What ‘grants’ and other supports can startup business promoters avail of from enterprise support agencies in Ireland?

If you ever wondered

What assistance can: Enterprise Ireland, Local Enterprise Offices, Institutes of Technology, LEADER, the various Innovation and Community Enterprise Centres, Revenue Commissioners, Social Entrepreneurs Ireland, Bord Iascaigh Mhara, Halo Business Angel Partnership, Microfinance Ireland, IDA Ireland, Marketing Centre for Small Business, Solas (FAS), Bord Bia, and Teagasc – offer my start up business?

The next slide

Might enlighten you as to what organisation you should talk to and when…

And this slidedeck

Should provide a snapshot of what each organisation focuses on….

‘Supports’ For My Startup Greater Risk/ Investment

required

International Market

Orientation

Sources of Finance

If business needs an initial injection of capital:

1. Personal Savings

2. Family & Friends

3. Suppliers

4. Financial Institutions 1. Loans, overdrafts, lines of credit

2. Hire Purchase

5. Enterprise Agencies

New Options

6

www.startuphughes.com/blog/crowdfunding-ireland/

Government Strategy

2012 Action Plan provided overview of Financial Support for Irish Business www.djei.ie/publications/2012APJ.pdf

2014 Action Plan provides updates and focuses on new initiatives www.djei.ie/publications/2014APJ.pdf

• Local Enterprise Office – Training

– Financial Supports • Feasibility

• Priming Grant (to include employment)

• Online Trading Voucher

– Mentoring

• Local Development Partnership/ Social Welfare • Short Term Enterprise Allowance

Where to start?

Online Tool: Answer 8 Questions

2013 - 2016

Plus

• Startup Ireland • Community Enterprise Centres • Micro Finance Ireland • Small Business Can.ie • Social Entrepreneurs Ireland • Bord Bia, Teagasc, Bord Iascaigh

Mhara and/or Údaras if these apply.

And talk to other Business People – the goodwill for startups is amazing!

Business Concept with Growth Potential

• On Campus Innovation Centres – Universities and IoTs

– New Frontiers

– NDRC Launchpad

• Business Innovation Centres (BICs)

• Microsoft BizSpark Programme

When More Established

• Enterprise Ireland – Innovation Voucher – HPSU Investment – Competitive Start Fund – International Offices – Get Export Ready (FirstFlight) – International Selling Programme – Going Global Fund – Tendering

• Halo Business Angel Partnership • Seed Capital Relief • The Employment and Investment

Incentive • InterTrade Ireland Seedcorn

Competition

International Market (Technology/Knowledge) Orientation

LEADER Supports no longer available

MORE DETAIL Enterprise Agency Supports

Don’t forget the Soft Supports

Formerly branded as City & County Enterprise Boards

• CEBs provide direct grant-support to new and existing enterprises and promote entrepreneurship

• Focus on commercial micro enterprises

– Advice

– Mentoring

– Grants

– Refundable Aid

– Supports for Training & Growth

• For sole traders, partnerships, community or limited companies that fulfil the following criteria:

– Located within the CEB’s geographic area

– A business which on growth may or may not fit the Enterprise Ireland portfolio

– A business employing up to 10 employees

– A Manufacturing or Internationally traded services business (75% of trading income generated internationally)

– A Domestically traded Service business with the potential to trade internationally

– A domestically traded service being established by a female returning to the workforce or unemployed persons

Priming Grants

• The first eighteen months of setting up the business.

• The maximum Priming Grant payable shall be 50% of the investment or €150,000 whichever is the lesser.

• Grants over €80,000 and up to €150,000 shall be the exception and shall only apply in the case of projects that clearly demonstrate a potential to graduate to Enterprise Ireland and/or to export internationally.

• Key issue is Displacement

https://www.localenterprise.ie/Galway/Financial-Supports/Priming-Grant/

Business Expansion Grants

• The maximum Business Expansion Grant payable shall be 50% of

the investment or €150,000 whichever is the lesser.

• Grants over €80,000 and up to €150,000 shall be the exception and

shall only apply in the case of projects that clearly demonstrate a

potential to graduate to Enterprise Ireland and/or to export

internationally.

• In all other cases, the maximum grant shall be 50% of the

investment or €80,000 whichever is the lesser. Subject to the 50%

limit, a maximum grant of €15,000 per full time job created shall

apply in respect of any employment support granted.

• A business that had availed of a Priming Grant will be ineligible to

apply for a Business Expansion grant until 18 months after

approval/drawdown date of Priming Grant whichever is the later.

Feasibility Grants

• The maximum Feasibility / Innovation Grant payable for the BMW Region shall be 60% of the investment or €20,000 whichever is the lesser.

• The maximum Feasibility/ Innovation Grant payable for the S&E region shall be 50% of the investment or €20,000 whichever is the lesser

To be eligible for a Feasibility/Innovation Grant, you must have applied to Enterprise Ireland for an Innovation Voucher. A letter or email from Enterprise Ireland indicating refusal of Innovation Voucher is required with the application.

Limerick County Enterprise Board

Amount of Grant Aid

• Overall the cumulative level of grants to a micro enterprise must not exceed €150,000 over a three year period.

