2026-02-19

5. Deputy Tony McCormack asked the Minister for Enterprise, Tourism and Employment the specific supports which are available to indigenous SMEs operating in rural towns to ensure their long-term sustainability; and if he will make a statement on the matter. [13848/26]

As the Minister knows, small and medium enterprises are the backbone of our economy. Many of our young people end up getting their first job or first experience in these businesses. What specific supports are available to indigenous small and medium enterprises operating in rural towns to ensure their long-term sustainability?

I am committed to boosting the competitiveness and long-term sustainability of SMEs across the country by supporting them to reduce costs and improve their overall productivity. The Government now has a range of supports available to SMEs to save on energy costs, while improving their sustainability. The local enterprise offices, based within the 31 local authorities, offer advice, consultancy and grants in the areas of lean, green and digital. These grants focus on enhancing productivity and improving competitiveness in small businesses. Effective and efficient use of materials and resources can make a significant difference to the profitability of businesses, making them more sustainable and increasing their ability to respond to shocks in the economy. For example, the energy efficiency grant offers up to €10,000, or 75% of the costs, for small businesses to invest in technologies and equipment identified in a Green for Business, GreenStart or SEAI energy audit. The aim of the scheme is to reduce the impact of enterprises on the environment and, critically, their energy costs in the longer term. Enterprise Ireland has a broad range of supports that help rural SMEs improve productivity, embrace digital tools and transition to a low-carbon future, which will be essential for their long-term sustainability. These include the climate action voucher, which provides up to two days of independent training or advisory services to develop an initial sustainability action plan, and GreenStart, which provides up to €5,000 to fund the cost of hiring a sustainability consultant to introduce best practice sustainable systems to the business. Additionally, the Climate Toolkit 4 Business is a free online resource where SMEs can estimate and understand their businesses' carbon footprint. Businesses receive a tailored climate action plan specific to their business, with recommendations on the most impactful steps they can take, and directions to the Government supports to help them achieve these steps.

I welcome the work being carried out by the local enterprise offices and Enterprise Ireland. Their support and engagement with businesses is widely recognised and is making a real difference. However, when speaking to SME owners, particularly in rural towns, the message is clear: they need more practical, easy-to-access supports that help with the real cost of doing business. Many enterprises, especially those that provide services rather than manufacture products, feel they are often left in the wilderness when it comes to qualifying for certain schemes. Retailers, hospitality providers and other local service businesses are the backbone of our communities. They create jobs, drive footfall and sustain town centres, yet some believe that existing supports are not always designed with their needs in mind. One measure that is frequently raised is the reintroduction of a scheme similar to the Power Up grant, which provided straightforward assistance when businesses needed it most. Will the Minister give consideration to bringing back a targeted grant to help SMEs manage ongoing cost pressures? There is also growing concern about rising employment costs. While increases in the minimum wage are important, small employers are asking that future changes be linked more closely to inflation and introduced in a predictable manner, so they can plan ahead with confidence. Above all, we must continue listening to people on the ground.

I thank Deputy McCormack for his concern. I will make a few points. First, in addition to the sustainability grants, digitalisation allows businesses to either grow their revenue or reduce their cost base. That is a key way to change the business model. The critical thing about a grant is that the business does not change its model, which potentially leads to an unsustainable pathway, so it has to be done every single year. Businesses can increase revenue or reduce costs. That is how they get on a winning path. We are trying to continue with that. Our National Enterprise Hub has 250 supports. I would encourage all SMEs to log onto that to get the details on the range of supports. I would also point out that we have reduced the VAT rate on gas and electricity for SMEs, and we reduced the VAT rate on hospitality to 9% from 1 July. I am saying to businesses in the hospitality sector that that is 4.5% on their margins. I need 7% growth from them to ensure we get a very strong return of jobs and revenue back into the Exchequer. We also did a huge amount of work with the low-cost loans, increasing the microfinance loan to €50,000 and doubling the investment innovation voucher to €10,000.

No business should feel invisible when it comes to Government support, yet many service-based SMEs believe they are overlooked simply because they do not manufacture or export. These businesses face significant overheads before they even open their doors, from licences and regulatory requirements to insurance, energy, wages and other rising costs. Despite these pressures, they continue to provide local employment and play a vital role in keeping town centres alive. If we are serious about supporting them, we need to commit to delivering at least one new practical support specifically for service-based SMEs this year, and to engaging directly with business owners on the ground so the supports reflect the real challenges they face. Listening is important but it must lead to action. What clear, practical step can be taken now to reassure these businesses that their contribution is recognised, and that they will not be left behind?

I would be willing to work with the Deputy across government to enhance the supports the LEOs have been offering to SMEs, the small family businesses that make up two thirds of all the employment across our country and drive so much of the economic activity in our communities. We are absolutely looking to enhance supports for them. The Minister of State, Deputy Alan Dillon, and I are doing a lot of work in relation to the LEOs, Enterprise Ireland and the service level agreement that pertains to both. With regard to the midlands, I would point out that from quarter 3 of 2024 to quarter 3 of 2025, 3,900 new jobs were created in that locality. Critically, that means there are 3,900 families with an additional income that was not the case a year earlier. On the broader spectrum, budget 2026 was an exclusively enterprise budget. That will fuel the engine for the years ahead to ensure we can do so many things for employees and tackle our infrastructural deficits in the coming years. That will be critical to the success of our economy.