommunitiestoenabledatagathering,sharedlearningandmentoringforexporting,identificationofsuccessfulSMEstoactassectoralchampions,andtokeeptheExportGuideup to date.
Action 3.3.3:
UsetheExporters’PortaltoincreaseknowledgeofchallengesforspecificsectorsandmarketsanddirectSMEstospecificsourcesofsupport,suchasnetworksandinformationontechnology.
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Recommendation 3.4
Create the broader conditions for exporters to succeed.
Finally, a range of other measures can be taken more generallytoensurethatourexportersareoperatingin an environment that is aligned with their success. There are a range of tools at our disposal to do this.
Criticallyimportantaremeasurestofinanciallyde-risktheexportjourneyforSMEs,andothersincludeleveragingthemultinationalsectorto exploit synergies with SMEs, encouraging the uptake of standards by SMEs as a means of accessing foreign markets, and harnessing thepotentialofIreland’sextensiveandwell-establishedinternationalbusinessnetworks.
Action 3.4.1:
Explorenewwaystomotivate,incentiviseandde-risktheExporterJourneyforSMEs.
These include:
• Facilitatingmoretrademissions(includingvirtualtrademissions)withindustrysectorgroups toenablepeer-to-peerlearning;
• HarnessandsharethelearningfrombusinesseschangingtheirexportstrategiesfollowingBrexit;
• Optionsforfinancialde-riskingtheexportjourneyforSMEs,includingthroughtaxdeductions oneligibleexpensesforinternationalmarketexpansionandinvestmentdevelopmentactivities;
• IntroduceaState-backedexportcreditinsurancescheme;
• EstablishingdedicatedinvestmentandfinancingfacilitiesforallSMEswithexportambitions withtaxbreakstoincentiviseinvestmentsimilartothoseunderthecurrentEmploymentIncentive and Investment Scheme;
• AlowerrateofCGTonpartialexitslinkedtoexternalinvestment;
• EnsurethatprogrammesuseSMEperformancedatatoallowthemtoadaptandimprovedecision-makingby future SMEs;
• FullyexploitthepotentialforcompaniesthroughtheEuropeanEnterpriseNetwork(EEN)whereappropriate.
Action 3.4.2:
Considerallroutestocreatingexporters,including
• ContinuedfocusonexploitingsynergieswithMNCs;
• FacilitatethoseexportingindirectthroughMNC’stoexpandtoincludedirectexporting;
• ImportsubstitutionasameansofenablingexportingSMEs;
• Newwaysoffacilitatingpartneringwithexternalbodiessuchastradeorganisations.
Action 3.4.3:
EncouragetheuseofstandardsandcertificationbySMEsofallsizes,asameansofincreasingqualitymanagementandinnovationpractices,andfacilitatingtradeacrossborders.
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4. Clustering and Networks The Challenge Our group recognises the challenges raised in the OECD report. In addressing these issues, we strongly believe that enterprises, both established SMEs and entrepreneurs, can benefit from peers’ experience of contemporary challenges such as innovation, digitisation, internationalisation, and climate change as well as developing management, knowledge and organisational skills.
NETWORKS Business networks are grouping of professionals based on sharing
experiences and knowledge in order to advance their business through horizontal or vertical networks, develop or gain access to certain skills
and gain access to information on how to grow their business.
CLUSTERS A strategic grouping of companies in a sector or region
(and sometimes both) whose focus is on working together to address market challenges or opportunities in their field (and
region) either nationally or internationally.
NetworksandclustershaveapositiveroletoplayinhelpingIrishSMEsrealisethebenefitsofcollaborationandachievingtheoverallgoalsofthisTaskforce,suchascontributingtowardsincreasedproductivity,internationalisationandspurringentrepreneurship. Networks and clusters can allow SMEs to tackle projects that they might not otherwise undertake, due to a lack of knowledge or resources, a limitednumberofindustrycontactsorrelationships,organisationalagility,oreconomiesofscale.
Business networks are grouping of professionals based on sharing experiences and knowledge in order to advance their business through horizontal or verticalnetworks,developorgainaccesstocertainskillsandgainaccesstoinformationonhowtogrowtheir business. Clusters are a strategic grouping of companiesinasectororregion(andsometimesboth)whose focus is on working together to address market challengesoropportunitiesintheirfield(andregion)eithernationallyorinternationally.NetworksandclustersexistthroughoutIrelandandtheirformationand development has been fostered by State Agencies,BusinessRepresentativeOrganisationsandotherprivatesectorfirms.ThechallengefacingIreland is how to strengthen these network and clustering structures, so they can overcome growth constraints and add more value to the Irish economy.
ThetaskoftheClusteringandNetworkssub-groupwastoidentifymeasuresthatwouldincreasetheeffectivenessofclustersandnetworksinIreland.As evidenced in other countries, such as Germany, increasingefficiencyandawarenessofrelevantclusters and networks will lead to increased collaborationatsectoralandregionallevelbetweenSMEs,largecompaniesandresearchinstitutions,leveraging greater economies of scale and enhancing the skills levels of SMEs than would be achieved byenterprisesoperatingbythemselves.Overall,increasing the visibility of and engagement with, and utilisationof,clusteringandnetworkstructureswilllead to a strengthened SME and entrepreneurship base.Havingreviewedtherecommendationsfromthe OECD study on SME and Entrepreneurship Policy in Ireland and having drawn on the variety of experience andexpertisefromthemembersofoursubgroup,theproposed measures are set out below.
The Overarching Vision for Clustering and Networks:
“Coordinated and targeted funding for networks and clusters in Ireland will enhance their ability to help SMEs grow and internationalise while also improving firms’ organisational agility as they learn from best practice on emerging challenges, including the transition to the low carbon economy.”
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Recommendations to Achieve the Vision Recommendation 4.1
Establish a Government programme/unit that supports and provides funding to cluster management organisations and formal business networks across Ireland, which will establish standard quality criteria and standardisation of funding structures, while also increasing the visibility of existing networks, clusters and the supports available.
Analyse the Network and Cluster Landscape
Centralised Communication
Platform
Professionalisation Supports
Exemplar Framework Development
Informs policy and identi fi es policy gaps
Maps existi ng Networks and Clusters by sector and region
Establish Government Programme/Unit to Support
Networks and Clusters
Gives overview of nati onal and internati onal support programmes for Networks and Clusters
Provides visibility for existi ng Networks and Clusters by sector and region
Training to improve management processes
Best practi ce toolkit for Network and Cluster Management
Support to create contracts that defi ne the governance and goals of Networks and Clusters
Proacti ve development of a framework for Clusters to be established around emerging issues
and industries.
Establish a Nati onal Climate Cluster that demonstrates this idea in acti on.
Alackofpolicyandprogrammecoordinationhasbeenidentifiedasabarriertoimprovingtheoveralleffectivenessofstate-fundednetworkandclusterprogrammes in Ireland. It is recommended that a coordinated Government programme or structure that supports formal business networks and cluster managementorganisationsacrossIreland is introduced.
Thisprogrammecouldpotentiallyestablishstandardqualitycriteriaandstandardisationoffundingstructures, while also increasing the visibility of existingprogrammes.Itisimportantthatthisprocessinvolves regional policy makers and stakeholders, whilealsoofferingvaluetoalltypesofSMEsregardless of their stage of development.
• Thenationalnetworkandclusterprogramme will be informed by the analysis that is proposed inRecommendation2.
• Thiscentralisedprogrammewillprioritiseidentifiedand emerging challenges such as the low carbon transitionanddigitisationandensurethatallclustersand networks are informed of the latest updates and supports available in these areas.
• TheprocesswillinvolvethecreationofNetworkandCluster Coordinators in each region and the mapping of networks and clusters in the ecosystem, including mappingofinterconnections(eachnetworktobeclassifiedbysector,stageofbusinessdevelopment,special interest, etc.)
• The Network and Cluster Coordinators will also developguidelinesoncrosscuttingthemesfornetworksandclusters,prioritisingkeyareassuch asdigitisation,climatechange,industrystandards.
Action 4.1.1:
ThecreationofacoordinatedGovernmentnetworkandclusterprogramme.
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Recommendation 4.2
Perform an analysis of existing State-funded network/clustering programmes in Ireland to fill information gaps i.e. what works, what doesn’t and what is needed to inform national networking/cluster policy. This analysis will also map current proliferation of formal business networks and clusters by region and sector to identify their relative effectiveness and efficiency.
Theclustering/networkssub-grouprecognises theneedtobuildandstrengthenexistingstructures.AreviewofcurrentState-fundednetworking/clustering programmes, funding and policy is proposedtoascertaintheeffectivenessofcurrentstructuresinmeetingtheobjectivesoftheSMEtaskforceandtoidentifywheregapsexist.Theoverall goal of this analysis is to inform the centralised programmeproposedinRecommendation1, ensuringitisaseffectiveaspossible.
Proposed areas that this review will cover:
• Projects that have been funded, in what sectors, regions and size of enterprise, to inform future structuring of networking and cluster development programmes.Wheregapsareidentified,newtailoredinitiativesfornetworkandclusterdevelopmentcould be brought forward as appropriate.
• Analysisofinternationalbestpracticefornetworkand cluster policy that will inform the review outlined above and the proposal of new tailored initiativesfornetworkandclusterdevelopment.
• Considerationofoutputsfromresearchonskillsneeds to inform network and cluster development – e.g. outputs from Expert Group on Future Skills Needs, National Skills Council–totailorexistingprogrammesandinitiativestotargetfundingfordevelopmentofnetworks and clusters in relevant sectors.
• Identificationoftheadditionalityofnetwork and cluster programmes
• Advisoryonstate-fundednetworkingandclusteringprogrammesthatcouldbetargeted/adaptedtowardsunderrepresentedsocialgroupsidentifiedintheOECDreport(e.g.females,migrants,identifiedagecohorts)
Thesub-groupalsorecognisestheneedforthisanalysistomapthecurrentproliferationofformalnetworks and clusters by region and sector to identifytheirrelativeeffectivenessandefficiency,includingoperationalandmanagementstrengths and shortcomings.
Action 4.2.1:
Thecompletionofareviewofnetworkandclustersupportsandstructures,whichinadditiontomappingthecurrentproliferationofnetworksandclusters,willidentifytheirrelativeeffectivenessandefficiency,includingoperationalandmanagementstrengthsandshortcomings.
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Recommendation 4.3
Create an information portal that offers an overview of the Irish networks and cluster landscape in a user-friendly manner that encourages entrepreneurs and SME owner managers in Ireland to engage, and which attracts positive attention abroad to promote internationalisation.
Acentralcommunicationsplatformhas beenidentifiedasakeyrecommendationoftheclusters/networksubgroup.Theplatform/informationportal will be an easy to navigate online resource linkedtotheNationalnetworkandclusterstructureproposedinRecommendation1andencouragebusinesses to engage with their local Network and Cluster Coordinator.
ItwillalsoprovideeasilyaccessibleinformationontheIrishnetworkandclusterlandscapetopartiesallaroundtheglobe,leadingtoincreasedinternationalcollaborationandexportgrowth.
Keyfeaturesoftheinformationportalwillinclude:
• Anoverviewofnationalandinternationalsupportprogrammes for networks and clusters in general.
• Promotionofexistingenterprise-lednetworks andclustersandidentificationofexistingnetworksandclustersbyspecificregionsandsector.
• PromotionandvisibilityofIrishbusinessnetworksabroadwiththeaimofpromotingtheinternationalisationofnetworksandclusters.
Action 4.3.1:
CreateacentralcommunicationplatformthatoffersanoverviewofthenetworkandclusterlandscapeinIreland and increases the visibility of network and cluster assistance that is available.
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Recommendation 4.4
Provide funding and direction to help professionalise formal network/cluster management to improve the effectiveness of their management processes in order to increase the quality of services they offer to their members. This will also involve increased support being given to companies to develop network/cluster contracts that define the governance, goals and responsibilities of an enterprise-led network or cluster.
Improving the management process of networks andclusterswillbecriticaltothegrowthofstrongclusters and networks in Ireland.
Fundedprogrammestoachievethisobjective will include:
• Thecreationofspecifictrainingfornetwork and cluster managers to improve their management processes and provide an opportunity to learn “bestpractice”management.
• Training for managers on how best to direct networks and clusters to tackle new and emerging challenges,includingtechnologyadoptionandthelowcarbontransition.
• The provision of a development plan (to include training, peer to peer support, networking, expert inputs, etc.) for network and cluster managers.
• Thecreationofatoolkitfornetworkandclustermanagers that includes links to learning programmes, links to business supports websites in Ireland and linkstoclustersupportsandinitiativesataEuropeanUnion level.
• Support, in the form of funding for fees and expert advice, on achieving the European Cluster Excellence Initiativebronze,silverorgoldlabel.TheECEIinitiativeoffersclustersbenchmarksandtargetsthatthey can work towards to improve their management processes.In2020thereweretotalsof1141bronzeclusters, 132 silver clusters and 110 gold clusters in Europe. In Ireland there were 2 bronze clusters, 0 silver clusters and 0 gold clusters.
