Enterprise Minister Peter Burke has highlighted his concerns over the inadequate level of digitalisation among small and medium enterprises (SMEs). In order to address this situation, he has committed to providing support through the impending budget to enable the SME sector to transition toward online operations.
While warning that businesses will need to put in considerable effort to achieve digitalisation, Mr. Burke revealed that his department’s aim is to have 90% of SMEs operating online by the end of this decade. Alongside his team, he will concentrate on this aspect during the “budgetary package” to offer the required backing to the sector. However, he did not provide details regarding the prospective funding.
Mr. Burke, in his Dáil speech, also confirmed that two-thirds of the qualifying businesses have availed a grant to handle the escalating business costs. Even though an allocation of €257 million has been made, the registration deadline had to be extended by two weeks due to the limited number of applicants. The total confirmed registrations are 72,576, representing 81,366 firms, essentially two-thirds of the potential qualifying businesses.
He also noted that those businesses from the hospitality and retail sectors which are eligible for a grant to meet increased business costs, would receive an additional or second payment under this scheme.
Mr. Burke, who was appointed as the Minister for Enterprise, Trade and Employment three months ago, had announced his primary focus to back the SME sector, which he identified as the cornerstone of Ireland’s economy.
In his dedication to ensure a robust budget for businesses, Mr. Burke acknowledged advancements in various areas and stated that small businesses across the nation are now reaping the benefits of the Government’s SME initiative.
From 1st October onwards, he confirmed, the reduced PRSI rate will come into effect for employees earning the national minimum wage. This procedure will be closely aligned with the Low Pay Commission’s recommendations to guarantee that minimum wage employees will not be subject to the higher PRSI rate.
He highlighted the significance of numerous grants aimed at energy efficiency, emphasizing their crucial role in maintaining sustainability. Yet, he expressed concern over the digital transformation aspect within the SME sector, indicating that a considerable amount of work still needed to be done by some SMEs in this area.
His taxation proposal is all set to be presented to the Finance Department, and he intends to coordinate with the Minister for Public Expenditure, Paschal Donohoe, focusing particularly on the expenditure aspect to explore how continuous support for digitisation and other sectors can be facilitated. Currently, the Minister is helming a trade and investment mission to New York and Boston, an initiative run by Enterprise Ireland and IDA Ireland.