Local Enterprise Office Tipperary Who To Talk To Roscrea Eleanor Forrest 21 May 2015.

Local Enterprise Office

Tipperary• Who To Talk To Roscrea

Eleanor Forrest• 21 May 2015

Introduction

• On 14 April 2014 the Government dissolved the 35 County & City Enterprise Boards and established 31 Local Enterprise Offices within the Local Authorities. The LEO operates under a Service Level Agreement between Enterprise Ireland and the Local Authority and will continue to grow and develop micro and small business at local level.

• The Local Enterprise Office is the First Stop Shop for anyone seeking information and support to start or grow a business in Ireland.

• A Government initiative under the Action Plan for Jobs, the network of Local Enterprise Offices will deliver an enhanced and more integrated support service for micro and small business and will build on the significant achievements of the County & City Enterprise Boards over a 20 year period.

Service Level Agreement & Metrics

The Service Level Agreement covers 4 distinct areas: Business Information and Advisory Services Enterprise Support and Development Services Entrepreneurship Support Services Local Economic Development Services

Metrics Annual targets/ metrics are agreed with Enterprise Ireland against

which performance will be measured The LEO will work with an agreed portfolio of Companies to scale

them and assist their graduation to the Enterprise Ireland ladder of supports.

Enterprise Actions consistent with the County Economic Plan (LECP)

Primary Responsibility

• Commercially viable projects with job creation potential• Creation and development of sustainable micro-enterprises• Projects – up to 10 employees• Capital investment – unlimited• Priority to enterprises in the manufacturing & internationally

traded services sector with the potential to develop strong export portfolios.

• Salary support may be offered to unique Tourism services, focused predominantly on generating revenue from overseas visitors.

• Locally traded enterprises promoted by the unemployed, recently removed from Financial Instruments and new protocol in place with SICAP. Local circumstances will feature and projects dealt with on a case by case basis.

Supports • Selective Financial Intervention• Financial assistance is awarded under three headings

﹣Priming Grants (<18 months trading) ﹣Business Expansion Grants (>18 months )﹣Feasibility/Technical Assistance Grants

• Entrepreneurial and Capability Development﹣Enterprise awareness / enterprise culture﹣Advice, information, counselling, mentoring, training. ﹣Management Development Programmes (50 initiatives 2015)

Ineligible Enterprises

• Retail, Wholesale, Distribution• Personal Services (eg. Hairdressers, gardners, creches etc.)• Professional Services (Solicitors, Accountants etc.)• Construction, Local building services

• REASON: Considered that support for such sectors will give rise to unacceptable deadweight where projects will proceed anyway or lead to displacement

Priming Grants

• 50% of investment to a max of €150,000 whichever is the lesser.• Note: €150,000 will be exception in most cases it will be 50% of

investment to a max of €80,000 whichever is the lesser. Grant applications in excess of €40,000 will be referred to Enterprise Ireland for adjudication. All grants of a value of over €40k or a cumulative value of €80k over three years requires EI approval.

• Subject to the above limits a max grant of €15,000 per job created shall apply.

• Eligible clients may be awarded a Priming Grant in the first 18 MONTHS of setting up

• Support can cover all business costs directly attributable to starting or growing & developing the business i.e. Capital, Salary Costs, Rent etc

Business Expansion Grants

• 50% of investment to a max of €150,000 whichever is the lesser.• Note: €150,000 will be exception in most cases it will be 50% of

investment to a max of €80,000 whichever is the lesser. Grant applications in excess of €40,000 will now be referred to Enterprise Ireland for adjudication.

• Subject to the above limits a max grant of €15,000 per job created shall apply.

• Business must be in operation longer than 18 Months. A business that has availed of a priming grant will be ineligible to apply until 18 months after drawdown of priming grant,

• Support can cover all business costs directly attributable to growing & developing the business i.e. Capital, Salary Costs, Rent etc.

