bISME Volume 1 Issue 6
THE
AUTUMN 2019
THE BUSINESS OF IRISH SMEs
Putting Perjury on the Statute Books
Senator Pádraig Ó Céidigh talks about the Perjury bill and SME policy. PSD2 READY What does it mean for online business? PARENTAL LEAVE What do Employers need to know? HOW TO STAY ON BRAND Top tips on branding for your business. BEING CURRENCY RISK AWARE What can your business do to manage currency risk in times of uncertainty?
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bISME
THE
Contents
Volume 1 Issue 6 Autumn 2019
CONTENTS 04 05
Published by iSME Editorial: maeve@isme.ie Design: janec@isme.ie Advertising: marketing@isme.ie
The bISME is the official publication of ISME. Individual views expressed in the magazine do not necessarily constitute ISME policy. Although every precaution has been taken in the preparation of this publication, the publishers assume no responsibility for errors or omissions. Copyright The bISME 2019. No part of this publication may be reproduced in any material form without the express written permission of ISME.
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A Message from the Chief Executive Neil McDonnell discusses Brexit, professional misconduct and more.
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The b Insight: How to stay on brand - tips from a brand designer
The b News News from the SME sector and the wider economy.
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The Big Interview: Putting Perjury on the Statute Books Senator Pádraig Ó Céidigh talks about the Perjury bill and SME policy.
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The b Issue: PSD2 - What does it mean for online business? Helping SMEs get PSD2 Ready. HR Advice Update on Parental Leave. 14
ISME Annual Conference 2019 A stellar line up for People & Purpose.
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Michel Nielson, Monologue gives advice on branding. A Happy Workplace Jobs.ie explain Why it’s Worth Keeping Your Team Happy. ISME at work for you The latest updates on ISME activity. Being Currency Risk Aware Billy Farrell, Fexco talks about managing currency risk for SMEs. Training Focus: SME & Entrepreneurship Strategy Conference. Another side of… Margaret O’Rourke Doherty, Network Manager, Image Skillne.
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T H E B U S I N E S S O F I R I S H S M Es
17 Kildare Street, Dublin 2, Ireland. Phone : (01) 662 2755 E-mail: info@isme.ie Web: isme.ie
THE
Category A Message from the Chief Executive
Brexit Concerns
bISME
Since my article in the last bISME, we’ve had a change of leadership in London which suggests a hard, WTO-style Brexit is much more likely to occur in October. Brexit is now the issue of greatest concern to our members. Having seen the way that the postponement of Brexit occurred in Q1, we are conscious that many businesses are reluctant to stockpile, or make other preparations involving working capital, ahead of the October 31st deadline. It is vital for you, your business and your employees that you do not fall into the ‘wait-and-see’ trap. Even if your Brexit plan is as simple as consulting with creditors, your bank, your accountant and your employees, you will achieve much more than hoping for the best. We have consolidated information from multiple sources on our Brexit Advice page, which you can interrogate for help. It is now obvious that the Department of Finance’s strategy on the Cost of Insurance Working Group will be to designate a whole host of administrative actions to be ‘Completed’ or passed to other Government departments, and to declare their job on insurance costs done. We know that nothing could be further from the truth, and that the costs of commercial motor, public liability and employer liability insurances are still rising.
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We intend to take a more muscular approach with some of the key players in the near future, and we’re asking for your help in doing so. We want you to report occurrences you consider to be professional misconduct to the relevant authorities, and to let us know about them. 1. To make a complaint about an insurance company, you must follow the Complaints Procedure set out by the Financial Services and Pensions Ombudsman. You must allow your provider a chance to rectify matters before reporting them to the FSPO. 2. Normally, the Law Society will only investigate complaints about solicitors that come from that solicitor’s client (which is unusual in itself!), however, they will take a complaint from a person who is not a solicitor’s client where there is ‘clear prima facie evidence of fraud or illegality.’ If you believe a solicitor is raising a fraudulent claim against you, you should consider submitting a complaint to the Law Society, following their guidance for Complaints
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Neil McDonnell, Chief Executive, ISME.
Against Solicitors. 3. If you wish to complain about a barrister, for example if you believe that a barrister has mislead the court in a case about you, you may make a complaint to the Barristers’ Professional Conduct Tribunal using their complaints procedure here. 4. If you wish to complain about a medical doctor, for example if that doctor has completed a medical report for a plaintiff in a fraudulent personal injuries case against you, you can do so using the Medical Council’s complaints procedure here. In all cases, we would like you to let us know about your complaint. We may be able to assist you. Please email the details of your complaint to jennifer@isme.ie, including ALLEGED PROFESSIONAL MISCONDUCT: [name]’ in the subject line of your email. This year’s Annual Conference will be our biggest and best yet. I look forward to meeting as many of you as possible on the day, which just happens to be the week before Brexit! If you’re not a member yet, or haven’t met any of the ISME team, check out our ISME Roadshow dates here. Our next few Roadshows will obviously have a strong Brexit element, but it’s not all doom and gloom! Brexit will present Irish SMEs with opportunities, and InterTradeIreland will be on hand to describe some of the new business supports available. See you there! Neil McDonnell Chief Executive, ISME
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The b Category News
USEFUL EVENTS FOR SMES Are you PSD2 ready? Wednesday 4th September 1.00pm - 5.00pm City Hall, Dublin
Go-2-Tender Workshop
Tuesday 10th & Tuesday 24th September 9.00am - 5.00pm Kilkenny Ormonde Hotel
ISME Annual Conference Not to be missed, the ISME Annual Conference will take place on Wednesday 23rd October in the Citywest Hotel, Dublin. The theme is People
Equity Advisory Clinic
Thursday 12th September 9.30am - 4.30pm Portershed, Eyre Square, Galway
& Purpose – The Power Ps of Business and the event offers top guest speakers, interviews, panel discussions, breakout sessions and a dedicated exhibition area. Book to attend or exhibit here. Read more about the conference on page 14.
