Investment in your business

Small businesses are no different to large businesses – they both need funding to develop and grow. Even the best ideas and products have a natural life cycle and will not guarantee a revenue stream indefinitely.

But where large and small businesses differ is that large businesses tend to have a number of products or services to spread their revenue stream, not relying on one, which gives  them the opportunity to develop new idea’s or products to replace old ones, while the company continues to perform.

That killer idea or market niche that drove you to start your business is now maybe 12 – 18 months old and very soon could be overtaken by the market.
This is why you need to look ahead and develop the next idea or product, so in 12 months time a new source of revenue is coming on stream.

The details below highlight the government sponsored funding that might help you achieve that growth in the future.

Enterprise Ireland
The government agency Enterprise Ireland provides advisory and financial support to high potential start-up businesses and encourages all forms of entrepreneurship.

What Is Available?
Grants are available for feasibility studies, recruitment of key personnel, market research, consultancy and participation in trade fairs.

Enterprise Ireland will also consider co-investment in relation to investor-ready business plans.  They will decide on the amount of investment after examination of the following factors: growth of the business; the number and quality of jobs created; the level of risk; innovative qualities of the business plan; and achievement of previous milestones or investment targets.
Funding under their Exploring New Opportunities initiative can help you to fully explore your business proposition.

Criteria:
The services of Enterprise Ireland are only applicable to companies employing more than 10 people.  The businesses must be high potential start-ups.

Contact:
For enquiries email client.service@enterprise-ireland.com

County and City Enterprise Boards
County and City and Enterprise boards provide direct grant-support to new and existing enterprises and promote entrepreneurship and women-in-business at local level, to small enterprises in the commercial world.
These boards provide a range of supports including priming grants, business expansion grants and feasibility grants.

Priming Grants Are Available:
In relation to priming grants, eligible clients may be awarded such a grant within 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.

How To Qualify:
Priming grants are 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; A Domestically traded services business with the potential to trade internationally; A domestically traded services business being established by a female returning to the workforce or unemployed persons where the potential for deadweight and displacement does not exist.

Business Expansion Grants Are Available:
With regard to 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.

How To Qualify:
Business expansion grants may be given in the following circumstances: To those businesses located within the board’s geographic area; A business, which, on growth, may or may not have the capacity to fit the enterprise Ireland portfolio; A business employing up to 10 employees; A manufacturing or internationally traded service business; A domestically traded service business with the potential to trade internationally.

Feasibility / Innovation Grant:
The maximum Feasibility / Innovation Grant payable for the southern and eastern region shall be 50% of the investment or €20,000 whichever is the lesser. The maximum Feasibility / Innovation Grant payable for the Boarder, Midland & Western Region shall be 60% of the investment or €20,000 whichever is the lesser.

Contact:
For more information contact the office of your local enterprise board.

Department of Social Protection
The Department of Social Protection has also introduced a new scheme, the Back to Work Short Term Enterprise Allowance.

What Is Available?
This new scheme was designed to provide immediate support for someone who loses their job and qualifies for Jobseeker’s Benefit but wants to start a business, provided it is approved by a Partnership company or a Departmental Facilitator. 

It provides an incentive to recipients of Jobseeker’s Benefit to avail of self-employment opportunities by allowing them to retain their appropriate Jobseeker Benefit rate.  The maximum duration of the allowance is the same as if the person remained on Jobseeker’s Benefit until entitlement expires; i.e. 234 days or 312 days, depending on the number of contributions paid.    

How To Qualify:
In order to be eligible for the scheme you must be unemployed and qualify for the Jobseeker’s Benefit payment.

Contact:
Contact your local welfare office if you think this scheme could apply to you.

Irish Development Authority
The Irish Development Authority may provide financial assistance to companies wishing to locate in Ireland or expand their existing operations in Ireland.

How To Qualify:
The main criteria applied to determine the availability of incentives includes the quality of employment created and the location chosen within Ireland.

The types of grants that are available include: Employment Grants, Research and development Grants, Training Grants and Capital Grants.

Tax Credit for Research and Development:
Ireland recently introduced a new research and development (R&D) tax credit, designed to encourage companies to undertake new and/or additional R&D activity in Ireland.  It covers wages, related overheads, plant/machinery, and buildings.  Stamp duty on intellectual property rights has been abolished.

Contact:
For more information email idaireland@ida.ie.

Halo Business Angel Partnership
Another option is to register your business with one of the joint venture capital companies in existence in Ireland, such as the Halo Business Angel Partnership, as it will widen your access to private equity for your business.

How To Join:
Initially, you submit your Business Plan with a completed company application form. This is a short summary of your business that gives details of the investment opportunity and also profiles the type of investor you are seeking.
Once satisfied that your business plan will stand up to scrutiny they match your requirements against the investment criteria, and the skills and experience detail, they hold for their investors.

Where they see an immediate ‘match’ – they contact the investor(s) directly to make them aware of your company and the investment opportunity that exists. Details of your company are maintained on their website for a minimum of 90 days.

What Is Available?
They set up additional opportunities for you to meet investors by hosting seminars on topics of mutual interest.

There is also the option of business investment.  Individual Business Angels tend to invest in the range €25K to €250K. A recent development has been the evolution of syndicates or investor groups, comprising groups of Business Angels who will invest a lot more.

Investor contact is guaranteed or your money will be refunded.  You can get local, national and international exposure.  There are over 20,000 angels looking to invest and over 5,000 entrepreneur-investor connections are made each month.

Business assistance can be provided in many ways by the ‘Angels’.  They provide the money you need to set up or grow your business.  They can take a seat on your board or take an active role in the business.  They are usually former business owners themselves, so can offer advice.  They have a large network of contacts they can introduce you to.  They can expand your client base by promoting your business

Contact:
If you are interested in this opportunity email info@businessangels.ie.