Mark Cullen outlines some of the grants and supports available for SME business owners looking to grow their companies.
The world of grants can be an interesting one to dive into with a lot of misconceptions surrounding them, “grants are only for start-ups.”
While it is true that start-ups can avail of support through grants there are many avenues that established companies and scaling SME companies can explore when it comes to grants.
“The efficiency gains that can be achieved through successful implementation can make the initial investment look like money very well spent”
Although grants have been viewed as finance in order to get companies up and running or to help in times of need, profitable companies can certainly avail of these if they align with the policy goals.
With Ireland becoming a global force on the start-up scene the supports both on a mentor level but also financially are continuously improving, with the likes of Enterprise Ireland and the various Local Enterprise Offices (LEO) funding those budding entrepreneurs that are looking to get the first initial step in their journey.
Digital transformation supports
A daunting world for some SME owners has begun to unfold with a lot of areas being taken over by the implementation of AI and efficiency rates are being targeted by bringing in these automation tools. But often the first questions is, where to start?
This is where grants can help implement new systems or be the ignition do a digital transformation in some areas of the operations. Areas that are getting the most focus include the following:
AI Implementation: Using machine learning and data analytics.
Process Automation: Reducing manual tasks in HR, finance, and operations.
Digital Customer Experience: Developing chatbots and CRM systems.
The efficiency gains that can be achieved through successful implementation can make the initial investment look like money very well spent. Not only are financial aids available but LEOs offer a free 3-day consultancy
When it comes to Local Enterprise offices the grants can range up to €150,000 which can be put toward major digital transformation projects.
This option proves 3 days of expert consultancy for free which may be step one of discovering which direction your business wants to go. Help here can be within the digital opportunity assessment such as identifying specific areas where AI and automation can help rather than having the broad view of wanting to upgrade the systems. This then unlocks your eligibility for the next level of funding.
This is the initial grant of up to €5,000 mainly focused on software, training and implementation.
This grant is available in amounts up to €150,000 and the grant covers four main categories. These include capital items, salary costs, consultancy or innovation costs (expert help with AI implementation or digital strategy) and then general overhead costs. As in the name this is an expansion grant which includes certain criteria and supports small businesses which usually must be under 10 employees.
As it is a staged journey in order to receive the business expansion grant the company must have gone through the digital for business stage as to ensure that the grant is being put to use in line with professional advice rather than guesswork. Along with this LEO grants cover 50% of costs and the investment can often pay for itself within months with improved efficiency for example.
This is an initiative brought to companies by Enterprise Ireland which is a powerhouse when it comes to supporting and developing Irish startups. There are many smaller grants to support specific areas within a business’s journey but this one that is provided by EI is substantial and should be under consideration by the eligible companies who are looking to improve this side of things. For SMEs and Large Companies, 50% of the eligible costs, up to a maximum grant of €150,000. As seen here this amount could provide drastic improvements in the day to day processes and in turn efficiency of a company looking to scale. Eligibility always comes into conversation when it comes to grant access and I will outline this below.
Examples of areas but not exhaustive that it came be used for are below:
- Support a step-change in the company capability and operational effectiveness.
- Implementing an innovative new way of working to increase quality, speed, dependability or flexibility of the company’s operations.
- Introducing new digital technology systems or customer experiences
In terms of practical uses of the grants once the company has received this grant they can put it to use with practical expenditures such as to cover salary costs for the time staff are working on the project, overheads costs, external consultancy costs and costs for project materials. So although innovation is a vital element of this grant, the costs mentioned above are still day to day costs that can be covered using the grant. Many SMEs and larger companies may not understand that this grant can be accessed.
Exporting overseas
For those companies looking to extend their reach when it comes to expansion and they may be in a more mature stage of their journey it is important to understand that there are still most definitely options there for you.
At this stage of exploring new markets or products the barrier to companies can often be the lack of funds available or that they can see a better use for them than into a product that may potentially not go to market but this is where the market research grant can come in. Enterprise Ireland provides up to €35,000 to support the costs of conducting in‑depth market research, which at the end could result in a new product or market being explored. Examples of the uses for this grant include using data‑driven comparisons to choose the most viable market for expansion, identifying the ideal customer for your product and also determining competitive landscape
Eligibility for this grant is not too complex and allows a large portion of those companies in Ireland access. The company must be Irish‑based, exporting or planning to export and able to demonstrate exposure to foreign markets or potential for international sales. This will include a large percentage of companies yet not a lot will understand that they could potentially have access to this support grant.
A wide range of expenditure is supported in terms of developing market entry strategies with a maximum grant of €150,000 for projects that may be up to 12 months in duration.
The new markets grant involves eligible companies exploring new markets or new products in existing markets and for SME’s this can be something that financially may not seem with in reach and restricts them from reaching their true potential when it comes to expansion. That is where this grant can elevate companies to the next level by giving them a bit more of a platform to research or explore new market possibilities.
Within this grant sales and marketing costs are not viable which although this are needed when entering the new market this grand more so focuses on highlighting options that are out there and could be pursued.
This grant can be accessed by those who will be directly affected by tariffs for example the US tariffs or exploring a market for expansion where they can access up to a maximum of €10,000 or 50% of eligible costs which include exploring how the market will be affected by these tariffs that have been implemented.
Entry strategies into these overseas markets can be researched using this grant and also overseas travel to view the markets in person. It is essentially to try and allow business owners and growing companies to be less restricted by geography if they want to access a new set of customers or an area for strategic growth.
Overall the world of grants can be intimidating with all the requirements to even be in the running for accessing a certain grant but with a small bit of research and the correct goals that align with the grants, the Irish scaling scene is one to be taken seriously and to be used to businesses advantage!
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