What ‘grants’ and other supports apply to my business in Ireland (2017)


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If you have ever wondered what supports you and your startup business can and should apply for in Ireland, particularly in Galway, this set of slides may be of interest - Updated July 2017

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What ‘grants’ and other supports apply to my business in Ireland (2017)

  1. 1. What ‘grants’ and other supports are available to regional startups in Ireland?
  2. 2. If you ever wondered What assistance can: Enterprise Ireland, Local Enterprise Offices, Institutes of Technology Innovation Centres, New Frontiers, StartLab, LEADER, Community Enterprise Centres, Revenue Commissioners, Social Entrepreneurs Ireland, WestBIC, Bord Iascaigh Mhara, Halo Business Angel Partnership, Microfinance Ireland, Western Development Commission, IDA Ireland, Solas (FAS), Bord Bia, and Teagasc – offer my start up business in Galway?
  3. 3. Where to start : Local Enterprise Offices Government Strategy NEW - Technical Assistance for Micro Exporters LEOs – Financial Supports NEW – LEO Innovation investment Fund LEADER InterTrade Ireland For Food Startups Supports for Unemployed to Start a Business Enterprise Ireland – Export and Growth oriented For Social Entrepreneurs Sources of Finance1 C O N T E N T S BizMentors – Pro Bono Mentoring Click to jump to slide … Horizon 2020 – SME Instrument (€50,000) 2 3 4 5 6 7 8 9 14 13 12 11 10
  4. 4. ’Supports’ For My StartupGreater Risk/ Investment required International Market Orientation Click for website..
  5. 5. 1. Sources of Finance If business needs an initial injection of capital: 1. Personal Savings 2. Family & Friends 3. Suppliers 4. Financial Institutions + Microfinance Ireland 5. Enterprise Agencies 6. Crowdfunding * Peer to Peer Lending * Blogpost : www.startuphughes.com/blog/crowdfunding-ireland/
  6. 6. 2. Government Strategy 2012 Action Plan provided overview of Financial Support for Irish Business www.djei.ie/publications/2012APJ.pdf Annual Action Plans provide updates and information on new initiatives www.djei.ie/en/Publications/Publication -files/Action-Plan-for-Jobs-2017.pdf Regional Enterprise Strategies >>>more
  7. 7. • Your Local Enterprise Office – Business Training – Financial Supports – Mentoring 3. Where to start? Online Tool: Answer 8 Questions Click to open the Guide from LocalEnterprise.ie Údarás na Gaeltachta – Provision of financial and non-financial assistance in the Gaeltacht regions.
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  9. 9. 4. Plus if Unemployed 9 Talk to your Local Development Company • Short Term Enterprise Allowance gives support to people who have lost their job and want to start their own business.is paid instead of your Jobseeker's Benefit for a maximum of 9 months. • Start Your Own Business scheme If you have been unemployed for at least 12 months and set up a qualifying business, this provides an exemption from income tax up to a maximum of €40,000 per annum for a period of 2 years.
  10. 10. 5. Bizmentors.ie • BIZMENTORS is a structured mentor programme offering Pro Bono Access to Business Expertise and Wisdom (Galway - Mayo and Roscommon in 2017 with national expansion plans) 10
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  12. 12. 6. LEOs – Financial Supports 12 • Formerly branded as City/County Enterprise Boards, your LEO promotes entrepreneurship and provides direct grant-support to new and existing enterprises • Focus on commercial micro enterprises – Advice – Mentoring – Grants – Refundable Aid – Training • For sole traders, partnerships, community or limited companies that fulfil the following criteria: – Located within the CEB’s geographic area – A business which on growth may or may not fit the Enterprise Ireland portfolio – A business employing up to 10 employees – A Manufacturing or Internationally traded services business (75% of trading income generated internationally) – A Domestically traded Service business with the potential to trade internationally – A domestically traded service being established by a female returning to the workforce or unemployed persons
  13. 13. Priming Grants • The first eighteen months of setting up the business. • The maximum Priming Grant payable shall be 50% of the investment or €150,000 whichever is the lesser. • Grants over €80,000 and up to €150,000 shall be the exception and shall only apply in the case of projects that clearly demonstrate a potential to graduate to Enterprise Ireland and/or to export internationally. • Key issue is to Avoid ‘Job Displacement’ More: www.localenterprise.ie/Galway/Financial-Supports/Priming-Grant/
  14. 14. Business Expansion Grants • The maximum Business Expansion Grant payable shall be 50% of the investment or €150,000 whichever is the lesser. • Grants over €80,000 and up to €150,000 shall be the exception and shall only apply in the case of projects that clearly demonstrate a potential to graduate to Enterprise Ireland and/or to export internationally. • In all other cases, the maximum grant shall be 50% of the investment or €80,000 whichever is the lesser. Subject to the 50% limit, a maximum grant of €15,000 per full time job created shall apply in respect of any employment support granted. • A business that had availed of a Priming Grant will be ineligible to apply for a Business Expansion grant until 18 months after approval/drawdown date of Priming Grant whichever is the later.
