Govt 'not pro-enterpise' - SME study

The Government's policy is aimed mostly at foreign investment, a new survey of small and medium enterprises said today.

The study, carried out by the Irish Small and Medium Enterprises Association (Isme), found only 18 per cent felt the Government was pro-enterprise, with 89 per cent believing that foreign direct investment was the main target. Only 2 per cent thought SMEs were the target.

More than 700 firms were questioned for the research. Isme said little effort had been made to address the concerns of smaller businesses or or supporting development agencies specifically aimed at SMEs.

This was reflected in the level of engagement with such agencies. Only a quarter of SMEs are involved with development agencies, the survey found, with 54 per cent saying they had never been a client of any agency. In contrast, 82 per cent said the agencies were needed.

"These results are a shocking indictment of the current Government and their policies, clearly showing that the SME sector feel seriously let down with regard to the promotion and support of the sector. The 'multinational at all costs' policy, with its photo opportunities for ministers continues to hold centre stage, with the crumbs being left to local small and medium businesses," said Isme chief executive Mark Fielding.

"At the end of the day it is SMEs that will create a sustainable indigenous economy, not larger multi-nationals, subject to the whim of their foreign shareholders. Of course the two should co-exist, but the bias at the moment is heavily weighted against the former."

The body called for a review of the role of the enterprise development agencies and support levels f that matched the best seen in other EU countries.

"For far too long the SMEs have been the Cinderella sector. It is essential that there is a fundamental change in Government attitude towards smaller companies and that the sector is viewed in its totality, for the significant contribution it makes to employment, revenues, economic growth, purchasing power and to society as a whole," Mr Fielding said.