Dáil Éireann Debate, Wednesday - 24 June 2026
346. Deputy Eoin Hayes asked the Minister for Rural and Community Development and the Gaeltacht if he accepts that the majority of social enterprises in Ireland operate in areas of persistent market failure, delivering services that are needed but cannot be made commercially self-sustaining, rather than functioning as conventional, profit-maximising market actors; and if he will make a statement on the matter. [48271/26]
Amharc ar fhreagraWhile many social enterprises operate in areas of ‘deficient demand’, seeking to deliver a good or service for a community where there is insufficient demand due to economic or social disadvantage or low population density, social enterprises may also focus on other areas of impact, for example on work integration (WISEs) to support disadvantaged people to participate in the labour market; enterprise development to support the creation of other enterprises (e.g. through the provision of office space and facilities); environmental social enterprises which focus on environmental sustainability (including circular economy social enterprises); or social enterprises contracted with the public sector to deliver public services in disadvantaged areas and communities.
The 2023 Social Enterprise Baseline Data Collection Exercise found that Irish social enterprises are helping to address a wide range of social, economic and environmental challenges, and their impact is acknowledged. 39.6% of social enterprises have a modest annual income below €100,000. Larger social enterprises still form a relevant part of the sector, however, with 11.9% of social enterprises having an annual income between €500,000 and €1M and another 11.9% with an annual income greater than €1M.
Influenced by these findings, as well as the OECDs 2023 review on 'Boosting Social Entrepreneurship and Social Enterprise Development in Ireland', Trading for Impact, the National Social Enterprise Policy 2024-2027, was developed in partnership with the sector and submissions made as part of this process are available on my Department's website. Following this consultation, its key objectives are to help cultivate and sustain strong and impactful social enterprises that enrich the social, environmental, and economic well-being of people living in our communities.
A Stakeholder Engagement Group (SEG) has been set up to co-ordinate input into the delivery of Trading for Impact on a cross sectoral basis and a number of working groups have been established to improve knowledge and access to social finance, increase socially responsible procurement benefitting social enterprises, and building awareness of social enterprises and their impact, which will, in line with the policy, have a positive impact on their financial sustainability.
The work of the Building Awareness group will be greatly enhanced by the delivery of phase two of a pilot already underway to verify social enterprises, giving them greater visibility to the general public, businesses who wish to increase their social footprint, and public bodies, who all play a part in supporting the sector.
In April last, I launched a Dormant Accounts Fund (DAF) Sustaining Social Enterprise Scheme which supports established social enterprises to grow their traded income and become more financially self-sufficient over 23 months, in line with SEG feedback. Applications are currently at assessment stage. This funding will support projects such as the recruitment of key staff to drive income growth and sustainability and the development of a shared service resource enabling existing staff to focus on increased income generation.
Action 12 of Trading for Impact commits to deliver loan and grant funding schemes for social enterprises through new and existing programmes within my Department including the Community Services Programme (CSP), the Social Inclusion and Community Activation Programme (SICAP) and LEADER.
Through SICAP, social enterprises providing services to one or more of the named SICAP target groups, may avail of grants through SICAP’s programme implementers up to a maximum of €2,500 per annum, with a view to supporting social enterprises to establish and expand, employing those who are most marginalised, and so they can provide local services where other enterprises may not be able to.
My Department's Our Rural Future policy also recognises the role of social enterprises in providing appropriate spaces and services to rural areas, and influences funding across a range of schemes within my Department’s Rural Development Investment Programme, for example LEADER and the Town and Village Renewal Scheme which can support suitable projects.
The CSP programme currently supports 453 services nationally on an ongoing basis via 434 community organisations to provide local social, economic, and environmental services through a social enterprise model with a budget of €59.4m in 2026. A recent call for new organisations to join the CSP programme closed on May 8th last. All applications received are currently going through an appraisal process, with results expected to be issued before the end of July.
Department of Social Protection supports, including through the Job Initiative, TUS, Community Employment Scheme or Rural Social Scheme posts also play an important part in supporting the sector, and this is acknowledged under the policy.