It is recommended that more support is given to companies in order to develop network and cluster contractsthatdefinethegovernance,goalsandliabilitiesofanenterprisenetwork.Italyintroducednetwork contracts in 2010. This allowed for the formationofbusinessnetworkscalled“networkclusters” and provided a legal basis for companies toestablishcollaborations.
Theformationofthesenetworkandclustercontractscouldbeincentivisedbyallowingmembersofnetwork clusters apply for tax credits, cheaper loans, requestpubliccontractsandsimplifiedadministrativeprocedures.
Action 4.4.1:
DevelopmentofState-fundedassistancetospecificallyimprovethemanagementprocessesofnetwork and clusters.
Action 4.4.2:
Additionally,assistancecouldbeofferedtoclusterswiththedirectaimofhelpingthemachievetheECEIquality label.
Action 4.4.3:
Moresupportbeinggiventocompaniestodevelopnetworkandclustercontractsthatdefine thegovernance,goalsandliabilitiesofanenterprisenetwork.
Action 4.4.4:
Create a legal framework for networks and clusters to establish network and cluster contracts.
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Recommendation 4.5
Form and fund a “National Climate Cluster” of Irish SMEs, research institutions, larger enterprises and other interested parties who are focused on innovating and the Internationalisation of products and services for the low-carbon global economy. This cluster will act as an exemplar framework for cluster management organisations in Ireland.
TheobjectiveofthisclusteristoincreasetheconnectivityandengagementofIrishownedSMEs,researchinstitutions,largerenterprisesandotherinterestedpartiesworkinginthegreenindustrytostrengthentheirproductivityandcompetitiveness.It will be supported by the structures our group has recommended and act as an exemplar framework for what our group is trying to achieve. Funding must beprovidedinordertoensuretheefficiencyof this cluster.
This includes:
• Funding to cover salary costs for a dedicated cluster management team including a cluster development manager and market advisors.
• Supportforeligibleoverheadandoperationcostsassociatedwiththeadministrationofthecluster.
• State agencies and industry experts working with the cluster management to develop strategic workplans thatdetailactionstodrivetheproductivityandinternationalisationactivityofSMEswhoarepartoftheclusterandactionstoincreasethecompetitivenessoftheIrishgreenindustrysector.
• AccesstotheprofessionalisationprogrammesoutlinedinRecommendation4andfundingtoachieve ECEI quality labels.
• FundingandincentivesfortheNationalClimateCluster to network and collaborate with the Sustainable Energy Authority Ireland’s (SEAI) Large Industry Energy Network (LIEN). This will help the members of LIEN, supported by SEAI, work with Irish owned SMEs working in the green industry to improve their energy performance.
Additionally,apriorityobjectiveofthiscluster willbetopromotetheinternationalisationofIrishSMEsworkinginthegreenindustry.Actionstoachieve this include:
• Fundingfortheeffectivemarketing for the cluster abroad.
• Supporttoattendinternationalcluster matchmaking events.
Theperformanceofthisclusterwillbecontinuouslymonitored and will inform policy making towards similar clusters that could be created around other contemporary challenges and emerging industries.
Action 4.5.1:
ThecreationofagreenindustryclusterthatreceivesGovernmentfundingandaimstoincreasetheconnectivityandengagementofIrishownedSMEs,researchinstitutions,largerenterprisesandotherinterestedpartiesworkinginthegreenindustrytostrengthentheirproductivity,competitivenessandabilitytointernationalise.
46
5. Climate Change: challenges and opportunities for the SME sector
Tacklingclimatechangewillbethedefiningglobalchallengeofthenextdecade.Theinternationallyagreed requirements, set out in the Paris Agreement, are translated within the EU into detailed, binding targetsfortransformationinourenergy,transportandheatingsystems,andultimatelythecompleteremoval of carbon emissions from all aspects of our activities.Thistransitiontoalowcarboneconomywillrequiretheconcertedeffortsofsociety,Government and businesses.
In Ireland our SME base is the lifeblood of our economy,criticalindrivingemploymentandeconomicactivityaswellasbeingembeddedinourcommunitiesandsociety.SMEswillplayakeyroleinenablingoursocietytomakethetransitiontoalowcarbon future – requiring both resilience against this changeinoureconomicactivities,aswellasagilitytoidentifyandpursuethesignificantopportunitiesthatcomewiththistransformation.
The European Green Deal, launched in December 2019,isthenewEUGrowthStrategy.TheEuropeanCouncilhasendorsedtheEUCommission’sobjectiveofclimateneutralityacrosstheEUby2050.TheGreen Deal outlines a roadmap for transforming the EUintoafairandcompetitiveeconomy,wheretherearenetzeroemissionsby2050andwhereeconomicgrowth is decoupled from resource use.
Decarbonisationandenvironmentalsustainabilityare being incorporated into all current and future EU policies and funding. The Deal involves revised nationaltargetsforemissionsreductionacrossmemberstates,tomeetthetotal,EU-widetargetofclimateneutralityby2050.The€750billionEURecoveryPlanforCOVID-19alsointendstoexpeditethisobjective,throughinvestmentincleanenergyandtransport,enablinga‘green’Europeanrecovery.
TheGovernmentiscommittedtosupportingtheEuropean Green Deal and to achieving an average of 7%perannumreductioningreenhousegasemissionsfrom2021to2030,a51%totalreductionoverthenext decade, within the Programme for Government. TheClimateActionBill2020commitsIreland,inlaw,tobecomingaclimateneutraleconomyby2050.TheBillwillintroduceeconomywide,5-yearcarbonbudgets from 2021, placing a ceiling on allowable greenhouse gas emissions.
TheClimateActionBillwillthereforeenableustoachieve these Programme for Government targets, keeping us on track to achieve our targets. In order toachievethelevelofemissionsreductionrequired,theGovernmentwillpublisharevisedClimateActionPlanannuallyfrom2021,settingoutthedetailedactionstobetakenbyGovernmentandstakeholders,and the pace of change necessary.
Many SMEs will already be aware of changes in their customers preferences and requirements, as growing societal and commercial awareness focussesattentiononthesustainabilityofproducts,services and supply chains. In supply chains involving largecustomer-facingmultinationals,arequirementforverifiableEnvironmentalandSocialGovernance(ESG)credentialsisquicklybecomingstandardpractice.Customersareincreasinglyconscious of the sustainability of the products and services they consume.
Further, banks, other lenders and investors are increasingly assessing the sustainability of their decisionsinlightofthetransitiontoalowcarboneconomy. These changes require that SMEs are alerttothistransitionandactivatedtoevolveortransformtheiractivitiesinlinewiththeneeds oftheircustomersandthecommunitiesinwhich they operate.
47
This SME and Entrepreneurship Growth Plan sets outaroadmapofactionstoinformandsupportSMEs prepare for this future. All SMEs will need a strategic plan to thrive in a carbon neutral economy. ManyexistingandnewSMEscanandwillinnovatetoprovide the products and services that will drive and facilitateoursocietalandeconomictransformation.
Inordertoberesilientinthetransitiontoalowcarbon economy, SMEs will need to develop management capacity and skills required to assess the likely changes to their cost base, regulatory environment and market standards or customer preferencesinthistransition.Assessingandmeasuring where carbon emissions arise in the supply chain,operations,premises,oracustomer’suseoftheproductorserviceisagoodstartingpointforany business. Understanding and preparing for the changesthatwillberequiredtomitigatechangesinregulations,ahigherpriceofcarbonandevolvingcustomer requirements will enhance the resilience of SMEs.Whilethisassessmentisessentialtoensureresilience,itcanalsohighlightopportunitiesforcostsavingsandresourceefficiencies.
ThisGrowthPlanisambitiousforthefutureofSMEs in a carbon neutral economy. The aim is not justtoberesilienttothetransition,buttogrowandthrivebymaximisingtheopportunitiesitpresents.Thissignificantchangeforoursocietyandeconomywill need new products and new kinds of services that create value through their sustainability. There willbeopportunitiesforbusinessestodifferentiatethemselves on this basis. There is considerable scopeforinnovationinthedesign,developmentanddelivery of carbon neutral products and services. New business models will emerge. SMEs can gain acompetitiveadvantagebystayingclosetothecustomersandcommunitiestheyserve,deliveringsustainablealternativestocarbon-intensiveofferings.
InparticularthisGrowthPlanidentifiesopportunitiesfor clusters or networks of businesses to make thetransitiontoacarbonneutraleconomytogether, learning from the experiences of peers andmaximisingopportunitiestoadoptsustainablepracticesatscale.Inparticular,itproposesthecreationofagreenindustryclustertoincreasetheconnectivityandengagementofIrishownedSMEs,researchinstitutions,largerenterprisesandotherinterestedpartiesworkinginthegreenindustry.
Overthenextdecadethetransitiontoacarbonneutraleconomywillsubstantiallyalterthebusinessenvironment. SMEs should prepare now for the changes underway. A strategic approach to this transitionwillenableSMEstakeadvantageofitsopportunities,growandthrive.
48
1. E
ntre
pren
eurs
hip
Reco
mm
enda
tion
Key
Actio
nsBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
1.1
Crea
te a
mor
e di
vers
e so
urce
of
fund
ing
for e
ntre
pren
eurs
an
d SM
Es, i
nclu
ding
cre
dit,
hybr
id a
nd e
quity
inve
stm
ent.
1.1.
1 Furtherexaminationofoptionsto
increasecreditoptionsforSMEsand
thosestartingnewbusinesses
1.1.
2 G
over
nmen
t com
mitm
ent t
o re
sour
ce
additionalm
easures,e.g.attractforeign
bank
s to
set u
p in
Irel
and,
enh
ance
existingcreditoptions(M
FI,SBC
I,etc),
crea
te a
new
Sta
te B
usin
ess B
ank
for
SMEs,partnerwithexistinglendersto
prov
ide
Stat
e gu
aran
teed
loan
s to
SMEs
, leverageEUfundingoptions(Ecofin,EIB)
1.1.
3 G
over
nmen
t com
mitm
ent t
o fa
cilit
ate
grea
ter i
nves
tmen
t by
priv
ate
capi
tal
in S
MEs
• Influenceofexistinglenders
• Co
st
• St
ate
aid
rule
s •
Regu
lato
ry is
sues
• Lowtake-upofcreditbyIrish
SMEs
•
Bank
s les
s lik
ely
to fu
nd
new
ent
erpr
ises g
iven
the
perc
eive
d ris
k in
volv
ed
• U
ndev
elop
ed p
rivat
e eq
uity
m
arke
t
• Cl
ear g
over
nmen
t man
date
• Potentialtointroducean
existingEuropeanbankto
Irela
nd
• Historicprecedent:
gove
rnm
ent h
as re
cent
ly
fund
ed A
IB a
nd B
ank
of
Irela
nd, a
s wel
l as S
BCI
fund
ing
• ExistingMFIandotheroffe
rs
coul
d be
exp
ande
d • Actionontaxsid
ecould
makeitmoreattractive
for s
peci
alise
d in
vest
ors
to in
vest
in e
arly
sta
ge
busin
esse
s
2021
, O
ngoi
ng•
Num
ber o
f loa
ns to
SM
Es
• Va
lue
of lo
ans t
o SM
Es• Provisionofcreditfacilitiesto
first-timeentrepreneurs
• Proportionofloansfocussed
ongrowth/innovation/export
activity
• Uptakeofcreditfacilities
• In
crea
se in
priv
ate
capi
tal
inve
stm
ents
in S
MEs
1.2
Rem
ove
the
cost
and
av
aila
bilit
y of
insu
ranc
e as
a
barr
ier t
o th
e st
art-
up a
nd
grow
th o
f SM
Es a
nd to
the
type
s of b
usin
esse
s tha
t ca
n be
est
ablis
hed.
Rev
iew
th
e ex
tent
to w
hich
ther
e is
a sy
stem
ic m
arke
t fai
lure
pr
oble
m in
Irel
and.
1.2.
1 DramaticallyreducethecostofEL&PL
insu
ranc
e vi
a m
easu
res t
arge
ted
at th
e co
st o
f cla
ims a
nd th
e du
ty o
f car
e 1.
2.2
Encouragegreatercom
petiti
onby
seek
ing
outadditionalmultinationalunderwriters
to s
uppl
y th
e Iri
sh m
arke
t1.
2.3
Developbestpracticehealth&safety
trai
ning
for S
MEs
via
Ski
llnet
.
• Re
sista
nce
to re
form
and
st
ruct
ure
of c
laim
able
eve
nts
• Brexit,attractivenessofIrish
mar
ket t
o su
pplie
rs
• Lackofinformationfrom
a
NationalDatabaseapartfrom
mot
or c
ases
• Cl
ear g
over
nmen
t pol
icy
as
out
lined
in p
rogr
amm
e fo
r go
vern
men
t • SubCo
mmitteeform
ed
butm
eetingsandupdates
are
scar
ce
Q12021
Gen
eral
D
amag
es
indication
Q2Dutyof
care
• Be
nchm
arki
ng v
ia C
entr
al B
ank
NCI
D L
iabi
lity
repo
rt
• C
anva
ssin
g of
SM
Es v
ia k
ey
representativebodiessuch
as th
e A
llian
ce fo
r Ins
uran
ce
Reform
,ISM
E,IH
Fandother
grou
ps
App
endi
x 1:
Tab
les o
f re
com
men
datio
ns a
nd a
ction
s
49
1. E
ntre
pren
eurs
hip
Reco
mm
enda
tion
Key
Actio
nsBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
1.3
Addr
ess a
reas
of m
arke
t fa
ilure
for c
ompe
titive
ness
fo
r pro
duct
s and
serv
ices
w
hich
are
ess
entia
l to
SMEs
(n
oting
that
som
e su
pplie
rs
are
leav
ing
the
Irish
mar
ket
due
to B
rexi
t)
1.3.
