In this week’s article we will look at the organisations providing support to entrepreneurs in the process of setting up a business. These groups can provide guidance and support to entrepreneurs from the conception of a new business through to its realisation.
Organisations providing support include:
Galway County and City Enterprise Board (www.galwayenterprise.ie )
The Galway County and City Enterprise Board (and its sister boards throughout the country ) offers a wide range of supports to individuals who want to start up their own business. If an individual has a business idea and employs fewer than ten people then the Enterprise Board should be able to assist. It can help with business plans, feasibility studies, grant aid and management training. It also runs a mentoring programme.
City and County Enterprise boards provide employment grants to start up companies. The grant is used to supplement the cost of employees. There is a maximum grant of €7,500 per employee and this is paid in two parts. The first half of the grant is paid when a person is taken on (on a full time basis ) and registered for PRSI. The second half of the grant is payable six months later, if the person is still in full time employment.
The Boards can also assist with the initial cost of investment in capital. A capital grant may be used to purchase equipment and machinery or to refurbish or outfit a building. Up to a maximum of 50 per cent of the cost of capital or €75,000 which ever is the greater may be provided. The capital grant cannot be used to fund the purchase of a building.
To support the development of an idea, the boards offer Feasibility Study Grants. The purpose of a feasibility study is to test the viability of the business proposal. Up to 60 per cent of the cost may be funded up to a maximum of €6,350.
Westbic
Westbic, a business and innovation centre, provides supports to new and expanding businesses. Its experienced team provide advice and aid through all stages of a business’ growth. In particular it advises on the development of a business and its financial plan. It can also support the business as it grows by providing guidance across a wide spectrum of areas from cashflow forecasts to human resource requirements. Depending on the business idea, Westbic can help to secure grants, seed capital finance, and investment from private investors through the Business Angel Partnership. www.westbic.ie
Enterprise Ireland (www.enterprise-ireland.com )
Enterprise Ireland provides advisory and financial support to High Potential Start-Up businesses. A High Potential Start-Up (HPSU ) is a business that is:
Manufacturing an export focused product or offering an internationally tradable service;
Based on a technical advantage or a pioneering or innovative idea;
Likely to realise annual sales of €1m and employ 10 or more within three years of start-up; and
Headquartered or controlled in Ireland.
Enterprise Ireland provides support in three stages of the start-up development process firstly starting a business, secondly challenging and validating the business idea and finally seeking advice and funding to develop an investor-ready business plan.
Údarás na Gaeltachta (www.udaras.ie )
Údarás na Gaeltachta provides support to enterprises setting up in Gaeltacht areas. It offers qualifying businesses and companies a range of assistance and incentives to start up, locate or expand in the Gaeltacht region. In addition to financial incentives, it can assist investors through all stages of start up and development, from site identification to help with recruitment, training and legal requirements.
It provides a range of grant-aid packages for new and start up companies, which covers areas such as capital investment, marketing, research and development, training and employment. Under the Employment Grants’ Initiative, Údarás may provide grant aid to businesses to cover the cost of employing staff on a full-time or part-time basis. The amount of aid payable will vary depending on the required skills level and related staff costs. The geographic location of the project will also impact on the amount of aid payable.
If an entrepreneur is located in the Gaeltacht and owns or manages a small limited company and wants to explore a business opportunity or obstacle, he can apply to Údarás na Gaeltachta for an Innovation Voucher worth €5,000. The voucher can be exchanged for advice and expertise from participating knowledge providers (universities, institutes of technology, or publicly funded research bodies ).
Western Development Commission (www.wdc.ie )
The Western Development Commission (WDC ) is a statutory body promoting economic and social development in counties Donegal, Sligo, Leitrim, Roscommon, Mayo, Galway and Clare. The WDC is responsible for the management and administration of an investment fund which provides risk capital by way of equity and loans, to projects and businesses. The WDC seeks a financial return on its investments, as well as a social dividend such as enhancing quality of life and the provision of employment.
There are two main criteria that a project must meet to be considered for funding under the WDC Investment Fund.
It must be commercially viable and display an ability to provide an appropriate financial return for the risk undertaken.
There must be social benefits accruing to the area served by the project and the region as a whole as a result of the investment, including employment potential and enhancing quality of life.
Bord Bia (www.bordbia.ie )
Bord Bia can provide food producers with details of exports, production, quality standards, health regulations and controls. Due to it’s in depth knowledge of the Irish food production market, it can put entrepreneurs in touch with companies with similar areas of interest.
Teagasc (www.teagasc.ie )
Teagasc is the national body providing advisory and training services to the agriculture and food industry and to rural communities. Teagasc can provide training, advisory and research services to rural and agricultural enterprises.
Fáilte Ireland (www.failteireland.ie )
Fáilte Ireland, the National Tourism Development Authority, provides a wide range of services to businesses working in the tourism sector from the implementation of best practises to marketing the business itself.
Additional Points
Where individuals are employed on a back to work allowance, there is an opportunity to avail of an exemption from PRSI for the first two years of his/her employment. Further information is available on www.welfare.ie Under the de Minimis rule the European Union allows aid to be given outside the normal rules for state aid provided that the cumulative aid under the de Minimis rule to any one applicant, from whatever state organisations, does not exceed €200,000 in any three fiscal year period.
A good source of information as to the types of grants available in addition to general business information is www.basis.ie
In next week’s article will look at alternative sources of finance for start up enterprises including the Business Angel Partnership, bank finance and the seed capital scheme.
