Minister for Small Business, John Perry T.D., has welcomed the Government’s continued commitment to the Small Business Sector in Budget 2014.
“Budget 2014 is another pro-small business Budget and is further proof of this Government’s commitment to this important sector.
“I am very happy that the voice of small business has been heard and is receiving very specific attention in Budget 2014. I am pleased that so many of the ideas and recommendations brought to Minister Noonan’s attention, through the Advisory Group on Small Business and the High Level Group on Business Regulation, both of which I Chair, have been addressed in yesterday’s Budget.
“Micro and small enterprises are a central part of our economy, and their ability to succeed and grow underpins our future potential for jobs, growth and prosperity. 98.5% of all firms are small and employ over 650,000 people throughout the country.
“Budget 2014 will enable the continued delivery of over €2 Billion in new, non-bank credit schemes, targeted at the full range of businesses from micro-enterprises through SMEs to mid-sized Irish exporting businesses and high-growth technology firms, including the micro-finance scheme, credit guarantee scheme, NPRF SME schemes, development capital scheme, seed and venture capital scheme.
“This Government is now also putting in place a major package of new supports for small business start-ups and existing small businesses. This package includes €3.5 Million in additional funding for the CEBs/LEOs and a package of measures to support start-ups. This will help to support the expected creation of a further 4,500 jobs in 2014.
“This funding will further support the important role of the LEO’s one-stop-shop for businesses, to be located in every community, to ensure that there are locally accessible supports available to nurture entrepreneurship and promote the creation and maintenance of employment.
Further job-creation measures included in Budget 2014 include:
· Retention of the 9% VAT rate for the hospitality sector – to support and encourage growth in small businesses in the tourism sector;
· Air Travel Tax reduced to 0% from 1st April – to encourage the development of new routes and therefore lead to more passengers and the creation of additional jobs in the tourism sector;
· VAT anti-fraud measures – to protect compliant business from unfair competition by tackling the shadow economy.
Minister Noonan also announced a package of measures aimed at supporting start-ups and growing businesses, including the following:
· Start Your Own Business Scheme (SYOB): This measure is being introduced to encourage individuals who are long-term unemployed to start their own unincorporated business. A two year exemption from income tax up to a maximum of €40,000 per annum is being provided for individuals who have been unemployed for at least 15 months prior to starting their own business;
· Capital Gains Tax relief to encourage investment in new business;
· Removal of the Employment and Investment Incentive from the Higher Earners Restriction, to incentivise higher levels of investment in SMEs;
· Increasing the threshold for the Credit Review Office from €500,000 to €3 Million;
· Supporting cash-flow in the small business sector by increasing the VAT cash threshold from €1.25 Million to €2 Million;
· Building Business Capacity – A training and mentoring programme consisting of 2 days dedicated off site training tougher with export mentoring support, to enhance SMEs business and financial capacity in relation to understanding and utilising a broader range of financial products, as well as equipping them with the necessary tools to make a strong business case when applying for credit. The programme will be launched on a pilot basis with 1,000 SMEs taking part next year;
· SME Communications Strategy - to increase awareness of State supports amongst SMEs. This strategy will also ensure that there is a greater awareness amongst businesses of the soon to be re-launched credit guarantee scheme;
· A package of improvements in the R&D tax credit aimed particularly at small Irish companies.
“Through Budget 2014 we will be able to provide continued supports for the small business sector – a sector that is central to economic recovery, job creation and the future development of the Irish economy.”