1 A
nnua
l Rev
iew
Pro
cess
, per
haps
invo
lvin
g theNationalCom
petiti
venessCouncil,
DET
E an
d EI
(e.g
. by
way
of i
nclu
sion
ontheagendaoftheongoingNational
Entr
epre
neur
ship
For
um) t
o an
alys
e an
d makerecommendationsinrespectof
mar
ket f
ailu
re fo
r pro
duct
s and
ser
vice
s on
whi
ch S
MEs
dep
end.
1.
3.2
Considerationbygovernment,through
DET
E,ofcreatingaprocessforattracting
EU o
pera
tors
to th
e Iri
sh m
arke
t in
area
s ofidentifi
eddeficit,and/orencourage
Irish
pla
yers
to p
rovi
de s
ervi
ces i
n th
e identifi
edsectors,e.g.banking,creditand
insu
ranc
e se
rvic
es fo
r SM
Es.
Vest
ed in
tere
sts
Creatingasystem
aticforum
to a
ddre
ss m
arke
t fai
lure
s and
competiti
venessissuesfor
SMEs
cou
ld im
prov
e Ire
land
’s ra
nkin
g fo
r eas
e to
do
busin
ess
2021
, O
ngoi
ngCreationofamechanism
toreview
on
an
annu
al b
asis
mar
ket f
ailu
re in
term
sofm
arketcom
petiti
veness
for p
rodu
cts a
nd s
ervi
ces w
hich
areessentialtoSMEs
• Introduceaprocesstoattract
additionaloperatorsinsectors
requiringgreatercom
petiti
on
1.4
Chan
ge C
GT
rule
s to
en
cour
age
inve
stm
ent i
n SM
Es.
1.4.1
Intr
oduc
e a
redu
ced
CGT
rate
(e.g
. 20%
) fo
r fou
nder
s, pr
ivat
e in
vest
ors,
VCs o
r AngelInvestorsw
hoinvestinnon-
prop
erty
SM
Es.
• Co
st
• Perceptionthatentrepreneurs
are
rece
ivin
g fa
vour
able
ta
x tr
eatm
ent v
ersu
s PAY
E w
orke
rs d
espi
te ta
king
hig
her
risks
Additionalinvestm
entshould
lead
to g
reat
er e
mpl
oym
ent
and
rela
ted
taxe
s etc
.
Fina
nce
Act
2021
• Introductionofnew
CGTrate
• Reductionincapital
flightfromIreland
1.5
Com
mis
sion
of T
axati
on a
nd
role
of t
axati
on in
pro
moti
ng
entr
epre
neur
ship
.
1.5.1
Exam
inewhattaxationmeasures(e.g.
rollo
ver r
elie
f, re
duce
d CG
T) w
ould
benefitentrepreneurshipandSM
Egr
owth
.
• U
nder
stan
ding
of
entr
epre
neur
s’ ne
eds
• Ad
ditionalinvestm
entshould
lead
to g
reat
er e
mpl
oym
ent
and
rela
ted
taxe
s etc
1 ye
ar,
Ong
oing
• Co
mmissionofTaxationReport
addr
essin
g en
trep
rene
ur n
eeds
eq
ually
to th
at o
f MN
Cs a
nd F
DI
1.6
Enha
nce
EIIS
rule
s. 1.
6.1
Allo
w C
GT
loss
es fo
r los
smak
ing
EIIS
in
vest
men
ts1.
6.2
Offe
rfullCGTreliefonprofitsonEIIS
inve
stm
ents
mad
e fo
r a y
ear.
1.6.
3 Ch
ange
EIIS
str
uctu
re to
allo
w V
C in
vest
men
ts v
ia L
imite
d Pa
rtne
rshi
ps
• Co
st• Ad
ditionalinvestm
entshould
lead
to g
reat
er e
mpl
oym
ent
and
rela
ted
taxe
s etc
Fina
nce
Act
2021
1. C
GT
loss
es a
llow
ed fo
r EIIS
2.
S60
4A-typereliefforEIIS
3. LimitedPartnershipspermitted
to o
btai
n EI
IS re
lief
1.7
Age
ncy
supp
ort f
or
larg
e no
n-ex
port
ers.
1.7.
1 IdentifyhowtheStatecansupport
busin
esse
s tha
t do
not q
ualif
y fo
r LEO
, EI
or ID
A su
ppor
t.
• Co
st
• Re
sour
ces
• Cl
ear g
over
nmen
t man
date
1-2years
• Pr
ovisi
on o
f gov
ernm
ent s
uppo
rt
and
advo
cacy
for p
revi
ousl
y un
repr
esen
ted
busin
esse
s
50
1. E
ntre
pren
eurs
hip
Reco
mm
enda
tion
Key
Actio
nsBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
1.8
One
sto
p sh
op fo
r bus
ines
s su
ppor
ts, i
nfor
mati
on a
nd
faci
litati
on o
f col
labo
ratio
n ad
min
iste
red
sect
oral
ly.
1.8.1
Sing
le s
ecto
ral o
nlin
e hu
b an
d ag
ency
pointforallSM
Esupports,information
andentrepreneur/SMEcollaboration
underw
hichgeneralandspecificsectoral
supp
orts
can
be
acce
ssed
.
• Cl
ear m
anda
te
• Co
st
• Re
sour
ces
• Cl
ear g
over
nmen
t man
date
1 ye
ar•
Requ
ire g
over
nmen
t age
ncie
s se
t up
a sin
gle
poin
t hub
for
SMEsupports,information
andcollaborationunderw
hich
specificsectorandagency
supp
orts
will
be
acce
ssed
1.9
Esta
blis
h a
Nati
onal
En
trep
rene
ursh
ip F
orum
as
a p
erm
anen
t pol
icy
task
fo
rce
to m
onito
r pro
gres
s of
reco
mm
enda
tions
from
th
e SM
E G
row
th T
askf
orce
Re
port
as w
ell a
s gen
eral
ly
tow
ard
the
revi
ew a
nd
cont
ributi
on to
a c
lear
set o
f st
rate
gic
polic
y ob
jecti
ves
and
targ
ets a
nd p
rovi
de
a fo
rum
to e
nabl
e th
e vi
ews a
nd so
lutio
ns o
f the
en
trep
rene
ur c
omm
unity
, in
clud
ing
inve
stor
s, to
be
artic
ulat
ed to
pol
icy
mak
ers
and
deci
sion
mak
ers.
1.9.1
Ann
ual E
ntre
pren
eurs
hip
Revi
ew, w
hich
w
ould
ass
embl
e th
e re
leva
nt in
dica
tors
to
informthedeliberationso
ftheNational
Entr
epre
neur
ship
For
um to
revi
ew p
olic
y an
d as
sess
pro
gres
s tow
ards
a b
road
ra
nge
of re
leva
nt ta
rget
s. Pr
ogre
ss w
ould
be
reco
gnise
d an
d ba
rrie
rs to
pro
gres
s identifi
ed
1.9.2
Crea
te a
str
uctu
re w
here
by th
e perspectiveso
ftheentrepreneur/SME
communityaresystematicallyincludedin
polic
y di
scus
sions
and
dec
ision
mak
ing
• Re
sour
ces
• Co
st
• G
loba
l Ent
repr
eneu
rshi
p M
onito
rEs
tabl
ishm
ent
of F
orum
by
Q12021,first
repo
rt is
sued
by
Oct
ober
20
21,
Ong
oing
• CreationofaNational
Entr
epre
neur
ship
For
um a
nd
Ann
ual R
epor
t. Cl
ear t
arge
ts
acro
ss a
rang
e of
mea
sure
s identifi
ed,adoptedand
mon
itore
d on
an
annu
al b
asis
. Cl
ear c
hann
els f
or e
ngag
emen
t be
twee
n po
licy
and
deci
sion
mak
ers a
nd e
ntre
pren
eurs
.
51
1. E
ntre
pren
eurs
hip
Reco
mm
enda
tion
Key
Actio
nsBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
1.10
In
trod
uce
the
‘Thi
nk S
mal
l Fi
rst P
rinci
ple’,
whi
ch
requ
ires S
MEs
’ int
eres
ts to
be
take
n in
to a
ccou
nt a
t a
very
ear
ly s
tage
of p
olic
y m
akin
g to
avo
id p
laci
ng a
di
spro
porti
onat
e bu
rden
on
smal
l bus
ines
ses.
1.10
.1 E
nsur
e Po
licy
units
in G
over
nmen
t D
epar
tmen
ts h
ave
the
skill
s to
unde
rsta
nd a
nd e
valu
ate
the
emer
genc
e andadoptionofnew
technologies.
Allstakeholdersaffe
ctedbydraft
legislationordraftsubordinateregulation
shou
ld h
ave
the
oppo
rtun
ity to
giv
e
theirviewsaboutinitiativesandthe
evidenceandinform
ationthatareused
to s
uppo
rt th
em, n
ot o
nly
at a
n ea
rly
stag
e w
hen
polic
y co
ncep
ts a
re n
ot y
et
precise
lydefined,butalso
laterw
hen
moredetailedprovisionsaredrafted.
The
Gov
ernm
ent s
houl
d pu
blish
finaldraftlegislationandthedraft
impactassessm
entsbeforetheinitiative
is ad
opte
d.
TheGovernm
entshouldmakebette
rus
e of
impa
ct a
sses
smen
ts, w
hich
sh
ould
be
upda
ted
to a
sses
s the
impa
ct
ofalllegislation,includingsubordinate
regulation.
The
Gov
ernm
ent s
houl
d pu
blish
finaldraftlegislationincludingimpact
asse
ssm
ents
bef
ore
the
Bill
goes
to
pre-legislativescrutiny.
• Ire
land
cur
rent
ly d
oes n
ot
makeuseofinteractive
ww
ebsit
es to
eng
age
with
st
akeh
olde
rs, n
or is
it re
quire
d to
pub
lish
feed
back
on
consultations.
• Co
nsultationsandex-post
evaluationsarenotyetutilise
donasystematicbasisacrossall
Gov
ernm
ent D
epar
tmen
ts
Introducethe‘ThinkSmall
Firs
t Prin
cipl
e’ U
nder
take
anevaluationofthecurrent
system
and/oraperform
ance
reportingsystemcouldim
prove
currentconsultationpractices.
Redu
ce th
e vo
lum
e an
d im
prov
e th
e qu
ality
of
legislation/regulation
appl
icab
le to
SM
Es.
Set u
p a
cent
ral o
vers
ight
bo
dy to
mon
itor a
nd a
sses
s th
e qu
ality
of t
he R
egul
ator
y Im
pact
Ass
essm
ent p
roce
ss.
1 ye
ar
ongo
ing
Undertakeanevaluationofthe
new
sys
tem
eve
ry y
ear t
o en
sure
th
at “T
hink
Sm
all F
irst P
rinci
ple”
is
bein
g us
ed.
Set u
p a
cent
ral o
vers
ight
bod
y to
m
onito
r and
ass
ess t
he q
ualit
y of
th
e Re
gula
tory
Impa
ct A
sses
smen
t pr
oces
s.
1.11
Sc
hool
leve
l –
refo
rm L
eavi
ng C
ert.
1.11
.1 I
ntro
duce
an
emph
asis
on e
ntre
pren
euria
l be
havi
ours
suc
h as
team
wor
k, p
robl
em
solv
ing
and
risk
taki
ng in
to th
e Le
avin
g Ce
rt a
nd a
mov
e aw
ay fr
om le
arni
ng b
y ro
te a
ppro
ach.
• St
akeh
olde
r agr
eem
ent
to n
ew c
urric
ulum
•
Des
ign
of n
ew c
urric
ulum
•
Teac
hing
and
oth
er re
sour
ces
• G
ood
exam
ples
and
dat
a fr
om o
ther
cou
ntrie
s•
Enga
gem
ent b
y th
e bu
sines
s co
mm
unity
• 1.5-10
year
s• 2.5-10
year
s•
Ong
oing
1. Im
plem
entationofnew
Leaving
Certificatecurriculum
2. R
ebal
anci
ng o
f Lea
ving
Cer
t su
bjec
ts to
con
tem
pora
ry S
TEM
an
d IT
1.12
Th
ird le
vel –
en
trep
rene
ursh
ip e
duca
tion
acro
ss a
ll co
urse
s.
1.12
.1 Entrepreneurshipmoduleoff
eredonall
Third
Lev
el c
ours
es1.
