The Government should provide funds to small businesses to improve their use of IT, a report from the Small Business Forum (SBF) will state today.
In a report to be presented to the Minister for Enterprise, Trade and Employment Michael Martin, the Government will also be urged to adopt policies aimed at improving innovation and management training amongst small businesses.
Government sources say that the report will highlight the low take up of Information and Communication Technology (ICT) by small business, as well as the need to improve management training. Small firms should be able to avail of ICT audits and advice on how to improve their use of technology, the report will say. It proposes to monitor and encourage greater access to management training programmes.
It will also recommend the adoption by Government of a National Entrepreneurship policy aimed at increasing business formation, particularly amongst women. A suggestion to provide classes in entrepreneurship on the secondary school curriculum is expected to find support in the cabinet, according to sources.
To improve research and development activities in the small businesses sector, the report will also urge the Government to adopt a system of "innovation vouchers" to be provided to small businesses across all sectors of business. Under the scheme suggested in the report, vouchers would be exchanged for advice on innovation from accredited knowledge providers. It also proposes to set up a Knowledge Acquisition grant. The grant would allow traded services firms to access research in the Higher Education Authority and large corporations.
The SBF commissioned an extensive study of the sector from consultants DKM. According to the study, to be published tomorrow, the number of small businesses has grown substantially in the last 10 years and accounts for 97 per cent of all businesses.
Some 770,000 workers were employed in the sector last year, up from 435,000 in 1995. But growth in the sector has slowed since 2000, the DKM study finds. The government is concerned about challenges to small firms from stronger competition and rising costs. Between 2000 and 2005 the number of small firms rose from 220,000 to 250,000 while job creation increased each year by 3.2 per cent.