17

Refundable Aid + Equity Investment

• May be provided.

• Refundable Aid to be repaid over years 3, 4 and 5 at 3% interest rate per annum

Will not fund expenditure incurred before Grant is approved

• Supports for Early Stage Ventures

– New Frontiers (IoTs)

– HPSU Investment

– Mentors & Strategic Consultancy

– Information Library

– Get Export Ready

– Incubation Centres

– Innovation Vouchers

– Competitive Start Fund

– Female Feasibility

• High Potential Start Up (HPSU)

• Introducing a new or innovative product or service to international markets.

• Involved in manufacturing or international trading firms.

• Capable of creating 10 jobs in Ireland and realising exports of €1 million within three to four years of starting up.

• Led by an experienced management team.

• Headquartered and controlled in Ireland.

New Frontiers

• A national programme overseen by Enterprise Ireland to promote technology and knowledge led start up businesses

• Delivered by Incubation Centres attached to Institutes of Technology

• www.newfrontiers.ie

Get Export Ready

Get EXPORT Ready offers a systematic approach tailored to helping companies research, prepare and develop an export strategy including: First Flight One to One Assessment • Introductory workshops: Full day workshop including advice from Enterprise

Ireland overseas Market Advisers, case studies from experienced exporters, market relevant topics and information on the full range of Enterprise Ireland supports.

• Access to business intelligence: First Flight participants can access general and premium market information and advice (including information on markets, technologies, sectors and competitors) via our client Information Centre.

• Appointment of a Mentor: Participants can apply for a Mentor to assist in undertaking an Export Readiness Assessment and the development and implementation of a First Flight Action Plan.

• Advice on applying for other Enterprise Ireland supports for export development.

Innovation Vouchers Initiative

• Aims to Build Links between Small Businesses and Knowledge Providers

• Only applies to companies

• Voucher (€5,000) can be exchanged for Advice and Expertise from the Knowledge Providers

• Projects:

• Require Innovative Solution

• Provide Additional Value for the Business

• Have On-going Benefits

Universities

Institutes of Technology

State Research Agencies: e.g.Teagasc

www.innovationvouchers.ie

What can the Vouchers be used for?

Any kind of innovation such as:

• New Product Design / Development

• New or Improved Production Process

• New business model development

• New service delivery and customer interface

• New service development

• Tailored training in innovation management

• Innovation / technology audit Knowledge of:

• Efficiency audits, process change

• Supply chain management and logistics

• Product and service testing and economic impact assessment

Application Phase

Simple Form – 200 Words on the “Question the Enterprise

Wants to be Addressed”

Review of Applications by Enterprise Ireland

Voucher Issued

The Process

Project Execution Phase

Agreement Between Enterprise and Knowledge Provider

on Project Details

Work Undertaken: Company Invoiced

Knowledge Provider Refunded by Enterprise Ireland

Competitive Start Fund

• €50,000 for a 10% ordinary equity stake in the start-up company.

• Early stage companies, who meet the eligibility criteria, and who are active in the ICT & Industrial sectors including the following subsectors: Internet, Games, Apps, Mobile, SaaS, Cloud Computing, Enterprise Software, Lifesciences, Cleantech and Industrial Products.

https://www.enterprise-ireland.com/en/funding-

supports/Company/HPSU-Funding/Competitive-Start-

Fund-CSF-.html

Supporting Job Creation and other Enterprise Supports – A Revenue Guide

Supporting Job Creation and Other Enterprise Supports – A Revenue Guide March 2014

For each of the last six years, you can claim tax paid on your first €100,000 of income in each year if you invest in the share capital of a new qualifying company (conditions apply!)

Employment and Investment Incentive Scheme (EII)

• The EII has replaced Business Expansion Scheme and provides tax relief for investment in certain corporate trades

• Companies can raise €10,000,000 subject to a maximum of €2,500,000 in any one 12 month period from groups of investors

• The scheme allows an individual investor to obtain income tax relief on investments up to a maximum of €150,000 per annum in each tax year up to 2013

• Companies engaged in land development, operation and management of Nursing homes, financial activities and professional service Companies are still excluded

• See: http://www.enterprise.gov.ie/Publications/Financial-Support-for-Irish-Business.pdf?goback=.gde_1761157_member_137466210

When applying for Enterprise Agency Support

• You need to take time to find out what grant schemes you may be eligible for and the criteria that apply.

• There is no such thing as free money and your application will require anywhere from a few hours to several days …

This presentation was uploaded to slideshare by Donncha Hughes

January 2015

donncha@startuphughes.com

www.startuphughes.com

BASED IN GALWAY … see next slide

29 Source: http://galway.technology/page-galway-tech-map.html

Finally, check out:

Free mentoring for Startups and Microenterprise in the Greater Galway

area.

Technology Innovation Procurement

Support Fund

31

• Public sector organisation could apply to a €50 million Government fund to cover 80% of cost of new technology from qualifying Irish startup companies

• What criteria and conditions would apply?

• What targets should be set?

• Who responsible for management?

Idea … TIPs Fund