12.2
Int
erns
hip
plac
emen
t pro
gram
me
to b
e off
eredonallThirdLevelcourses
• Movefrom
traditionalmodels
• A
ppro
pria
te te
ache
r and
fu
ndin
g re
sour
ces
• Av
aila
bilit
y of
qua
lity
inte
rnsh
ip p
lace
s
• G
ood
exam
ples
and
dat
a fr
om o
ther
cou
ntrie
s and
existingcourseso
ffering
entr
epre
neur
ship
mod
ules
• Su
ppor
t fro
m th
e bu
sines
s co
mm
unity
2-3years
1. Availabilityofanoptional
entr
epre
neur
ship
mod
ule
on
90%ofrelevantthirdlevel
cour
ses
2. Availabilityofanoptional
internshipplacementw
ith90%
of
rele
vant
third
leve
l cou
rses
52
1. E
ntre
pren
eurs
hip
Reco
mm
enda
tion
Key
Actio
nsBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
1.13
Th
ird le
vel –
En
trep
rene
ursh
ip
App
renti
cesh
ip /
Inte
rnsh
ip
prog
ram
s.
1.13
.1 D
evel
opm
ent o
f a 2
yea
r str
uctu
red
EntrepreneurshipApprenticeshipbacked
by
the
Stat
e.
• Te
achi
ng a
nd fu
ndin
g re
sour
ces
• Av
aila
bilit
y of
pla
cem
ents
in
bus
ines
ses
• Bu
sines
s com
mun
ity s
uppo
rt
• Co
mmunicationofbenefits
to a
spiri
ng e
ntre
pren
eurs
2 ye
ars
Avai
labi
lity
of a
n En
trep
rene
ursh
ip
Apprenticeship.
1.14
En
trep
rene
ur L
evel
– si
ngle
in
form
ation
sour
ce fo
r en
trep
rene
ur e
duca
tiona
l re
sour
ces a
nd e
nhan
cem
ent
of e
duca
tiona
l offe
rings
, in
clud
ing
mic
ro-c
rede
ntial
s.
1.14.1C
learcom
municationofexisting
education,traininganddevelopm
ent
supp
orts
ava
ilabl
e fo
r ent
repr
eneu
rs a
nd
SME
owne
rs
1.14.2Enhancementofcurrenteducation,
training,anddevelopmentaloffe
ringsas
appropriatetofillidentifi
edgaps
1.14.3Establishspecificmicro-credentialsfor
entrepreneursinfinance,digitalisation,
hum
an re
sour
ces,
etc
• Cl
ear m
anda
te R
esou
rces
• Clearercom
municationto
entr
epre
neur
s and
SM
E ow
ners
of w
hat i
s cur
rent
ly
avai
labl
e • Developmentofadditional
/enhancedsupportsb
ased
onidentifi
edgapsand
dem
onst
rate
d ne
ed
6 m
onth
s1.
Cle
ar o
nlin
e to
ol fo
r acc
essin
g availableeducationresources
2. M
easu
rabl
e in
crea
sed
take-upofsupports
1.15
M
axim
ise
the
entr
epre
neur
ial
pote
ntial
of a
ll de
mog
raph
ic
grou
ps. S
potli
ght i
n pa
rticu
lar
thos
e w
ith u
ntap
ped
entr
epre
neur
ial p
oten
tial e
.g.
wom
en, r
etur
ned
emig
rant
s, im
mig
rant
s, yo
uth,
thos
e ag
ed 5
0+ a
nd th
ose
livin
g in
ru
ral e
nviro
nmen
ts.
1.15.1H
igherratesofentrepreneurshipby
under-representedgroups.
1.15.2A
ttractIrish
citizensabroadandEuropean
citizenstoIrelandtosetuptheir
entr
epre
neur
ial b
usin
ess
1.15.3E
ntre
pren
eurs
hip
Am
bass
ador
s
• Traditionalcom
munication
chan
nels
may
not
wor
k•
Reso
urce
s •
Poor
focu
s on
role
mod
els
incom
munications
Gov
ernm
ent m
anda
te2-3years,
Ong
oing
• Increasedinclusionofunder-
repr
esen
ted
grou
ps in
to
entr
epre
neur
ship
•
Impr
ove
rank
ing
in e
ase
to
do
busi
ness
in Ir
elan
d
1.16
Ea
sier S
ME
acce
ss to
go
vern
men
t con
trac
ts.
1.16
.1 Simple“Becom
eaSupplier”butt
on
to re
gist
er w
ith fo
r Gov
ernm
ent
Dep
artm
ents
and
age
ncie
s.
• La
ck o
f urg
ency
•
EU ru
les
Clea
r gov
ernm
ent m
anda
te1
year
EaseofE-registeringasasupplier
with
all
gove
rnm
ent a
genc
y an
d de
part
men
t web
page
s.
1.17
Ex
pand
gov
ernm
ent’s
role
in
str
ateg
ic p
rocu
rem
ent
and
eval
uatio
n of
new
in
nova
tions
e.g
. by
expa
ndin
g Sm
all B
usin
ess I
nnov
ation
Re
sear
ch (S
BIR)
sche
me.
1.17
.1
Ensu
re a
ll G
over
nmen
t Dep
artm
ents
, ag
enci
es a
nd p
ublic
bod
ies h
ave
a st
rate
gic
and
form
ally
dev
elop
ed
programfortestingandevaluatingnew
tech
nolo
gies
and
ser
vice
s
• Re
sour
ces
• Availabilityofhigh-quality
proj
ects
Clea
r gov
ernm
ent m
anda
te2
year
s•
Stra
tegi
c pr
ocur
emen
t and
innovationevaluationincluded
in P
rogr
amm
e fo
r Gov
ernm
ent
• D
oubl
ing
of th
e nu
mbe
r of
fund
ed S
BIR
proj
ects
; mor
e vi
sibili
ty o
f SBI
R
53
1. E
ntre
pren
eurs
hip
Reco
mm
enda
tion
Key
Actio
nsBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
1.18
A
ssis
t SM
Es to
win
mor
e
publ
ic p
rocu
rem
ent
cont
ract
s.
1.18.1P
rovi
de s
uppo
rts a
nd tr
aini
ng to
SM
Es to
enablethem
tocom
peteeffe
ctivelyfor
publ
ic p
rocu
rem
ent c
ontr
acts
.
Lack
of u
rgen
cyCl
ear g
over
nmen
t man
date
1 ye
arW
idel
y av
aila
ble
supp
orts
and
trainingforSMEsoffe
ringskills
and
assis
tanc
e re
leva
nt to
sec
urin
g pu
blic
pro
cure
men
t con
trac
ts.
1.19
D
evel
op sp
ecifi
c su
ppor
ts
targ
eted
at a
idin
g ve
ry h
igh
pote
ntial
bus
ines
ses.
Iden
tify
sect
ors a
nd
indu
strie
s in
whi
ch
gove
rnm
ent a
ctive
ly
seek
s the
cre
ation
of n
ew
com
pani
es b
y w
orki
ng
with
foun
ders
and
cap
ital
prov
ider
s.
1.19.1
Part
ners
hip
with
Str
ateg
ic
Entr
epre
neur
ship
Am
bass
ador
s –
anEUinitiativetocreateanewadvisory
grou
p of
ent
repr
eneu
rs fr
om a
cros
s Eu
rope
whi
ch w
ill p
lay
the
role
of a
so
undi
ng b
oard
1.19.2C
reationofaclearstrategytotarget
potentialhighgrow
thcom
panies
incl
udin
g Te
ch U
nico
rn c
ompa
nies
for
advo
cacy
and
acc
ess t
o Po
licym
aker
s 1.19.3S
tate
inve
stm
ents
in e
mer
ging
uni
corn
s an
d re
mov
al o
f bar
riers
for g
row
th
1.19.4Encouragehighpotentialentrepreneurs
and
thei
r com
pani
es to
rem
ain
dom
icile
d inIrelandandattractpotentialunicorn
crea
tors
to Ir
elan
d fr
om a
broa
d
• Identifyingearlystage
com
pani
es w
ith h
ighe
st
grow
thpotential
• Encouraginginternationaltech
team
s to
set u
p in
Irel
and
• Fi
nanc
e •
Reso
urce
s •
Stat
e ai
d ru
les
• IdentifysectorsinwhichIrish
co
mpa
nies
can
reas
onab
ly p
lay
and
gain
sca
le
Retu
rn to
the
Stat
e in
the
form
ofjobs,internationalprestige,
financialreturn,andthe
potentialforseedingofnew
en
trep
rene
urs.
3-5years,
Ong
oing
A m
easu
rabl
e in
crea
se in
thenumberofinternationally
trad
ing
com
pani
es th
at s
cale
sig
nificantly.Clearstrategy
an
d ne
w s
uppo
rts.
1.20
Br
oadb
and
/ 5G
rollo
ut1.
20.1
Appropriateroll-outofbroadbandand
5G.
• Lackofincentiveto
rollo
ut to
rem
ote
area
s • Geopoliticsofsuppliers
Politicalw
illtoempower
theregionsandfillgaps
incoverageincities.
4years
Broadbandand5G
coverage
in95%
ofcountrybypopulation.
1.21
D
igita
l too
ls fo
r SM
Es1.
21.1
Via
the
rele
vant
age
ncie
s, pr
ovid
e expertisetoSMEsinrespectofdigital
tool
s tha
t are
ava
ilabl
e to
gro
w th
eir
busin
esse
s 1.
21.2
Fac
ilita
te S
ME
to S
ME
and
Big
Tech
to
SMEcollaborationonhow
digitaltools
can
help
SM
Es g
row
• Cl
ear m
anda
te R
esou
rces
Clea
r gov
ernm
ent m
anda
te
2 ye
ars
1. Clearlyidentifi
edgovernm
ent
supp
ort t
o pr
ovid
e ac
cess
to
adv
ice
on d
igita
l too
ls fo
r bu
sines
ses
2. Creationofastructureto
facilitatecollaborationbySMEs
with
oth
er S
MEs
and
Big
Tec
h co
mpa
nies
1.22
G
over
nmen
t bod
ies
and
agen
cies
to e
mbr
ace
digi
talis
ation
in se
rvin
g
thei
r clie
nts.
1.22
.1 S
ervi
ces t
o SM
Es to
be
dist
ribut
ed v
ia
establish
edsocialm
ediaplatforms.
Poor
und
erst
andi
ng o
f te
chno
logi
esCl
ear g
over
nmen
t man
date
2
year
sSe
rvic
es a
cces
sible
mob
ile o
nlin
e andonsocialm
ediaplatforms.
54
1. E
ntre
pren
eurs
hip
Reco
mm
enda
tion
Key
Actio
nsBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
1.23
G
over
nmen
t age
ncie
s to
acce
pt d
igita
l sig
natu
res i
n al
l cas
es.
1.23
.1 O
ptionfordigitalsignaturesforall
gove
rnm
ent,
agen
cy a
nd lo
cal a
utho
rity
cont
ract
s.
• La
ck o
f urg
ency
• Ri
sk a
vers
ion
• Po
or u
nder
stan
ding
of
tech
nolo
gies
Elec
tron
ic C
omm
erce
Act
200
01
year
sProvisionrequiringoptionsfor
digi
tal s
igna
ture
s thr
ough
out S
tate
de
part
men
ts a
nd a
genc
ies a
nd a
t lo
cal a
utho
rity
leve
l.
1.24
Id
entif
y em
ergi
ng se
ctor
s for
fr
ont l
oadi
ng re
gula
tion.
1.24.1Irelandtoleaddraftingandadoption
ofEUDirectives
1.24.2D
eveloplocalenlightenedregulation
in
str
ateg
ical
ly c
hose
n se
ctor
s
• La
ck o
f und
erst
andi
ng a
s to
how
em
brac
ing
regu
lato
ry
deve
lopm
ents
can
cre
ate
busin
esso
pportunities
• En
sure
Pol
icy
units
in
Gov
ernm
ent D
epar
tmen
ts
have
the
skill
s to
unde
rsta
nd
and
eval
uate
the
emer
genc
e andadoptionofnew
te
chno
logi
es
Communicationofbenefits
1-2years
Creationofstructured,targeted
appr
oach
to b
eing
at t
he fo
refr
ont
ofRegulationdevelopment.
1.25
Re
gula
tions
shou
ld b
e cr
eate
d an
d ad
min
iste
red
in a
man
ner t
hat m
inim
ises
ob
stac
les f
or S
MEs
.
1.25.1Introducethe‘ThinkSmallFirstP
rinciple’,
whi
ch re
quire
s SM
Es’ i
nter
ests
to b
e ta
ken
into
acc
ount
at a
ver
y ea
rly s
tage
of
polic
y m
akin
g 1.25.2E
nsur
e G
over
nmen
t Dep
artm
ents
and
ag
enci
es a
dopt
mea
sure
s to
avoi
d pl
acin
g adisproportionateburdenonsm
all
busin
esse
s
Lack
of u
rgen
cyCreationofadditional
opportunitiesforSMEs.
1 ye
ar1.
