Could a Grant be the Answer to Small Firms
Could a grant be the answer to small firms' credit issues?
Despite the country no longer being in recession, credit for small businesses in Ireland remains tight. However help could be at hand in the form of various grants.
Small businesses in Ireland were dealt a boost earlier this month with the news that the country has finally lifted itself out of recession.
Official figures show that GDP increased 2.7 per cent in the first three months of the year.
However, small businesses in the country will also be aware that the road to recovery is a long one and therefore credit conditions could remain tight for quite some time.
Indeed, a recent report from the Small Firms Association revealed that confidence among small businesses is low, with more than half rating their performance as "poor" or "very poor".
Commenting on the crisis of confidence, Avine McNally, the organisation's acting director, said: "Small business sentiment has remained unchanged as many still remain under pressure as a result of being the victims of slow payment by creditors, the high cost of doing business and at the root of it all, cashflow problems."
However, help could be at hand for a number of the country's smaller organisations in the shape of various grants.
While this is by no means an exhaustive list, TaxAssist Accountants has had a look around to let businesses know what sort of help is available.
Earlier this week, the European Commission announced the launch of a new €6.4 billion investment fund for research and innovation.
The fund is set to prioritise smaller firms and will see them benefit from at least €800 million.
Maire Geoghegan-Quinn, commissioner for research, innovation and science, urged the country's smaller businesses to make the most of the new fund.
She commented: "[This] is big money and it has never been needed more than now.
"We need to keep investing in research and innovation not despite the crisis, not despite the fiscal problems we face, but because of those challenges. There is no more efficient investment in the future than research and innovation."
Business plan specialist Teneric has also told firms that more than 3,000 grants can be available to businesses at any one time.
The firm advised that grants can be sought from the European, national and local authorities.
However, it advised firms to research their chances of success before wasting time and money on the application process.
In a list of application tips the organisation warned that competition for grants can be fierce and urged firms not to "pin all their hopes" on such funds.
"Make sure you can actually deliver results, as the grant can be withdrawn if you don't achieve agreed targets [and] consider how you will match fund the grant, as it will rarely cover more than 50 per cent of the project cost," the company added.
Another group of bodies offering small firms a financial boost are County & City Enterprise Boards (CEBs), which offer a range of financial support services.
The organisation offers Priming Grants to sole traders, partnerships and limited companies that fill certain criteria.
Firms employing fewer than ten people and operating in the manufacturing or trade sector could be eligible for a grant of 50 per cent of the total investment needed up to €150,000.
The body also offers Business Expansion Grants of similar amounts to businesses that are located within the CEB's geographic area.
"CEBs provide direct grant-support to new and existing enterprises and promote entrepreneurship, capacity building and women-in-business at local level, to micro enterprises in the commercial sphere," the organisation explained.
"The CEBs are uniquely positioned to understand local needs and know the background and track record of those applying for support and assistance."
Enterprise Ireland is another organisation that could offer much-needed support to Ireland's small business community.
The body offers grants and funding solutions to companies with new ideas and expansion aspirations as well as those in need of stability.
Research and development grants are also available as well as funds for new firms starting out in business.
Whichever route business owners decide to take, they could be encouraged to seek specialist advice from a tax accountant to make sure their business affairs are in order first.
