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).

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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