Adoptionofthe‘ThinkSmall
Firs
t Prin
cipl
e’
2. G
over
nmen
t mea
sure
s to
rem
ove
unne
cess
ary
regu
lato
ry
barr
iers
for S
MEs
55
2. P
rodu
ctivi
ty, D
igita
lisati
on a
nd C
ompe
titive
ness
Reco
mm
enda
tion
Key
Del
iver
able
sBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
2.1
Redu
ce th
e ad
min
istr
ative
bu
rden
pla
ced
on S
MEs
and
pr
ovid
e a
stre
amlin
ed a
nd
time-
effici
ent p
roce
ss fo
r SM
Es to
nav
igat
e an
d ac
cess
na
tiona
l and
Eur
opea
n U
nion
su
ppor
ts.
2.1.
1 A
n im
prov
ed g
over
nanc
e modelwhichensuresbett
er
ente
rpris
e ag
ency
cov
erag
e fo
r all
SMEs
of a
ll siz
es a
nd
acro
ss a
ll se
ctor
s.
1. OverlapwithexistingState
agenciesandinitiatives;
2. Insufficientresources
1. D
evel
op g
over
nanc
e st
ruct
ure
of c
urre
nt
ente
rpris
e fo
cuse
d St
ate
agenciestogenerateajoined-
up m
odel
.
Medium-term
Incr
ease
in th
e nu
mbe
r of
SMEs
acc
essin
g St
ate
supp
orts
.
2.1.
2 Es
tabl
ishm
ent o
f a S
ingl
e SM
E Po
rtal
.1.
Insufficientresources
1. Buildonexistingplatforms
such
as t
he B
usin
ess
Regulationwebsite.
Short-term
Perc
enta
ge o
f SM
Es a
cces
sing
supp
orts
thro
ugh
a ce
ntra
l poi
nt
per a
nnum
;PercentageofSMEscom
pleting
thei
r dig
ital p
assp
ort p
er a
nnum
; Pe
rcen
tage
of S
MEs
participatinginmentoring
prog
ram
me.
2.1.
3 A
ll G
over
nmen
t Departm
entsutilisingSME
Test
.
1. L
ack
of a
war
enes
s with
in
Dep
artm
ents
.1.
Driv
en b
y G
over
nmen
t.2.
SM
E Te
st in
clud
ed
asconsid
erationon
all M
emor
andu
ms t
o Governm
entrelating
torelevantlegislation,
programmesandinitiatives.
Short-term
IncreasedproductivityofIrish
SMEs
.
56
2. P
rodu
ctivi
ty, D
igita
lisati
on a
nd C
ompe
titive
ness
Reco
mm
enda
tion
Key
Del
iver
able
sBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
2.2
Dev
elop
a su
ite o
f co
ordi
nate
d su
ppor
ts
to fa
cilit
ate
SMEs
to
stra
tegi
cally
dev
elop
hu
man
cap
ital t
o in
crea
se
prod
uctiv
ity a
nd to
boo
st
thei
r att
racti
vene
ss to
cu
rren
t and
pro
spec
tive
empl
oyee
s.
2.2.
1 Recommendationsof
Expe
rt G
roup
on
Futu
re
Skill
s Nee
ds in
thei
r ‘LeadingtheWay’report
impl
emen
ted
as p
riorit
y,
supp
orte
d by
: •
a ta
x cr
edit
sche
me,
or a
sim
ilar i
ncen
tive,
for S
MEs
w
hich
reta
in p
erso
nnel
w
ho c
an d
emon
stra
te
com
pleti
on o
f bus
ines
s,
man
agem
ent a
nd fi
nanc
ial
liter
acy
educ
ation
al c
ours
e;•
a m
anag
emen
t ski
lls
trai
ning
pro
gram
me
and
certi
ficati
on s
chem
e fo
r SM
Es, b
ased
on
the
Teag
asc
Spec
ific
Purp
ose
Cer
tifica
te in
Far
m
Adm
inis
trati
on (‘
Gre
en
Cer
t’).
1. Delayedim
plem
entation;
2. In
abili
ty to
impl
emen
t tax
creditorsimilarincentive.
1. Im
plem
entationincludedin
busin
ess p
lans
of r
elev
ant
Dep
artm
ents
.
Medium-termandongoing
Num
berofrecom
mendations
impl
emen
ted
per q
uart
er;
Num
ber o
f SM
Es a
vaili
ng o
f pr
opos
ed ta
x cr
edit.
2.2.
2 O
nlin
e bu
sines
s productivitydiagnostics
tool
.
1. Insufficientresources
requ
ired
to d
evel
op to
ol;
2. O
verla
p w
ith c
urre
nt to
ols
avai
labl
e.
1. D
evel
op c
entr
al s
ourc
e fo
r all
availablediagnostictoolsas
analternativeapproach.
Short-term
Perc
enta
ge o
f SM
Es
utilisingdiagnostictool;
Perc
enta
ge o
f SM
Es
subs
eque
ntly
acc
essin
g su
ppor
ts to
impr
ove
thei
r busin
essp
roductivity.
2.2.
3 PublicationofN
ational
Strategyonflexibleand
rem
ote
wor
king
1. T
imel
ine
to d
evel
op s
trat
egy.
1. Aninter-d
epartm
ental
grou
p ha
d be
en s
et u
p to
w
ork
on th
e G
over
nmen
t’s
com
mitm
ent t
o de
velo
p a
stra
tegy
for r
emot
e w
orki
ng.
Medium-term
Num
ber o
f SM
Es c
apab
le o
f eff
ectivelyworkingremotely.
57
2. P
rodu
ctivi
ty, D
igita
lisati
on a
nd C
ompe
titive
ness
Reco
mm
enda
tion
Key
Del
iver
able
sBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
2.3
Supp
ort t
he d
igita
l tr
ansf
orm
ation
of S
MEs
th
roug
h a
peop
le-c
entr
ed
and
finan
cial
ly a
cces
sibl
e ap
proa
ch.
2.3.
1 Existingdigitalisation
sche
mes
ext
ende
d an
d m
ade
avai
labl
e to
indigenous,non-exporting
SMEs
.
1. L
ow u
ptak
e by
SM
Es1.
Driv
e aw
aren
ess a
nd
prom
otionthrough
diagnosticstoolandSingle
SME
Port
al.
Short-term
Num
berofSMEsparticipating
in s
chem
es;
Num
ber o
f hou
rs in
dig
ital
trai
ning
und
erta
ken
per a
nnum
; SM
E’s o
nlin
e m
etric
s e.g
. w
ebsit
e cl
icks
.
2.3.
2 Implem
entationanduptake
ofacom
petiti
vedigital
transformationschem
e.
1. L
ack
of a
vaila
ble
fund
ing;
2.
Low
leve
ls of
upt
ake.
1.
Bui
ld o
n sc
hem
es li
ke th
e Leanoffe
rsfrom
LEO
/EI/
IDA,theLEO
‘Productivity
Chal
leng
e’ m
odel
to in
clud
e in
dust
ry p
artn
ers
(e.g.EIM
icrosoftscheme
forstart-ups)
2. F
ully
exp
loit
syne
rgie
s with
thenetworkofDigitalH
ubs
anno
unce
d in
Bud
get 2
021
todrivetake-upofschem
eat
regi
onal
leve
l. 3.
Ful
ly e
xplo
it sy
nerg
ies w
ith
Skill
net I
rela
nd’s
Dig
ital
Nationschem
e,duetobe
launchedinH12021and
specificallyfocusedondigital
transformationforSMEs.
Medium-term
Num
ber o
f app
lican
ts w
ho
undertaketransformative
digitalisation.
2.4
Supp
ort a
nd re
cogn
ise
a br
oade
r und
erst
andi
ng o
f in
nova
tion
to in
centi
vise
in
crea
sed
inve
stm
ent i
n in
nova
tion.
2.4.1
Qualificationrequirements
oftheR&
Dtaxcredit
include‘processinnovation’
and‘organisation
innovation’.
1. L
ack
of a
gree
men
t fro
m
RevenuetoreviseR&Dtax
cred
it.
1. Consid
eralternative
taxschemefor‘process
innovation’and‘organisation
innovation’.
Medium-term
Perc
enta
ge in
crea
se in
SM
Es
availingofR&Dtaxcredit;
Productivitymeasurements.
2.4.2
Prom
ote
the
use
of th
e ISO560
00Innovation
Man
agem
ent S
tand
ards
.
1. R
equi
rem
ent t
o ad
apt I
SO
5600
0forSMEs;and
2. Insufficientresourcesto
prom
ote
and
educ
ate.
1. Promotethroughexisting
Stat
e re
sour
ces e
.g.
Ente
rpris
e Ire
land
and
the
LEO
s.
Short-term
Num
berofSMEsadoptingand
implem
entingStandardper
annu
m.
58
2. P
rodu
ctivi
ty, D
igita
lisati
on a
nd C
ompe
titive
ness
Reco
mm
enda
tion
Key
Del
iver
able
sBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
2.5
Supp
ort S
MEs
to b
ecom
e in
crea
sing
ly fi
nanc
ially
re
silie
nt a
nd e
nabl
e be
tter
ac
cess
to fi
nanc
e.
2.5.1
Improvedfinancial
resil
ienc
e am
ong
SMEs
.1.
LackofincentiveforSMEsto
utilisefund.
1. G
ener
ate
awar
enes
s ca
mpa
ign
and
prom
ote
benefitso
fthefund
Medium-term
Num
berofSMEsutilising
activelybuildingfinancial
resil
ienc
e.
2.5.2
Impr
oved
aw
aren
ess a
nd
unde
rsta
ndin
g of
the
currentState-ledfinancial
supp
orts
revi
ew.
1. Continuedlowuptakeof
sche
mes
.1.
Carryoutreview
(action
belo
w)
Short-term
Perc
enta
ge in
crea
se in
upt
ake
of s
chem
es.
2.5.3
Review
ofcurrentState-led
financialsupportschem
es.
1. D
elay
in u
nder
taki
ng re
view
1.
Rev
iew
incl
uded
in b
usin
ess
plan
of r
elev
ant D
epar
tmen
tMedium-term
Perc
enta
ge in
crea
se in
upt
ake
of s
chem
es.
2.5.4
Evaluationthe
effectivenesso
fexisting
taxincentiveschem
es
aim
ed a
t inc
reas
ing
equi
ty
inve
stm
ent.
1. D
elay
in u
nder
taki
ng
evaluation.
1. R
evie
w in
clud
ed in
bus
ines
s pl
an o
f rel
evan
t Dep
artm
ent
Medium-term
Completedevaluationwith
recommendations;
Perc
enta
ge o
f tax
payi
ng S
MEs
av
ailin
g of
one
of t
he s
chem
es.
2.6
Supp
ort b
usin
ess
long
evity
and
incr
ease
SM
E co
mpe
titive
ness
by
mai
ntai
ning
bus
ines
s cos
ts
at su
stai
nabl
e le
vels
.
2.6.
1 PublicationofSMECo
st
Inde
x.1.
Lac
k of
ava
ilabl
e da
ta to
de
velo
p in
dex.
1. CSO
tobegincollectionof
requ
ired
data
. Medium-term
SMECo
stIndexutilisedas
evid
ence
bas
e fo
r pol
icy
mak
ing.
2.6.
2 Su
ppor
t ong
oing
re
view
of t
he in
sura
nce
mar
ket t
o en
sure
acc
ess
to in
sura
nce
for S
MEs
at
a s
usta
inab
le c
ost.
2.6.
3 Implem
entationofNational
Competiti
venessCouncil
recommendationswhich
rela
te to
SM
Es.
1. Delayinim
plem
entation
2. L
ack
of re
sour
ces t
o implem
entrecom
mendation.
1. Im
plem
entationincluded
in b
usin
ess p
lan
of re
leva
nt
Dep
artm
ent.
Medium-term
Num
berofrecom
mendations
impl
emen
ted
per q
uart
er.
2.6.4
Levelplayingfieldbetween
SMEsandMNCstoattract
andretainstaff.
1. L
ack
of a
gree
men
t to
exte
nd
curr
ent s
chem
es to
SM
Es.
1. Explorationofotherfinancial
supp
orts
to a
ddre
ss w
age
cost
s.
Medium-term
Increasedstaffmobilityand
talentretentionamongSM
Es.
59
3. In
tern
ation
alis
ation
Reco
mm
enda
tion
Key
Del
iver
able
sBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
3.1
Dev
elop
and
impl
emen
t a
holis
tic p
olic
y ap
proa
ch th
at
supp
orts
SM
Es o
f all
sizes
at a
ll st
ages
of t
heir
expo
rt jo
urne
y ac
ross
all
regi
ons i
n Ire
land
.
3.1.
1 M
ap th
e st
ages
, and
the
key
requ
irem
ents
foreachstage,ofthe‘ExporterJourney’
for M
icro
, Sm
all a
nd M
ediu
m si
ze
ente
rpris
es, i
nclu
ding
pub
lic a
nd p
rivat
e se
ctor
sou
rces
of s
uppo
rt a
nd a
dvic
e".
Dev
elop
a S
core
card
to e
nabl
e co
mpa
nies
un
ders
tand
thei
r rea
dine
ss to
exp
ort o
r in
crea
se e
xpor
t int
ensit
y. O
utpu
t fro
m
theScorecardshouldpointtospecific
recommendationsastothestepsthe
com
pany
sho
uld
take
.
