Chapter 7:
Action on Small Business
7.1 - Small business is a key constituent of economic growth in this country. The challenges presented in strengthening this sector will be confronted to ensure that its contribution to employment and wealth generation is developed to the fullest possible extent.
Awareness Programme
7.2 - An awareness programme will be implemented to highlight the importance of small business to the economy.
7.3 - The Enterprise Link Service will be extended beyond its present telephone only service level.
Access to Finance
7.4 - The success of the Small Business Expansion Loan Scheme and the Access to Finance Scheme will be examined and the scope identified for introducing new finance and support schemes for start-ups and expanding firms, including agricultural enterprises and micro business.
Self Employed
7.5 - The parties to the Partnership recognise the significant contribution to employment growth of long-term unemployed people setting up in self-employment through the Back to Work Allowance. Measures will be considered, during this Partnership, to retain and build on this potential.
Administrative Simplification
7.6 - A national strategy will be introduced, in line with the SMI, to ease the administrative burden. The strategy will include:
Prompt Payment
7.7 - In recognition of the importance of cash-flow to small business, prompt payment legislation, requiring public sector bodies to settle their accounts in a timely manner, will be enacted in 1997. This legislation will include an automatic entitlement to interest for suppliers where accounts are not paid on time.
Insurance Costs
7.8 - Following the publication of the report, Economic Evaluation of Insurance Costs in Ireland, the Government established a Special Working Group to progress the establishment of a Personal Injury Tribunal. The Government will move swiftly on the Group's recommendations in consultation with the Social Partners and other interested organisations.
Small Business Support
7.9 - The Government is committed to helping small firms access private and public markets in Ireland, in the EU and in other international markets. Under Measure 2 of the Small Business Operational Programme, by way of encouraging additional small firms into the public procurement sector, a range of initiatives will be implemented which will help small business to identify new supply and service opportunities and will assist in improving the professionalism and expertise of public purchasers.
Training for Small Enterprises
7.10 - It is recognised that small business has special needs in the training area. Proposed actions in areas such as certification for training (6.8) will be of particular relevance to small business. The Training Support Scheme (TSS) will have greater targeting for smaller companies including those seeking to enter overseas markets. There will be greater emphasis and support by the County Enterprise Boards (e.g. PLATO) in the meeting of the training needs of small/micro firms.
Business Taxes
7.11 - Chapter 3 of this document which deals with taxation will improve the environment for business and reward entrepreneurs for risk-taking. The taxation measures will be particularly beneficial for small business, and build on the Recommendations of the Task Force on Small Business.
Networking
7.12 - To counter the obstacles to the growth of Irish-based companies caused by the small size of many of these companies, an action programme based on the NESC report; Networking for Competitive Advantage, will be developed by Government to promote the benefits from inter-firm co-operation. The programme would encourage firms to cooperate in activities which would be outside their scope individually and to come together to develop joint solutions to common technological problems. Action in the areas of purchasing, product development, marketing, training, R&D, technology and linkages have been suggested. The Government will establish a steering group, under the aegis of the Department of Enterprise and Employment, to include Social Partners and agency representation, to design and oversee the implementation of a pilot networking programme in selected sectors and regions. The group will draw on the work in the NESC report and on the experience of State Agencies and business associations in this regard.
Representation
7.13 - Small business representatives will participate in the Competitiveness Review Mechanism (6.4) with a particular emphasis on the promotion of an enterprise culture for small business.
