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The Government wants to hear from cash-strapped SMEs

Tell Michael Noonan all about your problems.

THE GOVERNMENT HAS launched a consultation on the lack of equity available for Small and Medium Enterprises.

Responses to the consultation will go to a newly formed Equity Finance Subgroup within the SME Funding Consulation Committee.

Debt forgiveness has reportedly been considered as an option by the subgroup, although sources close to the process said that it was too early to say what solutions would be offered to struggling SMEs.

TheJournal.ie has previously reported on problems with existing SME equity supports such as the Employment and Investment Incentive Scheme, the effectiveness of which the new subcommittee will also examine.

Addressing the scale of the challenge, the consultation document states that “it is recognised that there is a real need to increase the levels of equity investment in Irish SMEs”.

The consultation is open for responses until the 30th of May.

A variety of investment vehicles have been suggested, including funnelling National Pension Reserve Fund cash through the National Treasury Management Agency’s Ireland Strategic Investment Fund.

Responding to the consultation, ISME chief executive Mark Fielding said:

Too many Irish SMEs have too little equity as a result of inadequete set-up equity because of the losses of the last six years…we do need to encourage an increase in equity finance in small and medium businesses.

Updated 14.00

Restrictive, badly marketed, and poorly explained: Government finance scheme for SMEs is not working>

AIB wrote of €2 billion in SME debt in the last year>

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18 Comments
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    Mute Tristan Ua Ceithearnaigh
    Favourite Tristan Ua Ceithearnaigh
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    Apr 28th 2014, 9:55 AM

    It is cynical for the Fine Gael regime to only now reach out to SMEs coming up to election. To little and too late Michael Noonan.

    71
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    Mute No Water Tax
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    Apr 28th 2014, 10:48 AM

    Its like FF all over again. Every few months the same plans are rehashed and repacked but are never actually implemented.

    23
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    Mute Richard Griffin
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    Apr 28th 2014, 10:16 AM

    Start by sorting out rent and rates… small business might survive then…

    51
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    Mute Sheik Yahbouti
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    Apr 28th 2014, 10:03 AM

    This is sad, really sad. As I wonder through my local shopping centre, and look at all the vacant units (another business gone last week) it is such a comfort to know that the Government is inviting “submissions” from SMEs, to go before the sub-committee of the Committee for doing bugger all.

    49
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    Mute Joseph O'Regan
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    Apr 28th 2014, 9:57 AM

    The Government does not care about indigenous companies, they want to please the multinationals and get the people to work for slave wages for their pals. Dennis O. is rubbing his hands to see the small fortune that he’ll get for selling Irish water.

    48
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    Mute Mossy
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    Apr 28th 2014, 10:30 AM

    There’ll be nothing small about that fortune, man…

    17
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    Mute Joseph O'Regan
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    Apr 28th 2014, 12:04 PM

    What’s a couple of billion to him, tax exile and FG supporter.

    10
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    Mute Paul Roche
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    Apr 28th 2014, 9:55 AM

    Debt forgiveness for business without debt forgiveness for homeowners?

    30
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    Mute Allan O'Shea
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    Apr 28th 2014, 10:15 AM

    Yeah. Hear. But do nothing about it. As usual. Strange that an election is coming up. Hmmm. Don’t vote for ff, fg or labour if you want change.

    19
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    Mute No Water Tax
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    Apr 28th 2014, 10:56 AM

    Massive tax breaks for multinationals that employ a small % of the workforce, little of no support for indigenous companies. Says it all really.

    18
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    Mute JakkiB
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    Apr 28th 2014, 9:58 AM

    Be like going to Dragons Den!

    18
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    Mute No Water Tax
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    Apr 28th 2014, 10:49 AM

    Sure dont they have the MicrofianceIreland.ie scheme? Advertised all over the radio. Does it work? No. Loads of forms and documentation yet less than 50% are approved. As bad as the banks.

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    Mute TOP CAT
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    Apr 28th 2014, 10:09 AM

    Doctor James Reilly has an application in from the HSE….

    15
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    Mute Rory J Leonard
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    Apr 28th 2014, 10:36 AM

    Just shows how disconnected Government and Senior Civil Servants are from current commercial realities for SMEs.

    They now invite submissions before 30 May 2014 – on a problem that has existed for some time – from interested parties for consideration by a sub group!

    How innovative and original at a time when politicians are to engage with the masses?

    Will the cynical strokes at Election time ever cease? Indicative of the contempt these “Insiders” hold for us ordinary folk.

    That said, the initiative is welcome and here’s hoping “many pennies drop” on the lingering problem and on finding a solution.

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    Mute Kerry Blake
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    Apr 28th 2014, 11:29 AM

    Hearing and doing are 2 different things…..

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    Mute tax slave
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    Apr 28th 2014, 9:55 AM

    That would be all of them then,

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    Mute Giovanni Giusti
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    Apr 28th 2014, 6:46 PM

    I’m quite sure any form of direct financial support for companies would fall foul of eu regulations. And of fairness… If my competitor has been less financially prudent than me, why should my taxes pay for his debt?

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    Mute Neil Kelleher
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    May 27th 2014, 4:24 PM

    Towns and city centre shops all over ireland are being choked to death with high rates & aggressive parking charges and restrictions, while the UK & international retailers are paying lower rates & free parking on the outskirts of town sacking up the little business that’s there moving profits abroad, paying little tax and turning town centres into run down vacant drunk drug hangouts.

    1
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