• A
gree
d ap
proa
ch b
etw
een
rele
vant
age
ncie
s, in
clud
ing
EI, L
EOs,
ITI,
Bord
Bia
, Bor
d Ia
scai
gh M
hara
•
Reso
urce
s to
com
plet
e de
taile
d m
appi
ng
• Partnershipbetweenexisting
organisations
• Provisionofadditional
reso
urce
s and
fund
ing
as
requ
ired
6 m
onth
sCo
mpletionofm
appingof
expo
rter
jour
ney
with
key
re
quire
men
ts fo
r eac
h st
age.
Re
visio
n an
d ex
tend
ing
of
exp
orte
r sco
reca
rd.
3.1.
2 Developaholisticapproachto
prog
ram
me
desig
n an
d de
liver
y, a
nd
financialsupports,atbothcompany
andnationallevelthatensuresaclear
pathwayforcurrentandpotential
exportingSMEsofallsizes,including
mic
ros,
thro
ugh
all s
tage
s of t
he jo
urne
y to
exp
orte
r.
• Co
st
• Re
sour
ces
• A
gree
d ap
proa
ch b
etw
een
rele
vant
age
ncie
s, in
clud
ing
EI, L
EOs,
ITI,
Bord
Bia
, Bor
d Ia
scai
gh M
hara
• Pi
lot t
o sh
ape
and
deve
lop
appr
oach
and
sco
pe o
vera
ll re
sour
cing
requ
irem
ent
• Si
ngle
Ow
ner t
o dr
ive
Expo
rts
• Pa
rtne
rshi
p be
twee
n cu
rren
t organisationsonprogramme
deliv
ery
• Provisionofadditional
reso
urce
s and
fund
ing
as
requ
ired
1 ye
arImplem
entationofholistic
appr
oach
to p
rogr
amm
e de
sign
and
deliv
ery
cove
ring
all S
MEs
fr
om m
icro
up.
60
3. In
tern
ation
alis
ation
Reco
mm
enda
tion
Key
Del
iver
able
sBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
3.1
Dev
elop
and
impl
emen
t a
holis
tic p
olic
y ap
proa
ch th
at
supp
orts
SM
Es o
f all
sizes
at a
ll st
ages
of t
heir
expo
rt jo
urne
y ac
ross
all
regi
ons i
n Ire
land
.
3.1.
3 Supportcom
paniesinaholisticwayto
build
the
capa
bilit
y an
d ca
paci
ty to
mee
t th
e ke
y re
quire
men
ts a
t eac
h st
age,
by
com
bini
ng a
ll su
ppor
ts (c
urre
nt a
nd n
ew)
intooneoffe
ringatregionallevelforeach
stageoftheJourney.Themostsignificant
of th
ese
requ
irem
ents
are
: A
. A
bilit
y to
acc
ess
capi
tal i
nclu
ding
cre
dit
faci
lities
, equ
ity in
vest
men
t and
loan
s (c
onsid
er n
ation
al le
vel P
E ty
pe fu
ndin
g w
ith lo
ng h
oriz
on, s
tate
bac
ked
loan
s)
B.
Cap
abili
ty a
nd c
apac
ity fo
r Mar
ket
Rese
arch
and
Dev
elop
men
t to
deve
lop
and
impl
emen
t mar
ket e
ntry
str
ateg
ies
C.
Cap
abili
ty a
nd c
apac
ity fo
r Pro
duct
D
evel
opm
ent,
IP a
nd L
icen
sing
to e
nsur
e pr
oduc
ts m
atch
spe
cific
mar
ket n
eeds
an
d w
ill b
e co
mpe
titive
and
pro
tect
ed,
D.
Cap
abili
ty to
ado
pt a
nd im
plem
ent L
ean
Proc
ess
and
thin
king
in a
ll as
pect
s of
the
busin
ess
E.
Abi
lity
to id
entif
y ap
prop
riate
sk
ills
deve
lopm
ent a
nd m
ento
ring
oppo
rtun
ities
• A
gree
d ap
proa
ch b
etw
een
rele
vant
age
ncie
s, in
clud
ing
EI, L
EOs,
ITI,
Bord
Bia
, Bor
d Ia
scai
gh M
hara
•
Reso
urce
s •
Avai
labi
lity
of c
apita
l for
le
ndin
g
• Pi
lot t
o sh
ape
and
deve
lop
appr
oach
and
sco
pe o
vera
ll re
sour
cing
requ
irem
ent
• Pa
rtne
rshi
p be
twee
n cu
rren
t organisationsonprogramme
deliv
ery
• Provisionofadditional
reso
urce
s and
fund
ing
as
requ
ired
1 ye
arAv
aila
bilit
y of
pro
gram
me
th
at fu
lly e
ncom
pass
es p
oint
s a
– e
acro
ss a
t eac
h st
age
of th
e ex
port
er jo
urne
y.
3.1.4
Consolidatetheinform
ationonthe
Expo
rt Jo
urne
y an
d th
e su
ppor
ts in
to a
de
dica
ted
Expo
rter
s’ Po
rtal
for S
MEs
.
• Re
sour
ces
• Pr
ovisi
on o
f upd
ated
inform
ation
• Portaldifficulttonavigate
• Identifi
cationof
port
al c
oord
inat
or
• Researchbest-p
ractice
exam
ples
•
Syst
em fo
r pro
visio
n of
re
gula
r upd
ates
, inc
ludi
ng
user-generateddata
1 ye
arSM
E ex
port
er p
orta
l is l
ive.
61
3. In
tern
ation
alis
ation
Reco
mm
enda
tion
Key
Del
iver
able
sBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
3.2
Regi
onal
ly im
plem
ent a
tier
ed
appr
oach
to su
ppor
t offe
rings
to
refle
ct th
e ev
olvi
ng n
eeds
an
d po
tenti
al o
f SM
Es a
t di
ffere
nt s
tage
s of t
he e
xpor
t Jo
urne
y
3.2.
1 DriveMicroandStart-upcompaniesto
takethefirststepsontheExportjourney
andcapitaliseonexportopportunities
• En
able
3,0
00 M
icro
and
sta
rt u
p en
terp
rises
to b
ecom
e D
igita
l Exp
orte
rs
and
to ta
ke a
dvan
tage
of e
xpor
t op
port
uniti
es, m
ainl
y th
roug
h ag
gres
sive
ta
rgeti
ng b
y th
e LE
Os
of a
new
Dig
ital
Expo
rter
Vou
cher
sch
eme
whi
ch s
houl
d in
clud
e ad
vice
and
sup
port
on
inte
grati
ng
digi
tal t
ools
, dig
ital s
kills
trai
ning
sup
port
, di
gita
l mar
ketin
g an
d off
er a
hig
her g
rant
ai
d pe
rcen
tage
• Pr
ovid
e D
igita
l ski
lls s
uppo
rt (p
eopl
e,
cons
ulta
nts
etc)
in th
e LE
Os
and
build
su
ppor
t and
pee
r-le
d ne
twor
ks to
hel
p dr
ive
and
embe
d th
e tr
ansi
tion
to d
igita
l•
Revi
ew a
ll cu
rren
t sup
port
s to
Mic
ro
and
star
t up
ente
rpris
es fr
om E
I, LE
Os
and
Inte
rTra
de Ir
elan
d an
d de
velo
p a
new
hol
istic
offe
r com
bini
ng a
ll el
emen
ts
requ
ired
to s
tart
and
be
succ
essf
ul o
n th
e Ex
port
Jou
rney
. Get
500
exi
sting
Mic
ro
ente
rpris
es a
nd 5
00 H
igh
pote
ntial
sta
rt
up e
nter
pris
es o
n th
at J
ourn
ey. R
evie
w a
ll ev
alua
tion
mod
els
avai
labl
e an
d co
mbi
ne
the
best
into
one
hol
istic
mod
el
• Re
sour
ces a
lread
y st
retc
hed
in L
EOs a
nd E
I•
Age
ncy
skill
set
s• Lackofinterest/aw
areness
from
mic
ros
• Co
uldbedifficultandtim
e-co
nsum
ing
to c
reat
e be
spok
e holisticoffe
rformicros
• Provisionofadditional
reso
urce
s and
fund
ing
as
requ
ired
• Ex
pans
ion
of D
igita
l Onl
ine
Vouc
her t
o ne
w D
igita
l Ex
port
er V
ouch
er to
incl
ude
all a
spec
ts o
f dig
ital t
radi
ng
and
digi
tal s
kills
cou
rses
• EI
to le
ad a
nd s
ecur
e ad
equa
te re
sour
cing
for L
EOs
and
EI to
agg
ress
ivel
y ta
rget
thehighpotentialcom
panies
• O
ppor
tuni
ty fo
r LEO
s to
tailorsom
eexistingEIandITI
supportsforanew
offe
ring
for m
icro
s
5years
3,00
0 m
ore
mic
ros d
igita
lly
enab
led
to ta
ke a
dvan
tage
of
exportopportunities
500microenterprise
sand500
HPSU’shavingavailedofthe
newholisticoffe
ring,tohave
star
ted
on th
e Ex
port
Jour
ney
(exportingtoaleastone
coun
try)
.
3.2.
2 G
et 2
,000additionalSMEsontheExport
Jour
ney
and
acce
lera
te th
e ex
port
mar
ket
diversificationof750existingexporters,
withasmallnum
berofnew
holistic
offering(s)inlinewiththeEIEuroZone
Star
t pro
gram
me
and
com
plem
ente
d withbespokeconsultingsupport.This
offering(s)shouldreplaceanumberofthe
smal
ler s
chem
es c
urre
ntly
ava
ilabl
e.
• Re
sour
ces
• Lackofinterest/aw
areness
• Perceptionthatprogram
me
tootim
e-intensive
• Provisionofadditional
reso
urce
s and
fund
ing
as
requ
ired
• Researchbest-p
ractice
exam
ples
• Eff
ectivetargetingof
companieswithambition
andpotential
5years
1,00
0 ne
w S
MEs
(gre
ater
than
10employees)exporting.
400Exportersaddingatleast
one
new
exp
ort m
arke
t.
62
3. In
tern
ation
alis
ation
Reco
mm
enda
tion
Key
Del
iver
able
sBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
3.2
Regi
onal
ly im
plem
ent a
tier
ed
appr
oach
to su
ppor
t offe
rings
to
refle
ct th
e ev
olvi
ng n
eeds
an
d po
tenti
al o
f SM
Es a
t di
ffere
nt s
tage
s of t
he e
xpor
t Jo
urne
y.
3.2.
3 Identify100HighGrowthExporters
(from
the
2,00
0 ab
ove)
and
sup
port
th
em o
n th
e Ex
port
Jour
ney
with
an
inte
nsiv
e st
rate
gic
prog
ram
me,
whi
ch
has a
bes
poke
ele
men
t, th
at w
ill b
uild
sig
nificantcapabilitytodrivedoubledigit
expo
rt g
row
th fo
r the
SM
E.
• Lackofinterest/aw
areness
• Perceptionthatprogram
me
tootim
e-intensive
• Researchbest-p
ractice
exam
ples
• Eff
ectiveadvertisin
gca
mpa
ign
5years
100HGE’sh
avingavailedof
the
new
inte
nsiv
e st
rate
gic
prog
ram
me
and
on a
hig
h ex
port
gro
wth
traj
ecto
ry.
3.2.4
Dev
elop
tailo
red
supp
orts
for d
igita
l ex
port
s as o
ppos
ed to
phy
sical
exp
orts
, in
clud
ing:
sup
port
and
adv
ice
usin
g di
gita
l infrastructuretools;boostingdigitalskills
read
ines
s thr
ough
acc
ess t
o tr
aini
ng;
acce
ss to
adv
ice
and
tool
s to
navi
gate
re
gula
tory
, tax
and
lega
l fra
mew
orks
; and
pa
rtne
rshi
ps w
ith tr
ade
bodi
es a
nd la
rge
com
pani
es to
enc
oura
ge a
nd s
uppo
rt
digitally-enabledbusinessestoexport;
e-commercereferencearchitecture.
• Re
sour
ces
• Identifi
cationofneedsof
‘digital’exporters
• Co
nductsurveytoidentify
desir
ed s
uppo
rts
1-2years
Besp
oke
supp
orts
pac
kage
identifi
edandmarketedat
digi
tal e
xpor
ters
.
63
3. In
tern
ation
alis
ation
Reco
mm
enda
tion
Key
Del
iver
able
sBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
3.3
Dev
elop
sect
or-s
peci
fic
polic
y m
easu
res w
ithin
an
over
all f
ram
ewor
k to
supp
ort
expo
rter
s.
3.3.
1 D
evel
op s
ecto
ral E
xpor
t Gui
des t
hat
addressinternationalisationchallenges,
supp
orte
d by
rele
vant
cas
e st
udie
s. Th
e se
ctor
al E
xpor
t Gui
des s
houl
d in
clud
e (b
ut n
ot li
mite
d to
) mar
ket
know
ledg
e, s
yste
m re
quire
men
ts, l
inks
w
ith a
gent
s, di
strib
utor
s and
oth
er
key
play
ers i
n th
e ex
port
mar
kets
, settingupsubsidiaries,recruitingand
reta
inin
g ta
lent
, em
ploy
men
t law
and
culturalconsid
erations,complianceand
regu
lato
ry re
quire
men
ts.