  15. 15. Feasibility Grants • The maximum Feasibility / Innovation Grant payable for the BMW Region shall be 60% of the investment or €20,000 whichever is the lesser. • The maximum Feasibility/ Innovation Grant payable for the S&E region shall be 50% of the investment or €20,000 whichever is the lesser
  16. 16. Online Trading Voucher • To support small Irish businesses to enhance their online trading presence, Online Trading Vouchers to the value of € 2,500 (up to a maximum of 50% of the total cost) are available • Development or upgrade of an e-commerce website such as implementing online payments or booking systems. Other usage includes; purchase of Internet related software, online advertising, development of an app, implementation of a digital marketing strategy, consultation with ICT experts for early stage adopters of online strategy, training/skills development specifically to establish and manage an online trading activity. 16
  17. 17. Amount of Grant Aid • Overall the cumulative level of grants to a micro enterprise must not exceed €150,000 over a three year period. 17 Refundable Aid + Equity Investment • May be provided. • Refundable Aid to be repaid over years 3, 4 and 5 at 3% interest rate per annum Will not fund expenditure incurred before Grant is approved
  18. 18. Don’t forget the Soft Supports
  19. 19. Community Enterprise Centres 19 The National Association of Community Enterprise Centres (NACEC) is a network of 120 community enterprise centres in the Republic of Ireland.
  20. 20. 7. Technical Assistance for Micro Exporters (€2,500 matched) • Technical Assistance for Micro Exporters’ Grants will part-fund the costs that can be incurred in investigating and researching export markets, e.g. exhibiting at Trade Fairs, preparing marketing material and developing websites specifically targeting overseas markets. • Grant Covers 50% of eligible costs (net of vat) to a max of €2,500 20NEW For more see https://www.localenterprise.ie/Carlow/Financial- Supports/Technical-Assistance-for-Micro-Exporters-Grant-Funding/
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  22. 22. 8. €1.5m LEO Innovation Investment Fund for Innovative Microenterprises • A competitive programme, LIIF is matched grant funding (no equity) of up to €25,000. • For LEO clients with an innovative development plan which might include: new product launch, new process development, new market opportunity, marketing strategy diversification, changing business or revenue model, Brexit proofing, or making an addition to your management team. • Apply online. The application will be sent to your designated LEO. 22NEW
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  24. 24. 9. International Market (Technology/Knowledge) Orientation
  25. 25. HPSU – High Potential Startup 25 Competitive Feasibility Fund (CFF)
  26. 26. Early Stage with Growth Potential New Frontiers, funded by Enterprise Ireland, is Ireland’s national entrepreneur development programme delivered by the Institutes of Technology’s Incubation Centres (16 locations). For those with an innovative business idea, the six month programmes provide a package of supports to help accelerate the business’s development and to equip the promoter with the skills and contacts required to be future business leaders. http://newfrontiers.ie/
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  28. 28. Innovation Vouchers • Initiative aims to Build Links between Small Businesses and Knowledge Providers • Only applies to companies • Voucher (€5,000) can be exchanged for Advice and Expertise from the Knowledge Providers • Projects: • Require Innovative Solution • Provide Additional Value for the Business • Have On-going Benefits  Universities  Institutes of Technology  State Research Agencies: e.g.Teagasc
  29. 29. What can the Vouchers be used for? Any kind of innovation such as: • New Product Design / Development • New or Improved Production Process • New business model development • New service delivery and customer interface • New service development • Tailored training in innovation management • Innovation / technology audit Knowledge of: • Efficiency audits, process change • Supply chain management and logistics • Product and service testing and economic impact assessment
  30. 30. Early stage Equity + Accelerators • Competitive Start Fund - €50,000 for a 10% ordinary equity stake in the start-up company. • See my two blog articles for advice on how to apply! AgTech - Galway
  31. 31. Source: www.slideshare.net/DonegalCEB/enterprise-ireland-raising-finance/12
  32. 32. SURE • Startup Refunds for Entrepreneurs (SURE) is a tax relief incentive scheme. • Income tax refund of up to 41% of the capital funding that you invest in the company under SURE. Depending on the size of your investment you may be entitled to a refund of PAYE income tax that you paid over the six years before the year in which you invest. www.revenue.ie/en/tax/it/leaflets/it15.html
  33. 33. Employment and Investment Incentive Scheme (EII) • The EII has replaced Business Expansion Scheme and provides tax relief for investment in certain corporate trades • Companies can raise €10,000,000 subject to a maximum of €2,500,000 in any one 12 month period from groups of investors • The scheme allows an individual investor to obtain income tax relief on investments up to a maximum of €150,000 per annum in each tax year up to 2013 • Companies engaged in land development, operation and management of Nursing homes, financial activities and professional service Companies are still excluded • See: http://www.revenue.ie/en/tax/it/leaflets/it55.html
  34. 34. Get Export Ready Get EXPORT Ready offers a systematic approach tailored to helping companies research, prepare and develop an export strategy including: First Flight One to One Assessment • Introductory workshops: Full day workshop including advice from Enterprise Ireland overseas Market Advisers, case studies from experienced exporters, market relevant topics and information on the full range of Enterprise Ireland supports. • Access to business intelligence: First Flight participants can access general and premium market information and advice (including information on markets, technologies, sectors and competitors) via our client Information Centre. • Appointment of a Mentor: Participants can apply for a Mentor to assist in undertaking an Export Readiness Assessment and the development and implementation of a First Flight Action Plan. • Advice on applying for other Enterprise Ireland supports for export development.
