Dáil Éireann Debate, Wednesday - 17 December 2025
199. Deputy Seán Ó Fearghaíl asked the Minister for Enterprise, Tourism and Employment the key measures taken to support the SME sector during 2025; his priorities for 2026; and if he will make a statement on the matter. [73142/25]
Amharc ar fhreagraThe Programme for Government is clear in setting out the importance of SMEs to our economy. Developing Ireland's enterprise base has been and will remain a key priority, and we will continue to reduce costs, administrative burdens, and bureaucracy for businesses.
In 2025, My Department placed a particular focus on simplification and burden reduction, while also engaging directly with SMEs through the Cost of Business Advisory Forum. This forum brings together SME and industry representatives, regulators, State Bodies and Government Departments to examine non-payroll costs that impact businesses at regional and national level. The final objective of the Forum is to present a report to Government in late Q1 2026, that will outline its findings and highlight those steps that can be taken to mitigate issues arising from increased costs or any associated regulatory or infrastructural issues that merit a changed approach.
This year also saw the establishment of the Small Business Unit, fulfilling a Programme for Government commitment and recognising the importance of small businesses. The Unit is tasked with ensuring that SME needs are considered across Government through rigorous implementation of the SME Test and by simplifying access to grants and supports via the National Enterprise Hub. It also ensures that Local Enterprise Offices (LEOs) are properly resourced to help small businesses.
The Programme for Government commits to rigorously implementing the SME Test. The SME Test is a tool that encourages policymakers across Government to consider the impact that any new measures may have on SMEs and to mitigate against those impacts where appropriate. Through the SME Test, we are driving home the importance of the ‘’think small first’’ principle across Government. In 2024, 26 SME Tests were applied by eight Government Departments. So far in 2025, 22 SME Tests have been completed. In 2026, The Department, through the Small Business Unit, will prioritise increasing the number of SME Tests applied and will actively explore new ways to strengthen the enforcement of the SME Test.
Since launching last year, the National Enterprise Hub (NEH) has dealt with over 10,000 enquires and engaged more than 220,000 active online users. Monthly volumes have grown steadily, with over 1,000 queries received in November alone, more than triple the number recorded in January. At launch, the NEH provided guidance on 180 supports from 19 government departments and agencies. Since then, the service has grown significantly and now offers information on over 250 supports from 32 different Government bodies. In 2026, the focus will be on further strengthening the NEH, with a particular emphasis on simplification and improving the user experience for businesses.
The LEOs have a mandate to support small businesses with up to 50 employees and I have made changes to their grants and schemes to ensure more businesses are eligible. Through the LEO Centre of Excellence, the unit has completed a comprehensive review of application requirements for each of the LEO grants. This has resulted in significant reduction in the number of questions across multiple grant schemes for example the Priming and Business Expansion grants have been reduced by 47% the Green for Business grant by 30% and the Feasibility grant by 28%, this work will continue into 2026 where further streamlining of the application process will be implemented.
Supporting Irish SMEs to scale and grow remains a key priority for my Department. In 2025, we published the report ‘Market Demand for and Supply of Scaling Finance in Ireland’, identifying a €1.1 billion funding gap for deals starting from €3 million and Series A+ rounds over the next three to five years. To address these and broader challenges, my Department is finalising a Finance for Scaling Implementation Strategy, which will shortly be brought to Government and will introduce immediate interventions to address this gap, including an SME Scaling Fund administered by Enterprise Ireland. My Department’s priorities for 2026 will focus on delivering the SME Scaling Fund and advancing measures to unlock institutional and pension fund investment in scaling equity funds and incentivise investment into scaling companies.
Tourism is another sector where SMEs play a central role. With over 46,000 tourism-related enterprises, the sector supports nearly one in ten jobs and sustains local economies in every region. In early December, the Department launched Ireland’s new National Tourism Policy Statement, which sets a clear strategic direction for the sector to 2030. The Policy Statement focuses on building competitiveness through sustainability and digital transformation, while providing strong support for SMEs and reinforcing tourism’s role in driving balanced regional development. Delivering on these ambitions requires action at regional level. That is why balanced regional enterprise development and sustainable local job creation are key policy priorities for this Government. My Department and its agencies contribute to this through nine Regional Enterprise Plans, which identify growth opportunities and strengthen regional enterprise ecosystems. The current plans run to the end of this year, and the Programme for Government commits to developing and resourcing new plans following full consultation in each region.
In 2026, the Department’s priorities for the SME sector will be focused on implementing key actions under the Government’s Action Plan on Competitiveness and Productivity, particularly those aimed at creating and scaling more SMEs and reducing the regulatory and administrative burdens on small businesses. This will include progressing measures to strengthen the start-up and scaling ecosystem, improving access to scaling finance for indigenous firms, and continuing to simplify how SMEs engage with Government through more streamlined supports and processes. These actions are intended to support productivity growth, enhance competitiveness, and strengthen the resilience of Irish SMEs in the context of ongoing cost pressures and international uncertainty.