• Re
sour
ces
• Maintenanceofup-to-date,
accurateinform
ation
• Kn
owledgeofspecific
mar
kets
Provisionofadditional
reso
urce
s and
fund
ing
as
required.Com
pilationof
detailedsectoralinform
ation
thro
ugh
regu
lar e
ngag
emen
t withactiveexporters,
internationalbusinessn
etworks.
1 ye
ar fo
r key
ex
port
sec
tors
2
year
s for
sm
alle
r and
em
ergi
ng
sect
ors
Sect
oral
gui
des f
ully
com
plet
ed
and
avai
labl
e.
3.3.
2 Developsector-specificnetworksand
communitiestoenabledatagathering,
shar
ed le
arni
ng a
nd m
ento
ring
for
exporting,identificationofsuccessful
SMEs
to a
ct a
s sec
tora
l cha
mpi
ons,
and
to
keep
the
Expo
rt G
uide
up
to d
ate.
• Re
sour
ces t
o se
t up
netw
orks
• Lackofbuy-infrom
SME
com
mun
ity
Provisionofadditional
reso
urce
s and
fund
ing
as
requ
ired
Ensu
re n
etw
orks
are
busin
ess-led
1 ye
ar fo
r key
ex
port
sec
tors
2 ye
ars f
or
smal
ler a
nd
emer
ging
se
ctor
s
Sector-specificnetworks
areoperational.
Sectoralchampionsidentified
and
enga
ged.
3.3.
3 U
se th
e Ex
port
ers’
Port
al to
incr
ease
know
ledgeofchallengesforspecific
sect
ors a
nd m
arke
ts a
nd d
irect
SM
Es
tospecificsourcesofsupport,suchas
networksandinform
ationontechnology.
• Es
tabl
ish o
wne
r of p
orta
l • Provisionofup-to-date
inform
ation
• Sy
stem
for p
rovi
sion
of
regu
lar u
pdat
es1-2years
SME
port
al is
live
and
gui
des
userstow
ardssectorspecific
supp
ort.
64
3. In
tern
ation
alis
ation
Reco
mm
enda
tion
Key
Del
iver
able
sBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
3.4
Crea
te th
e br
oade
r con
ditio
ns
for e
xpor
ters
to su
ccee
d.
3.4.1
Explorenewwaystomotivate,
incentiviseandde-risktheExporter
Jour
ney
for S
ME.
The
se in
clud
e:
I. Fa
cilit
ating
mor
e tr
ade
mis
sions
(inc
ludi
ng
virt
ual t
rade
mis
sions
) with
indu
stry
se
ctor
gro
ups
to e
nabl
e pe
er-t
o-pe
er
lear
ning
.II.
H
arne
ss a
nd s
hare
the
lear
ning
from
bu
sines
ses
chan
ging
thei
r exp
ort
stra
tegi
es fo
llow
ing
Brex
it III
. O
ption
s fo
r fina
ncia
l de-
riski
ng th
e ex
port
jo
urne
y fo
r SM
Es, i
nclu
ding
thro
ugh
tax
dedu
ction
s on
elig
ible
exp
ense
s fo
r int
erna
tiona
l mar
ket e
xpan
sion
and
inve
stm
ent d
evel
opm
ent a
ctivi
ties
IV.
Intr
oduc
e a
Stat
e-ba
cked
exp
ort c
redi
t in
sura
nce
sche
me
V.
Esta
blish
ing
dedi
cate
d in
vest
men
t and
fin
anci
ng fa
ciliti
es fo
r all
SMEs
with
ex
port
am
bitio
ns w
ith ta
x br
eaks
to
ince
ntivi
se in
vest
men
t sim
ilar t
o th
ose
unde
r the
cur
rent
Em
ploy
men
t Inc
entiv
e an
d In
vest
men
t Sch
eme;
V
I. A
low
er ra
te o
f CG
T on
par
tial e
xits
link
ed
to e
xter
nal i
nves
tmen
t. V
II.
ensu
re th
at p
rogr
amm
es u
se S
ME
perf
orm
ance
dat
a to
allo
w th
em to
ada
pt
and
impr
ove
deci
sion-
mak
ing
by fu
ture
SM
Es.
VIII
. Fu
lly e
xplo
it th
e po
tenti
al fo
r com
pani
es
thro
ugh
the
Euro
pean
Ent
erpr
ise
Net
wor
k (E
EN) w
here
app
ropr
iate
.
• Re
sour
ces
• Bu
y-infrom
industrygroups
• La
ck o
f aw
aren
ess
• PossibleStateAidrestrictions
• Riskoffinanciallysupporting
non-viablecom
panies
• Negativepublicperceptionof
taxincentivesforbusinesses
• G
over
nmen
t agr
eem
ent
• Re
sour
ces
• Le
ndin
g fu
nds
• Eff
ectiveprom
otionofevents
• Virtualeventssavetim
eand
mon
ey• Rigorousapplicationcriteria
• Provisionofadditional
reso
urce
s and
fund
ing
as
requ
ired
1 ye
arOptionsh
avebeenexplored.
65
3. In
tern
ation
alis
ation
Reco
mm
enda
tion
Key
Del
iver
able
sBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al
of B
arrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
3.4
Crea
te th
e br
oade
r con
ditio
ns
for e
xpor
ters
to su
ccee
d.
3.4.2
Considerallroutestocreatingexporters,
incl
udin
g I.
Con
tinue
d fo
cus
on e
xplo
iting
syn
ergi
es
with
MN
Cs
II.
Faci
litat
e th
ose
expo
rting
indi
rect
th
roug
h M
NC
s to
exp
and
to in
clud
e di
rect
exp
ortin
g III
. Im
port
sub
stitu
tion
as a
mea
ns o
f en
ablin
g ex
porti
ng S
MEs
IV
. N
ew w
ays
of fa
cilit
ating
par
tner
ing
with
ext
erna
l bod
ies
such
as
trad
e or
gani
satio
ns
• Bu
y-infrom
MNCsR
esources
• ClosecooperationbetweenEI
and
IDA
to fa
cilit
ate
linka
ges
betw
een
MN
Cs
and
SMEs
•
Rese
arch
• Aw
areness-raising
1 ye
arOptionsh
avebeenexplored.
3.4.3
Enco
urag
e th
e us
e of
sta
ndar
ds a
nd
certificationbySM
Esofallsizes,asa
mea
ns o
f inc
reas
ing
qual
ity m
anag
emen
t andinnovationpractices,andfacilitating
trad
e ac
ross
bor
ders
.
• Lo
w u
ptak
e of
sta
ndar
ds
by S
MEs
due
to la
ck o
f aw
aren
ess o
r int
eres
t
Prom
otionofstandardsuptake
byNSA
Iincollaborationwith
othe
r sta
keho
lder
s, su
ch a
s the
LE
Os.
Gre
ater
upt
ake
of s
tand
ards
by
SM
Es.
66
4. C
lust
erin
g &
Net
wor
ks
Reco
mm
enda
tion
Key
Del
iver
able
sBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al o
f Ba
rrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
4.1
Esta
blis
h a
gove
rnm
ent
prog
ram
me
that
supp
orts
an
d pr
ovid
es fu
ndin
g to
fo
rmal
bus
ines
s net
wor
ks
and
clus
ter m
anag
emen
t or
gani
satio
ns a
cros
s Ire
land
whi
ch w
ill e
stab
lish
stan
dard
qua
lity
crite
ria
and
stan
dard
isati
on o
f fu
ndin
g st
ruct
ures
, whi
le
also
incr
easi
ng th
e vi
sibi
lity
of e
xisti
ng n
etw
orks
and
cl
uste
rs a
nd s
tate
- fun
ded
prog
ram
mes
.
4.1.1
Thecreationofa
coor
dina
ted
Gov
ernm
ent
netw
ork
and
clus
ter
prog
ram
me.
Thisprocessw
illbealong-
termcollaborationbetween
Stat
e A
genc
ies,
regi
onal
po
licy
mak
ers a
nd p
rivat
e bu
sines
s.
Significant,dedicatedresource
requ
irem
ent t
o cr
eate
and
su
stai
n.
Potentialduplicationwith
existingnetworksandclusters.
Inordertoensuretim
elyand
effectivedeliveryofacoordinated
approachitmayfitbestw
ithinan
existingstructure,suchasaunitin
DET
E or
in o
ne o
f its
age
ncie
s. Thecreationofthisprogramme
is to
be
info
rmed
by
the
anal
ysis
proposedinRecom
mendation2
andinternationalbestpracticein
netw
ork
and
clus
ter p
olic
y.
TheNationalcluster
prog
ram
me
wou
ld
be in
form
ed b
y th
e pr
opos
ed re
view
of
currentcluster/network
activityandpolicies.
It is
envi
sage
d th
at
this
prog
ram
me
wou
ld
beoperationalinthe
short-m
ediumterm(1-3
year
s).
To b
e su
cces
sful
this
prog
ram
me
will
ha
ve m
easu
rabl
e ta
rget
s em
bedd
ed
withinitso
rganisationsuchas
num
ber o
f net
wor
k an
d cl
uste
rs
created,thegrow
thofexisting
netw
ork
and
clus
ters
and
pol
icy
anal
ysis
of n
etw
ork
and
clus
ter
assistanceoff
eredthroughthis
prog
ram
me.
4.2
Perf
orm
an
anal
ysis
of
exis
ting
netw
ork
and
clus
terin
g pr
ogra
mm
es in
Ire
land
, ide
ntify
ing
good
pr
actic
e an
d ga
ps, i
n or
der
to in
form
the
deve
lopm
ent
of a
nati
onal
net
wor
k an
d cl
uste
r pro
gram
me.
4.2.1
Thecompletionofareview
of
net
wor
k an
d cl
uste
r su
ppor
ts a
nd s
truc
ture
s, whichinadditiontomapping
thecurrentproliferation
of n
etw
orks
and
clu
ster
s, willidentifytheirrelative
effectivenessandefficiency,
includingoperationaland
man
agem
ent s
tren
gths
and
sh
ortc
omin
gs.
Avai
labi
lity
of a
nd a
cces
s to
the
nece
ssar
y da
ta to
con
duct
suc
h an
ana
lysis
may
be
chal
leng
ing.
Thetaskofcom
pletingthereview
isundertakenbyanentitywith
expertiseinpolicyevaluation–e.g.
IGEE
S, O
ECD
. By
invo
lvin
g st
akeh
olde
rs in
the
priv
ate
and
publ
ic s
ecto
r in
the
proc
ess,
the
Stat
e ag
enci
es c
an g
ain
acce
ss to
use
ful d
ata.
It is
prop
osed
that
th
is an
alys
is w
ill b
e co
mpl
eted
in th
e sh
ort
term
(with
in th
e ne
xt
12 m
onth
s).
Thisrecommendationwillbea
succ
ess i
f it i
s com
plet
ed in
the
shor
t ter
m a
nd th
e re
port
is u
sed
toinformthecreationofanational
netw
ork
and
clus
ter p
rogr
amm
e.
67
4. C
lust
erin
g &
Net
wor
ks
Reco
mm
enda
tion
Key
Del
iver
able
sBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al o
f Ba
rrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
4.3
Crea
te a
cen
tral
co
mm
unic
ation
pla
tfor
m
that
offe
rs a
n ov
ervi
ew o
f th
e ne
twor
k an
d cl
uste
r la
ndsc
ape
in Ir
elan
d an
d in
crea
ses t
he v
isibi
lity
of n
etw
ork
and
clus
ter
assis
tanc
e th
at is
ava
ilabl
e.
4.3.1
The
goal
of t
his p
orta
l is t
o:
• Pr
ovid
e a
platf
orm
that
giv
es
an o
verv
iew
of n
ation
al
and
inte
rnati
onal
sup
port
pr
ogra
mm
es fo
r net
wor
ks
and
clus
ters
in g
ener
al.
• Pr
omot
e ex
istin
g en
terp
rise-
led
netw
orks
by
show
ing
clus
ters
by
spec
ific
regi
ons
and
sect
or•
Mak
e vi
sible
Irish
bus
ines
s ne
twor
ks a
broa
d w
ith
the
aim
of p
rom
oting
the
inte
rnati
onal
isati
on o
f ne
twor
ks a
nd c
lust
ers.
Identifi
cationofresourcesfor
creationandupdateofthis
inform
ationportal.
Requ
irem
ent f
or p
orta
l to
beinteractivetooptimise
eff
ectivenessandengagem
ent
with
com
pani
es –
e.g
. with
de
dica
ted
reso
urce
s to
enga
ge
directlywithcom
panies/
resp
ond
to q
uerie
s.
