|
 The SFA Chairman, Ian Martin, at a recent meeting with the Minister for Small Business, John Perry, T.D., outlined to the Minister that the small business community need Government to “Restore and Reduce”. “It is critical that the restoration of access to credit is created for small firms along with restoring confidence to the economy. The Government also need to reduce business costs if firms are to survive, grow and create sustainable employment.”
Martin commented that while further investment was being made in the banking system the Government had again ignored the issue of credit for small firms. “With one in four small businesses continuing to experience decreases in the availability of working capital, the Government must swiftly deliver on their commitment to introduce a loan-guarantee scheme to small businesses.”
“Many viable small businesses lack two key ingredients to access financial support from the banking system: they lack collateral because of the property bubble collapse and associated high negative equity and they lack a good track record over the past two to three years because of the worldwide economic recession and loss of consumer confidence and spending at home.”
“The banks are commercial entities and will not move from risk assessment criteria about what is a viable business and therefore we require urgent Government intervention to breach this gap. We, small business, are the life blood of this country and it is time this was recognised. Time is running out - we need action,” stated Martin.
Martin stated that the restoration of confidence was also essential, “Consumer and business confidence remains fragile and confidence will only return to the economy, to both business investors and consumers, if they really believe that the Government has put in place a sustainable plan to address the budget deficit and provide an environment for sustainable employment,” stated Martin.
While recognising the financial constraints that the Government is operating under, Martin said it was essential that they continued to focus on where there will be a direct return on investment and that is through supporting small businesses in retaining jobs.
“We need to ensure that the competitive environment is urgently created to allow small Irish firms compete, through tackling Government controlled costs such as electricity & other energy costs, local authority charges, regulatory burden and waste/water charges. While the Programme for Government has provided some commitment to addressing the cost of doing business, we have yet to see any focused proposals from Government in this regard.”
“The only way to solve a fiscal or unemployment crisis is through generating economic activity. The Government must remember that this model of creating a supportive environment for indigenous small businesses has been, and must continue to be, the corner stone of our economic success. The small business sector is the engines of recovery! Now is the time for Government to recognise the key role they play in our economy, and to provide the small business sector with access to credit and with a confident and supportive environment to ensure future success and job creation,” Martin concluded.
 |
Subscribe to this comment's feed
Show/Hide comments