Eligible Costs - Priming Grants & Business Expansion Grants

1. Capital Costs. Fit out of workspace, office equipment, machinery (new & second hand), computer costs hardware and software. Acquisition and construction of buildings and pruchase of mobile devices eg. laptops, mobile assets, mobile phones are excluded.

2. Salary Costs- Two instalments. Maximum €15,000 for positions paying €40,000. Minimum wage - grant €7,500. Appropriate in between scales. (option to pay in 2 moieties where circumstances necessitate)

3. Rental/Accommodation Costs – 1st year. May be paid up-front. If space is already subsidized then differential between market and subsidized rate is only eligible

4. Utility Costs – Installation/Upgrade of Telephone & Broadband (mobile phone costs excluded).

5. Marketing Costs – Packaging, Brochures, Business Cards, Trade Fairs, Website Design & Development, Other Marketing Initiatives

Eligible Costs (cont’d)

6. Consultancy Costs - Design Fees, Patent Costs, Accountant, Legal Fees

7. Business Specific Training - Specific training integral to the operation/success of the business e.g. AutoCad. (Training may be certified or non-certified)

Feasibility Grants

• 50% of investment to a max of €30,000 or €15,000 whichever is the lesser

• Eligible Expenditure includes •Product/ Prototype Development•Market Research Consultants fees•Financial Evaluation•Own Time €400 p.w. (Capped at 20% of study costs)•Overseas Travel•Domestic Travel & Subsistence •Telephone/ Admin etc. Paid based on vouched expenditure & Report

*Grants up to €10k will not involve a refundable element

A cap of 20% of allocation applies to Feasibility Study Grants from 2015

Refundable Aid

• Each Local Enterprise Office has an obligation to ensure that at least 30% of total approvals must be in refundable form.

• This means that grant aid will be structured so that it is part grant and part loan. This loan is interest free and generally repaid by agreement over a maximum of 3 years.

Evaluation & Approvals Committee

• Membership prescribed in the Service Level Agreement • County Manager/ Chief Executive or Nominee • A Representative from Enterprise Ireland (Regional Director or

Nominee)• 5 Individuals with specific business expertise. • Public Call for expressions of interest – February 2014• Selection in conjunction with Enterprise Ireland• Membership drawn from business, banking, EI, reflecting

geographic spread, gender and Chaired by Director of Community & Economic Development

• 6 meetings per annum

The Project Evaluation Process – 6 Core Principles

• Commercial Evaluation: Is there a market for the proposed product or service and can the project secure a requisite share of the market?

• Financial Evaluation: Can the project secure and repay the requisite financial investment (fixed and working capital)

• Management Evaluation: Can the promoters and their management team successfully address the business development and business as usual agendas of the project?

• Technical Evaluation: Are there any technical barriers to successful implementation (product or process) and can they be overcome?

• Economic Evaluation: Is there a potential economic and exchequer return on the taxpayers investment – jobs direct, indirect?

• Funding Evaluation: How can taxpayers money best be used to support the project and optimise its potential?

BUDGETS/ Exchequer Allocations -Tipperary

• MEASURE 1 – €366,808• MEASURE 2 – €368,952• Own Resource Income (projected) - €30,000• REFUNDABLE AID – €717,075• Online Trading Vouchers (42) - €105,000• IBYE (€50,000 min.)Note : These are indicative amounts

Sample projects supported

Manufacturing• Food production – cheese, convenience foods, sauces, rubs, relishes,

preserves, meat packaging/labelling, chocolate, confectionery, wellness etc.

