Helping to sustain SMEs through Covid-19 pandemic
IRELAND’S small and medium-sized enterprises are often referred to as the backbone of the economy. That understates their importance. According to CSO figures, the SME sector accounts for 99.8pc of business in the economy and employs more than two-thirds of its workers. As a country our economic development depends on these SMEs, which span every county. They are in fact our central nervous system, controlling the economic and social fabric of every part of the island.
It’s why the Government is taking unprecedented actions to support and sustain them through Covid-19. Enterprise Ireland is playing a central role in this work. Since the pandemic was announced we have launched a raft of targeted supports for SMEs across Ireland.
Unlike our traditional business supports, which are aimed at Enterprise Ireland client companies, the new Covid-19 supports are available to domestically focused SMEs employing 10 or more in manufacturing and internationally traded services. It is noteworthy that these new supports are not just available to SMEs that are on a clear export journey but also to those whose primary focus is domestic too.
Our objective is to help sustain as many SMEs as possible, to support regional enterprise throughout this period.
In these difficult and uncertain times we want them to come and talk to us about the new suite of business supports we have launched in response to Covid-19, whether or not they are Enterprise Ireland client companies.
We know from speaking to businesses that many are starting to experience cash flow and liquidity challenges. As things progress and the economy starts to open up again we expect more of those issues to become apparent.
Right now there is a definite need for strong financial planning. For many the first step is to secure a Covid-19 Business Financial Planning grant. This new support, which is 100pc grant-aided, is worth up to €5,000 to allow SMEs engage the services of a financial consultant.
He or she can help them formulate a resilient financial proposition that they can take to Enterprise Ireland, a bank or any funding authority, to help secure the company in the short to medium term.
It’s a very strategic and important initiative which is why, to date, Enterprise Ireland has approved a significant volume of applications for SMEs around the country.
Once an SME has its financial plan in place, the next step may be to consider the new €180m Sustaining Enterprise Fund (SEF).
This dedicated Covid-19 business support is designed to ensure SMEs have the short-term liquidity they need to get them through this difficult period.
It can provide larger SMEs with up to €800,000 to help with liquidity or cash-flow issues.
It is structured as a repayable advance provided over a five-year term, with repayments commencing in years four and five.
Enterprise Ireland has launched a special version of the SEF which is especially suited to smaller businesses too. The SEF-Small Enterprise support provides financial support to those in need of a quick capital injection, of up to €50,000, to support business continuity.
Applications can be made online, the process is quick and efficient and, again, you don’t have to be an Enterprise Ireland client company to secure it.
That applies to the fourth element of our suite of Covid-19 business supports too, the Lean Business Continuity Voucher.
We know SMEs face practical costs as they adjust to life with Covid-19. The Covid-19 Lean Business Continuity Voucher, which is worth €2,500, can be used to help identify and make the changes required. These could be anything from planning for social distancing to IT business continuity challenges or HR issues.
SMEs throughout the regions can find all the information they need online at enterprise-ireland.com or from their local regional offices.
It’s vital that they do, because there has never been a point when SMEs have been more important to economic development in the regions than now. We need to sustain as many as possible, to enable our regions to return to growth once we have come through this crisis.
They are, after all, the lifeblood of regional enterprise.
Visit here for details of each of Enterprise Ireland’s regional offices nationwide: enterprise-ireland.com/ businessresponse
Mark Christal is the manager of the Regions and Entrepreneurship division in Enterprise Ireland