Government Support for Businesses (Leaving Cert Business): Revision Notes
Government Support for Businesses
The Irish government provides extensive support to businesses through various state agencies that distribute grants and investment funding. These agencies play a crucial role in promoting business development, encouraging entrepreneurship, and attracting foreign investment to Ireland.
State agencies providing business support
Several key state agencies work to support Irish businesses at different stages of development:
- Local Enterprise Offices (LEOs) - Support small local businesses
- Enterprise Ireland - Develops indigenous Irish businesses for export
- Industrial Development Authority (IDA) Ireland - Attracts foreign investment
- Sustainable Energy Authority of Ireland (SEAI) - Provides energy-related grants
- Project Ireland 2040 - Major government funding programme
Key Advantage of Grants
Grants are a significant incentive for businesses because they do not need to be repaid. The amount of funding depends on factors like business size, purpose, location, and whether the business is indigenous or international.
Local Enterprise Offices (LEOs)
Local Enterprise Offices operate in every county across Ireland and focus on supporting micro-businesses with specific needs and development goals.
What they support:
- Businesses with ten or fewer employees
- Feasibility studies for new business ideas
- Business expansion projects
- Brexit support initiatives
- The European globalisation fund (supporting employees affected by globalisation)
Educational Outreach
LEOs also promote enterprise in schools through the Student Enterprise Programme, encouraging young people to develop entrepreneurial skills and fostering the next generation of Irish entrepreneurs.
Enterprise Ireland
Focus on Export Growth
Enterprise Ireland is a state-owned economic development agency responsible for developing indigenous Irish businesses with ten or more employees that want to grow their export sales.
Key services provided:
Funding and investment:
- Regional Technology Cluster Fund
- Online Retail Scheme
- Regional Enterprise Development Fund
- Can provide equity investment by taking a share in the business
Mentoring and support: Enterprise Ireland offers mentoring programmes where experienced business professionals provide guidance, share knowledge, and give feedback to less experienced entrepreneurs.
International expansion: The agency has offices abroad that assist Irish companies in growing their exports by:
- Providing marketing services
- Conducting market research
- Introducing potential customers overseas
- Operating trade missions, trade fairs, and events to connect Irish businesses with international markets
Technology development: Enterprise Ireland supports companies and researchers in higher education institutes to develop new technologies and processes that create jobs and increase exports.
Industrial Development Authority (IDA) Ireland
Foreign Direct Investment Focus
IDA Ireland is responsible for attracting and developing foreign direct investment (FDI) in Ireland. Foreign direct investment occurs when a company owns and runs another company in a different country.
Examples of FDI in Ireland: Companies like Boston Scientific (US operations in Galway, Cork, and Clonmel), Google, Intel, Microsoft, and Facebook have all worked with IDA Ireland to establish operations in the country.
Support provided:
- Grants for capital investment, employment, training, research and development, and innovation
- Lean/Green Business Offer for operational efficiency and sustainability
- Information and statistics about key business sectors and locations
- Property advice for international investors
- Assistance with business setup in Ireland
- Building links between international businesses and Irish education and research centres
Sustainable Energy Authority of Ireland (SEAI)
National Energy Authority
SEAI is Ireland's national sustainable energy authority, offering grants to help homeowners, businesses, communities, and large industry reduce energy costs and carbon emissions.
Types of grants available:
Home energy grants:
- Insulation Grants
- Heating Controls Grant
- Solar Electricity Grant
- Solar Water Heating Grant
- Heat Pump Systems Grant
Business grants:
- Dairy Farm Grant
- Lighting Support Scheme
- EXEED Certified Grant
- Project Assistance Grant
Electric vehicle grants:
- Electric Vehicle Purchase Grant
- Electric Vehicle Home Charger Grant
Project Ireland 2040 funding
In 2018, the government launched billion in funding for development under the Project Ireland 2040 plan. This major initiative focuses on:
- Rural development
- Urban regeneration (planned improvement of buildings, public facilities, and infrastructure in cities)
- Climate action
- Innovation
The funding is allocated competitively to the best projects and is available to state agencies, local government, businesses, educational institutions, and chambers of commerce.
Chambers of Commerce Explained
Chambers of commerce are associations of businesspeople that protect and promote the interests of local businesses in their city, county, or region (e.g., Kilkenny Chamber of Commerce).
Impact on Irish businesses
Government support through state agencies and grants creates significant benefits for Irish businesses across multiple areas:
Sales impact:
- Advice and grants encourage businesses to start up and expand, increasing sales
- Grants attract transnational corporations (TNCs) to Ireland, who may source raw materials from local firms
- This reduces costs for TNCs while increasing profits for indigenous suppliers
Cost benefits:
- Grants help cover some start-up costs for new businesses
- They support business growth and survival during critical early stages
- The non-repayable nature of grants provides crucial financial relief
Future opportunities:
- Grants encourage indigenous businesses to grow and expand
- Government support attracts foreign direct investment to Ireland
- This increases employment opportunities and builds confidence in the economy
- Creates a positive cycle of economic growth and development
Key Points to Remember:
- State agencies provide various types of grants that don't need to be repaid
- LEOs support small local businesses with ten or fewer employees
- Enterprise Ireland focuses on helping Irish businesses grow their export sales internationally
- IDA Ireland attracts foreign companies to invest and operate in Ireland
- SEAI provides grants specifically for energy efficiency and sustainable technologies
- Project Ireland 2040 represents billion in government funding for national development