Government must shift focus to small indigenous business
At the National Economic Dialogue in Dublin Castle today, Thursday 27 June, the Small Firms Association (SFA) called on Government to shift its focus from multinationals to small, indigenous businesses in Budget 2020.
Sven Spollen-Behrens, SFA Director, stated: “Due to rolling Brexit uncertainty and slowing global growth, we need to make sure that our economy is more resilient to external shocks. Currently, we have a situation where, even with a strongly growing economy, only half of SFA members tell us that their businesses are growing.
“It is clear to those of us working with small businesses that there is a solution that would mitigate both these macro and micro challenges. We need a national Small Business Strategy, placing a clear focus on the 98% of businesses employing half the private sector workforce, which are the lifeblood of towns and villages around the country. It is time for a plan to boost the number and performance of small businesses. It would give these businesses a better chance of succeeding and provide Ireland with a more resilient indigenous enterprise base.”
The priority measures proposed for Budget 2020 under such a strategy are:
· All Budgetary measures should be assessed for their impact on small firms. No measures that impose additional costs on small companies should be introduced.
· The self-employed Earned Income Tax Credit must finally be brought to the same level as the PAYE tax credit.
· Capital gains tax rates need to be reviewed – the 33% rate and the restrictive limit on Entrepreneur Relief is a poor reward for years and often decades of hard work to build a business.