  35. 35. • Be Prepared Grant Up to €5,000 available for Enterprise Ireland client companies to help develop an action plan. 35NEW
  36. 36. Source: https://ec.europa.eu/easme/sites/easme-site/files/smei_ireland_300117.pdf • Disruptive Ideas for High Growth focused companies • 3 Galway Companies • A 10 page application Form … via EU Portal • Mentoring available from LEO /EI to complete application • Next call cut off dates 6th Sept and 8th November 2017 for Phase 1. • https://ec.europa.eu/easme/en /horizons-2020-sme- instrument for more
  37. 37. Source: https://ec.europa.eu/easme/en/news/infographic-horizon-2020s-sme-instrument-nutshell
  38. 38. 39 Write to convince evaluators to invest in your business evaluators will look at four different aspects of your proposal: the technology, market knowledge, commercialisation plan, and the financial angle. Each of the evaluators will look at 3 criteria: impact, excellence, and implementation. Source: https://ec.europa.eu/easme/en/sme- instrument-essential-tips-your-application
  39. 39. 10. LEADER 2014-2020 Galway Rural Development (GRD) is one of 50 Local Development Companies (LDCs) in Ireland delivering a range of EU and national programmes. We cover a large part of County Galway (East of the Corrib). 40 Source: www.grd.ie/programmes/Rural%20Development%20Programme/LEADER%202014%20-2020/leader-2014-2020 The LEADER programme is as a key funding pillar within the national Rural Development Programme (RDP) 2017-2020.
  40. 40. 11. InterTrade Ireland • Equity Conference and Equity Clinics + Business Angels • Sales: Acumen & Elevator Programme • R&D: Fusion & Challenge + US-Ireland R&D Partnership • Tender : Go-2-Tender Programme & Meet The Buyer 41 • €280,000 Cash Prize Fund • Investor Ready Advice (Materclasses) • Access to Networks Source: www.intertradeireland.com/media/ITI-Corporate-Brochure-LR.pdf
  41. 41. 12. Food Startups Food Works is a government supported (Bord Bia) accelerator programme that helps develop the next generation of scalable and export driven Irish food businesses. Bord Bia Vantage: www.bordbiavantage.ie/business-development/ Online resource for small food businesses.
  42. 42. 13. Social Entrepreneurs Social Entrepreneurs Ireland supports social entrepreneurs through our Academy for Entrepreneurs and Awards Programme, which provide direct support to high- potential emerging social entrepreneurs (eligibility – company not for profit). 43 See LinkedIn Pulse article: www.linkedin.com/pulse/inspiring- social-enterprise-galway-2016-donncha-hughes Plus …
  43. 43. When applying for Enterprise Agency Support • You need to take time to find out what grant schemes you may be eligible for and the criteria that apply. • There is no such thing as free money and your application will require anywhere from a few hours to several days …
  44. 44. Watch out for more … In February 2015, as part of an overarching strategy to support regional enterprise development, the Government announced a €60 million Regional Competitive Fund with the objective of supporting significant regional initiatives to build on sectoral strengths – across four Streams 45 Major Regional Change Projects (€2-5 million @ 80%) Regionally Significant change Change Projects (Up to €2 million @ 80%) Local & Community Enterprise Projects (€50k to €250k @ 80%) Industry Clusters (€50k to €250k @ 50%)
  45. 45. 46 www.startuphughes.com/galways-startup-scene-2017/
  46. 46. This presentation was uploaded to slideshare by Donncha Hughes, Business Advisor July 2017 donncha@startuphughes.com www.startuphughes.com
  47. 47. Technology Innovation Procurement Support Fund 48 • Public sector organisation could apply to a €50 million Government fund to cover 90% of cost of new technology from qualifying Irish startup companies (<5 years, <10m turnover) • What criteria and conditions would apply? • What targets should be set? • Who responsible for management? Idea … TIPs Fund