The Small Business Forum’s report ‘Small Business is Big Business’ presents an analysis of the small business sector and the evolving environment in which it operates. The report identifies a number of important recommendations along with an implementation mechanism, which will allow this sector to continue to flourish and grow.

Executive Summary
Background:

The Small Business Forum was set up in July 2005 by the Minister for Enterprise, Trade & Employment, Micheál Martin T.D., to consider the current environment for conducting small business in Ireland, and to advise on the adequacy and appropriateness of public policy responses. The Forum based its work on a number of inputs: an extensive review of current literature, 74 submissions from organisations and interested members of the public, a detailed empirical study, and a series of consultation meetings with small business owners and managers.

Why Small Business is Big Business

Over 97 per cent of businesses operating in Ireland today are ‘small’ – they employ fewer than 50 people. There are approximately a quarter of a million small businesses in Ireland, employing 777,000 people (more than half of the total private sector, nonagricultural
workforce).

In many ways, the health of the small business sector is both an indicator of the condition of the whole economy and a determinant of that condition. Small businesses are important for a number of reasons:

They provide regionally distributed employment around the country, deliver a huge range of local services, and contribute to the economic, social and cultural life of the entire population.

They account for over 70 per cent of gross value added (GVA) in Construction (around €7.2 billion), over 40 per cent of GVA in Services (€15 billion – excluding financial services), and 34 per cent of GVA in indigenous Manufacturing (€2.1 billion).

They pay 50 per cent of VAT on services (over €4 billion), 11 per cent of corporation taxes (around €530 million) and 37 per cent of income taxes (almost €4 billion)

They form an essential part of the supply chain for larger firms, and in particular are part of the support infrastructure needed to attract and retain foreign investment.

The performance of the small business sector is thus an important contributor to the overall quality of life and standard of living in the country.

Download Small Business is Big Business, Report of the Smal Business Forum

PDF format, 873KB, 91Pages.

Chapter 1: The Economic Impact of Small Businesses
Details the significant contribution of the small business sector to Ireland’s economy.

Chapter 2: The Evolving Environment for Small Businesses
Looks at the challenges that will influence the future development of small businesses in Ireland.

Chapter 3: Create a Better Environment for all Small Businesses
Addresses certain issues that are faced by all small businesses including regulation, local authority charges and access to information.

Chapter 4: Stimulate Growth
Identifies key areas such as access to finance, management capability, innovation and exploitation of ICT where improvements can be made to develop companies with the capacity and ambition to grow.

Chapter 5: Inspire Entrepreneurship
Raises a number of issues that need to be addressed if the quantity and quality of start-up enterprises is to continue to meet the country’s economic needs.

Chapter 6: Implementation: from Recommendations to Action

Visit Report of the Smal Business Forum Website

About the Small Business Forum:

The Small Business Forum was set up in July 2005 by the Minister for Enterprise, Trade & Employment, Micheál Martin T.D. The overarching task of the Forum is to consider the current environment for conducting small business in Ireland, and to advise on the adequacy and appropriateness of public policy responses.

Mr. Micheál Martin, T.D.
Minister for Enterprise, Trade & Employment

Dear Minister,
I would like to thank you for the opportunity to chair the Small Business Forum. It has been a privilege to undertake this role and to work with the Forum members to review the issues and challenges that are currently facing the small business sector. The task has been personally challenging, extremely interesting and very rewarding.

Over the past number of months, the Forum has held a broad consultation process and we were delighted with the level of passion, engagement and constructive contributions that we received, both in facetoface meetings throughout the country and through written submissions. As a result of these contributions, and the time and effort of many different people, representing a variety of opinions and ideas, I believe that we have produced a comprehensive report with specific recommendations. When implemented, these will make a real difference to the future growth and health of the small business sector. The report also suggests an implementation path, and we look forward to providing any additional support that may be required to help move this process forward.

I would like to thank the members of the Forum who have given tirelessly of their time and expertise since our first meeting in September last year. Each and every one of them brought a unique perspective to the process and I believe has helped to shape a report that is inclusive and representative of the range of small businesses currently operating in Ireland.

The Secretariat service provided by Forfás to the Small Business Forum has been invaluable. The team from Forfás, led by Marie Bourke, has continually exceeded the expectations of the Forum and has provided us with extensive support, advice and guidance as we have worked through the process, and I thank them sincerely for that.

The small business sector in Ireland is the potential engine of growth for the future of the Irish economy. It is critical that plans are put in place now to create an environment that will allow the sector to continue to flourish and grow. I believe that the Report of the Small Business Forum effectively identifies the measures that need to be taken to achieve that objective. On behalf of the members of the Small Business Forum, I am delighted to submit our report to you.

Yours sincerely,
Joe Macri,
Chair of the Small Business Forum Managing Director, Microsoft Ireland
April 2006

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