Thriving against the odds

Attending the National Small Business Awards in the Mansion House in Dublin must have come as a welcome relief to the Taoiseach Brian Cowen TD on 5 March amid revelations that February’s exchequer returns would show a €2bn shortfall for the first two months of the year. 

While no one at the event was in denial about the effects of the recession on the small business sector, the air of positivity was palpable on the day, as each of the finalists revealed a story of growth, innovation and employment creation against the odds. 

With unemployment threatening to reach 15pc this year, some finalists have actually increased staff numbers, while still more report year-on-year growth in turnover as well as profitability. 

Speaking to Owner Manager, the Taoiseach acknowledged this and what it means in a wider sense: “I think small business is at the heart of Irish enterprise and the nominees, winners and those who were highly commended are indicative of a wider level of entrepreneurial activity around the country. It is very critical we have acknowledgement and recognition of the people who are achieving so much in terms of building up communities and providing employment. 

“With over 98pc of companies operating in Ireland today employing fewer than 50 people, the crucial role of a dynamic and successful small business sector is beyond question. This event shows that the creativity, passion, discipline and drive that powered our small to medium-sized enterprise (SME) sector is still alive and kicking – that Ireland’s entrepreneurs are up there with the best of them. And that has to be a great source of confidence for our country’s future.” 

And confidence is sorely needed. The SFA Spring Sentiment Survey, published this month, shows that 84pc of respondents are less confident about the overall business environment than this time last year. Three quarters of companies currently rate the overall business environment as poor, with 74pc expecting it to remain poor for the next three months.

So what’s the Government going to do about this? In an effort to reassure the business community at the SFA event, the Taoiseach had the following to say: “We will continue to strive to maintain an entrepreneurial environment in which small firms can operate – where risk is rewarded and where we continue with policies that are conducive to supporting enterprise.

“I think enterprise needs a lot of supports, as the trading environment has changed so much. Not only are businesses contending with the global recession, which means a depletion of demand in all markets, but the exchange rate with sterling is causing particular problems in our trading relationship with the UK. 

“We’ve got to work together with business organisations such as the SFA to see how we can provide supports to improve competitiveness, because it’s through export of our goods and services that we will eventually determine whether we can maintain our standard of living and restore the jobs that are currently being lost because of our inability to compete.” 

In his speech, the Taoiseach said the Government’s strategy for managing the unprecedented challenge we are all faced with is based on “decisive action” around four key cornerstones: 

·    Tackling the banking situation in order to restore credibility, confidence and get credit flowing 

·    Attacking the gap in our public finances by increasing revenue and cutting spending, in a planned way, over five years 

·    Protecting jobs and restoring competitiveness to the way we do business 

·    Investing in those who are out of work so they can return to employment as soon as possible. 

But, what does this actually mean in practice? Apart from everyone waiting with bated breath for the measures contained in the supplementary budget at the start of April, the Taoiseach said the Government is “clear on the importance of short-term action to support economic activity and jobs, subject to the overriding constraint of sustainable public finances”. 

The bank recapitalisation scheme includes provision to increase lending capacity to SMEs by 10pc; as well as this, a code of practice on business lending has been introduced, he said. 

“However, given continued concerns from the business community, an independent review of credit availability is under way and will be available next month [April]. This study will also address the issue of credit insurance, which is a particular concern raised by business.” 

He noted that the Tánaiste had commissioned a review of the export credit insurance market, which will be finalised and brought to Government shortly, and that he recently announced the establishment of an Enterprise Stabilisation Fund to support viable but vulnerable exporting companies. 

The Taoiseach announced a number of further steps to assist the enterprise sector at the SFA event: 

·    Each county council will establish a ‘Business Support Unit’ to act as a point of contact to ensure a quick, co-ordinated response to businesses when dealing with local authorities 

·    The Tánaiste will shortly meet with local authority managers to discuss further means of supporting start-ups 

·    A number of improvements to reduce regulatory burdens in the planning area will soon be announced 

·    To help cash flow to businesses, the Government is introducing, on an administrative basis, a commitment to reduce the payment period by central government departments from 30 to 15 days  

·    An assessment will be completed by the end of April on the impact of extending this to the local authority, health and

·    education sectors.

Here are some key details on the award winners, who the Taoiseach believes reflect Ireland’s continued determination and entrepreneurial spirit: 

Overall Winner: Connemara Seafoods (Also winner of the Food & Drink category)
All of Connemara Seafood’s output is exported. Increasing its workforce from 30 to 40 last year, the company operates from a 60,000 sq ft production facility on the shores of Clew Bay. Research and development is vital to its export endeavours.  

Winner – Manufacturing: Ecocem
Manufacturer of environmentally friendly cement Ecocem made one million tonnes of CO2 savings in Ireland last year and its ambition is to be carbon neutral without using offsets in 2012. Set up in 2001, Ecocem’s first plant was built in Holland, followed by another in Ireland. A third plant is currently under construction in France.  

Winner – Services: Surecom
Based in the heart of Co Tipperary, Surecom targets the high end of the telecommunications technology business, and now provides managed services solutions to major European players such as Telefónica and Ericsson. Having started with one employee in 2005, it now has a workforce of nearly 50.  

Winner – Outstanding Small Business: Home Instead Senior Care
The Home Instead Senior Care franchise network has grown from a pilot office in 2005 to 14 offices around the country this year. It employs 900 carers and has 900 individual clients. Revenues grew 68pc last year and the business expects a further 25–30pc increase this year.  

Winner – Best in Human Resources (HR): Kevin Dempsey Distributors
Based in Dublin and with an operation in the UK, Kevin Dempsey Distributors’ HR development plan focuses on the personal interests of its employees as well as job-related requirements. Camaraderie and celebrating achievements are part of the company’s culture.  

Winner – Innovator: Megazyme
Megazyme focuses on the development of pioneering test methods in kit form for the measurement of components that dictate food and beverage quality. In the past five years, the Bray-based firm has developed 54 food test kits. Exports account for 97pc of total sales.  

Winner – Environmental Sustainability: Java Republic
As part of its commitment to become carbon neutral, coffee-roasting company Java Republic has installed a wood-pellet boiler to heat its building. Its electricity is provided by Airtricity wind farms and the expanse of glass in the building design means the sun helps to keep heating bills down. 

By Sorcha Corcoran