• Stainless steel- kitchen equipment, railings, shop fittings• Engineering, draught stops, flue master, components, fencing, wind

breakers etc • Fashion Design / millinery • Stained glass, ceramics & crafts• Jewellery/ craft / pottery/ ceramics• Furniture / specialised joinery for UK (contracts)• Software Development & ICT solutions (manufacturing systems,

safety management programmes, apps etc) • Cosmetics, Pharma services, etc

Sample projects supported

• Service• Multi-media, recording studio/ a.v. systems/ power supply for events • Software applications/ apps/ on line businesses – Translations, legal services

on Line• Secure shredding • Marketing & Graphic design services• Design House – web, graphic & print • Quality System Installation• Projects promoted by the unemployed / women re-entering the workforce • Upholstery• (e.g., air fresheners, fire wood, business & administration services, poultry

processing)

Progress to 22 April 2015

Selective Financial Intervention• No of applications 22• Applications approved 19• Grants approved €323,196 (8 Priming, 6 Business Expansion & 5

Feasibility) • Investment projected €1.1m• Average grant - 29%• Jobs approved 21 (Cost per job € 15,390)

Entrepreneurial & Capability Development • 876 participants (394 male & 482 female)• Management Development 82 firms• Business Skills Training Courses 287 participants on 21 Courses.

Oifig fiontair Áitiúil _______

Local Enterprise Office __________

Entrepreneurial &

Capability Development

First Stop Shop

• Enterprise Awareness – Enterprise Week 18-22 May• Advice, Information, Linkage and Assistance• Start Your Own Business Courses & Boot camps• Kickstart-a new initiative with NTLP & STDC (for

unemployed thinking of starting a business) • Business Skills Training Courses• Management Development• Mentor & Temporary Advisers• Schools Programmes• Women in Business

Enterprise Week

Grant SchemesTailored to Business Needs

• Website Development - €1,000 or 50%• Exhibition Grants - €1,000 or 50%• Export Market Support - €3,000 or 50%• Market Entry Support • Branding and Design • Community Enterprise Initiatives• Training Supports – 50%

﹣Subject to no other Agency funding

Additional Activities / Collaborative Actions

• Workspace Studies x 2 (Roscrea & County Tipperary) • Training Needs Analysis • Link to EI & Bord Bia Schemes such as

• Get Export Ready • Hi Start • Innovation Vouchers • New Frontiers • Food Academy

• County Networks • Women’s Networks• Green Business Network • Tipperary Food Producers

Micro FinanceTarget 10 application per annum

• Set up by the Government to provide loans to newly established or growing microenterprises, with commercially viable proposals that do not meet the conventional risk criteria applied by commercial banks.

• MFI is ‘additional’ lending which would not otherwise be provided by banks. Banks remain the primary and dominant supplier of finance to microenterprises. Applicants Less than 10 staff & turnover and/or Balance Sheet < €2m

• Applicants should have a viable business plan and be able to demonstrate that they have been refused conventional bank credit.

Loans from €2k to €25k (average loan size €16k at present) Term three years Interest rate is 7.8% Initial Assessment by LEO Staff Progress to end of March 5 applications, loans of €44,999 approved

Online Trading Vouchers To Support SME’s enhance their online trading presence.

ONLINE TRADING VOUCHERS to the value of €2,500 are now being made available under the National Digital Strategy with a €5m fund available nationally. 2015 allocation of 42 vouchers for Tipperary.

• Who is Eligible ﹣ Businesses – any sector (with a limited online presence)﹣ T/o < €2 Million﹣ < 10 staff

• What is Eligible

﹣ Development or upgrade of an e-commerce website such as implementing online payments or booking systems

﹣ Purchase of internet related software﹣ App development ﹣ ICT consultancy for developing an online strategy ﹣ Web based advertising campaigns

• 50% of Eligible Expenditure (excluding VAT)

• All applicants will receive one to one mentoring to help formulate an eCommerce strategy for their business.

Outreach Offices/ Clinics

• Thurles Technology Park• Tipperary Town• Carrick On Suir• Roscrea • Anywhere in the County by appointment

We are open for business – encourage constituents to use our services

Where to Find Us

Local Enterprise Office Tipperary Ballingarrane House, Cahir Road, Clonmel

&Civic Offices,

Limerick Road, Nenagh

Telephone: 07 61 06 5000Email: [email protected]