A sim
ilar w
ebsit
e w
as c
reat
ed in
G
erm
any
by th
e Fe
dera
l Min
istr
y forEconomicAffairsandEnergyand
theFederalM
inistryofEducation
and
Rese
arch
. A
simila
r app
roac
h in
Irel
and
coul
d seecollaborationbetweenDET
Ean
d th
e D
epar
tmen
t of F
urth
er
andHigherEducation,Research,
InnovationandScience.
Alternatively,theoperationof
the
web
site
may
com
e un
der
the
rem
it of
the
cent
ralis
ed
Gov
ernm
ent p
rogr
amm
e fo
r ne
twor
ks a
nd c
lust
ers p
ropo
sed
in
Recommendation1.
Thecreationofa
centralcom
munication
platformisarelatively
low-costw
ayof
increasin
gcluster/
netw
ork
visib
ility
. Co
nseq
uent
ly, a
n initialwebsitecouldbe
operationalinthenext
6-9months.
The
furt
her
deve
lopm
ent o
f an
interactiveinform
ation
port
al w
ould
then
co
me
unde
r the
rem
it of
the
cent
ralis
ed
Gov
ernm
ent
prog
ram
me
for
netw
orks
and
clu
ster
s in
the
med
ium
term
(1-3years).
The
succ
ess o
f the
web
site
will
be
revi
ewed
usin
g m
etric
s suc
h as
site
vi
sits a
nd e
ngag
emen
ts.
Additionally,networkandcluster
man
ager
s will
be
aske
d fo
r reg
ular
feedbackonthesite’sfunctions
andrecommendationsfor
impr
ovem
ents
.
68
4. C
lust
erin
g &
Net
wor
ks
Reco
mm
enda
tion
Key
Del
iver
able
sBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al o
f Ba
rrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
4.4
Hel
p pr
ofes
sion
alis
e cl
uste
rs a
nd n
etw
ork
man
agem
ent t
o im
prov
e th
e eff
ectiv
enes
s of t
heir
man
agem
ent p
roce
sses
in
ord
er to
incr
ease
the
qual
ity o
f ser
vice
s the
y off
er to
thei
r mem
bers
.
4.4.1
Developmentofstate-
fund
ed a
ssis
tanc
e to
specificallyim
provethe
man
agem
ent p
roce
sses
of
netw
ork
and
clus
ters
. 4.4.2
Additionally,assistance
couldbeoffe
redtoclusters
with
the
dire
ct a
im o
f he
lpin
g th
em a
chie
ve th
e EC
EI q
ualit
y la
bel.
4.4.3
Mor
e su
ppor
t bei
ng g
iven
to
com
pani
es to
dev
elop
ne
twor
k an
d cl
uste
r contractsthatdefinethe
gove
rnan
ce, g
oals
and
liabilitiesofanenterprise
netw
ork.
4.4.4
Crea
te a
lega
l fra
mew
ork
for n
etw
orks
and
clu
ster
s to
est
ablis
h ne
twor
k an
d cl
uste
r con
trac
ts.
Wor
king
out
the
desig
n professio
nalisationsupports
anddefiningmeasurementsfor
successm
ayprovedifficult.
It is
impo
rtan
t to
ensu
re th
e le
gal f
ram
ewor
k is
desig
ned
efficientlyandaddsvaluetothe
Irish
eco
nom
y.
Euro
pean
clu
ster
s tha
t hav
e ac
hiev
ed th
e go
ld q
ualit
y la
bel w
ill
be c
onsu
lted
on h
ow b
est t
o ac
hiev
e professio
nalisation.
Adaptationofexistingeducation
and
trai
ning
pro
gram
mes
on
man
agem
ent d
evel
opm
ent (
Skill
s to
Adva
nce)
. Fundingforprofessionalisation
coul
d be
del
iver
ed th
roug
h ce
ntra
lised
Gov
ernm
ent p
rogr
amm
e fo
r net
wor
ks a
nd c
lust
ers p
ropo
sed
inRecom
mendation1andprom
oted
on th
e w
ebsit
e pr
opos
ed in
Recommendation3.
Internationalbestpracticeon
network/clustercontractdesign
willbefollowed.Anexam
ination
oftheintroductionofnetwork
cont
ract
s in
Italy
is re
com
men
ded.
Thisallowedfortheform
ationof
busin
ess n
etw
orks
cal
led
“net
wor
k cl
uste
rs” a
nd p
rovi
ded
a le
gal
basis
for c
ompa
nies
to e
stab
lish
collaborations.
Due
to th
e in
crea
sed
econom
icbenefit
impr
ovin
g cl
uste
r m
anag
emen
t will
br
ing
it is
envi
sione
d th
at th
ese
supp
orts
w
ill b
e de
signe
d an
d im
plem
ente
d in
the
short/mediumterm
(next1-3years).
Creatingalegal
fram
ewor
k fo
r ne
twor
ks is
cos
t eff
ective,defines
objectivesandreduces
perceivedrisktofirm
sof
bei
ng p
art o
f a
netw
ork.
Con
sequ
ently
, a
fram
ewor
k w
ill
be d
esig
ned
and
impl
emen
ted
in th
e shortterm(1-2years).
Mea
sura
ble
met
rics w
ill in
clud
e ne
twor
ks a
nd c
lust
er g
row
th,
exportsandcollaborations.
Mea
sura
ble
targ
ets w
ill a
lso b
e in
clud
ed to
impr
ove
the
qual
ity o
f po
licie
s to
incr
ease
ach
ieve
men
t of
ECEI
labe
ls i.e
. for
Irel
and
to h
ave
a specificnumberofbronzeclusters
by2022,aspecificnum
berofsilver
clustersby2024andaspecific
num
ber o
f gol
d cl
uste
rs b
y 20
26.
Mea
sura
ble
targ
ets c
ould
be
incl
uded
to e
nsur
e co
ntra
ct
form
ationispromotedi.e.
achi
evem
ent o
f a ta
rget
ed n
umbe
r ofcontractsoverasettimeperiod
(to 2
030)
. Re
view
of t
he p
erfo
rman
ce o
f ne
twor
ks a
nd c
lust
ers w
ho si
gn
cont
ract
s and
thos
e th
at d
on’t
shou
ld b
e bu
ilt in
to th
e pr
oces
s to
exam
inetheadditionalityofthe
polic
y.
69
4. C
lust
erin
g &
Net
wor
ks
Reco
mm
enda
tion
Key
Del
iver
able
sBa
rrie
rs/C
halle
nges
to d
eliv
ery
Miti
gatio
n/Re
ducti
on/R
emov
al o
f Ba
rrie
rs/C
halle
nges
Tim
elin
eM
easu
rem
ent
4.5
Fund
ing
to b
e pr
ovid
ed to
su
ppor
t the
dev
elop
men
t of
a "N
ation
al C
limat
e Cl
uste
r" o
f Iris
h SM
Es,
rese
arch
insti
tutio
ns, l
arge
r en
terp
rises
and
oth
er
inte
rest
ed p
artie
s who
ar
e fo
cuse
d on
inno
vatin
g an
d In
tern
ation
alis
ation
of
pro
duct
s and
serv
ices
fo
r the
low
-car
bon
glob
al
econ
omy.
4.5.1
Thecreationofagreen
indu
stry
clu
ster
that
re
ceiv
es g
over
nmen
t fu
ndin
g an
d ai
ms t
o in
crea
se
theconnectivityand
enga
gem
ent o
f Iris
h ow
ned
SMEs,researchinstitutions,
larg
er e
nter
prise
s and
otherinterestedparties
wor
king
in th
e gr
een
indu
stry
to s
tren
gthe
n theirproductivity,
competiti
venessandability
tointernationalise
.
Inpracticethisclusterm
aynot
bease
ffectiveash
oped.
Processin
ganddistributing
fund
ing
may
be
burd
enso
me.
Th
e cl
uste
r may
ove
rlap
with
ne
twor
ks a
nd c
lust
ers a
lread
y in
ex
iste
nce
(i.e.
is it
nee
ded?
).
Internationalbestpracticeand
conc
lusio
ns fr
om th
e an
alys
is proposedinRecom
mendation1will
guid
e ho
w th
is cl
uste
r is f
unde
d.
The
perf
orm
ance
of t
he c
lust
er
willcom
eundercontinuousreview
withregularconsultationbetween
clus
ter m
anag
emen
t and
sta
te
agen
cies
. Theprocesso
fmappingexisting
clus
ters
and
net
wor
ks w
ill d
ecid
e w
heth
er th
is cl
uste
r is n
eede
d or
ho
w w
hat a
lread
y ex
ists
can
be
inco
rpor
ated
in it
s des
ign.
Climateaction
is a
prio
rity
and
cons
eque
ntly
we
envi
sage
gro
undw
ork
toinitiatethiscluster
taki
ng p
lace
in th
e ne
xt
12 m
onth
s. Th
is co
uld
invo
lve
esta
blish
ing
a competiti
vefunding
stru
ctur
e (s
imila
r to
the
one
used
by
the
Regi
onal
Tec
hnol
ogy
Clus
ter F
und)
in 2
021
that
issu
es a
targ
eted
ca
ll fo
r int
eres
ted
parties.Thecluster
will
be
subs
eque
ntly
de
velo
ped
over
the
next2years,benefiting
from
the
esta
blish
men
t of
the
othe
r str
uctu
res
sugg
este
d in
recommendations1-4.
Follo
win
g its
creation,weexpect
simila
r clu
ster
s to
be
esta
blish
ed in
oth
er
pres
sing
and
emer
ging
in
dust
ries i
n th
e m
ediu
m te
rm (2
yea
rs)
and
beyo
nd.
Groundw
orktoestablishanational
clim
ate
clus
ter h
as b
een
laid
by
the
end
of 2
021.
M
etric
s to
mea
sure
the
clus
ter’s
pe
rfor
man
ce w
ill in
clud
e cl
uste
r grow
th,num
berofcollaborations
with
in th
e cl
uste
r, re
view
of t
rain
ing
programmesoffe
redbythecluster
andfinancialreview
stoensure
fund
ing
is be
ing
used
app
ropr
iate
ly.
70
Appendix 2: Members of the Taskforce
Leo Varadkar, T.D. Tánaiste and Minister for Enterprise, Trade and Employment
Damien English, T.D. MinisterofStateforEmploymentAffairsandRetailBusinesses
Robert Troy, T.D. MinisterofStateforTradePromotion
Kevin Buckley CEO, Spearline, Skibbereen, Cork
Cllr Seamus Butler Managing Director, BMS
DC Cahalane CEO, Republic of Work, Cork
Brian Caulfield Venture Partner, Draper Esprit
Alison Cowzer Founder, East Coast Bakehouse
John Cunningham Commercial Director, Morgan McKinley recruitment group
Elaina Fitzgerald Director,FitzgeraldsHouseHotelandSpa
Paula Fitzsimons GoingforGrowthInitiative
Thia Hennessy Dean, School of Business, UCC
Linda Murray Founder,PlayActivityandLeisureIreland
Ciaran Murtagh MD, Shay Murtagh Precast Concrete
Philip Noone Founder and CEO, Aalto Bio
Oonagh O’Hagan MD, Meaghers Pharmacy
Gina Quin President,NationalCollegeofIreland
Helen Ryan FormerCEOCreagannaMedical,strategicadvisortoAtlanticBridgeVentures on University Bridge Fund
Oliver Tattan Experienced Entrepreneur, and angel investor
Tom McDonnell ICTU nominee
Julie Sinnamon CEO, Enterprise Ireland
Danny McCoy CEO, Ibec
Neil McDonnell CEO, ISME
Sven Spollen-Behrens CEO, SFA
Ian Talbot CEO, Chambers Ireland
Secretariat (Department of Enterprise, Trade and Employment) DeclanHughes,ConorVerdon,CiaránMcLoughlin,LauraByrne,HazelCarroll,HilaryBurke.
71
EntrepreneurshipChair: Oliver Tattan
Members:
• Alison Cowzer
• DC Cahalane
• GinaQuin
• Linda Murray
• Elizabeth Bowen
• Jenny Melia
• OonaghO’Hagan
• Paula Fitzsimons
Rapporteur: Donal Leahy
Clustering and Networks Chair: Kevin Buckley
Members:
• Danny McCoy
• John Cunningham
• Paula Fitzsimons
• Geraldine Lavin
• Carol Gibbons
Rapporteur: Liam Wallace
Productivity, Digitalisation and Competitiveness Chair: Thia Hennessy
Members:
• Ciarán Murtagh
• Elaina Fitzgerald
• Ian Talbot
• Neil McDonnell
• Geraldine Magnier
• Ruairi Ó hAilín
• Kathryn Lynch
• Liz Thomas
• Derek Butler
Rapporteur: SarahHenry
Internationalisation Chair: Helen Ryan
Members:
• BrianCaulfield
• Seamus Butler
• Phillip Noone
• Fredericka Sheppard
• Tom Cusack
• Mark Barry
Rapporteur: Ciarán McLoughlin
Members of the Subgroups
72
Appendix 3: Submissions Received
Paypal
Dublin Chamber
Chambers Ireland
Orbital Group
SME Recovery Ireland
VISA Ireland
ACCA Ireland
Department of Rural and Community Development
National Standards Authority of Ireland
AIB Merchant Services
Limerick County and City Council