Equity Advisory Clinic
Funding Advisory Workshop
Thursday 26th September 7.30am - 10.00am Clayton Hotel, Ballsbridge, Merrion Road, Dublin
SURVEY ON EMPLOYER INTERVIEWS IrishJobs.ie would like to know more about how employers conduct interviews .Please complete their survey, telling them about your normal interview process and you could be in with a chance to win a €250 One4All voucher. Answer their survey questions here.
BE BREXIT-READY ON ISME.IE Irish SMEs need to be as prepared for Brexit as they can be. We have compiled useful information, contacts and supports to help your business be Brexit-Ready. View our Brexit Advice page here
BREXIT PREPAREDNESS CHECKLIST The Department of Business, Enterprise and Innovation have created guidelines in preparation of Brexit. The Brexit Preparedness Checklist identifies essential actions businesses can take ahead of 31 October. These actions can ensure the ability to still be able to trade with the UK after it leaves the EU. The checklist includes links to relevant agencies who can provide the necessary guidance and support. Download the checklist here.
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T H E B U S I N E S S O F I R I S H S M Es
Wednesday 25th September 9.30am - 4.30pm South East Business & Innovation Centre, Waterford
ISME MEMBERS - WHAT’S ON YOUR MIND? BREXIT Businesses stock piling, especially if their supplier is in the UK, is putting pressure on the availability and cost of warehousing space. Concern about paperwork post Brexit, especially amongst businesses in border areas. Good awareness for the necessity to have an EORI number in place.
THE
Category The b News
bISME
FREE ONLINE HR HEALTH CHECK Management Support Services (MSS) provide a full range of Human Resource and Recruitment solutions, and are offering ISME Members a free online HR Healthcheck. This questionnaire is designed to ask questions concerning the key areas where there are legal obligations, or it is best practice, and will give a good idea as to whether you are getting the basics right.
A trend towards availing of credit facilities rather than paying on time. Not enough SMEs are availing of grants and supports for Brexit. Finding the application process for grants unnecessarily complex and difficult to get guidance on this. The number of patents taken up by SMEs in Ireland is drastically lower than the rest of Europe and this is having an impact on exporting opportunities.
GEOVIEW RESIDENTIAL BUILDINGS REPORT ISME Member, GeoDirectory have published their
SKILLNET IRELAND’S CLEAR CUSTOMS INITIATIVE
bi-annual Property Report view here. The Geoview Residential Buildings Report brings together both new and some of the existing information and looks at the trends over the last year in the residential
T H E B U S I N E S S O F I R I S H S M Es
property market.
MORE HR CONTENT FOR MEMBERS Check out the new look HR section in the Members Area on the website! The page is an ISME directory of all Human Resources related documentation with refreshed content including contract templates, sections on People Management, Recruitment and much more.
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Continued uncertainty around Brexit has highlighted the importance of capacity-building in the customs intermediary sector and the necessity to boost ‘inhouse’ customs capacity amongst business that are regularly trading with the UK. Delays at customs can result in disruption to both business and customers. Taking steps now to train key staff on how to effectively complete a customs declaration helps pre-empt Brexit related customs challenges. Supported by Getting Ireland Brexit Ready, the Clear Customs free training initiative developed by Skillnet Ireland will be delivered by Chartered Institute of Logistics and Transport (CILT) Skillnet at several training locations nationwide. Clear Customs offers immediate and free customs training to Customs intermediaries, and to businesses who frequently trade with or through the UK. The training programme has been designed in close collaboration with key industry associations and will be delivered by the CILT Skillnet, in conjunction with the Irish Exporters Association and Irish International Freight Association. Click here to book your place.
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The b Category News
BUSINESSES SUPPORTING THE POLLINATOR PLAN
USEFUL EVENTS FOR SMES Equity Advisory Clinic
Thursday 26th September 8.30am - 3.30pm Dogpatch Labs, North Dock, Dublin 1
Biodiversity Ireland are looking for businesses to support their Pollinator Plan to help tackle the issue of pollinator decline. We all depend on the services of pollinating insects,
with
pollinators
in
decline,
the
problem is serious. It’s easy to sign up and find a way to support the All-Ireland Pollinator Plan, as well as being a great Corporate Social Responsibility objective. Find out more here.
SEAI’s Biomass Heat Accelerator Programme
Thursday 26th September 9:30am – 1:30pm Killeshin Hotel, Dublin Road, Ballyroan, Portlaoise, Co. Laois
Local Government Supplier Engagement Event
Tuesday 1st October 10.00am - 2.00pm CityWest Hotel & Conference Centre, Dublin
Wednesday 2nd October 8.15am - 1.30pm Sheraton Hotel, Gleeson Street, Athlone
Funding Advisory Workshop
Thursday 10th October 7.30am - 10.00am Radisson Blu Hotel, Sligo
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T H E B U S I N E S S O F I R I S H S M Es
Taking Care of Business
JanineWatson
Musgrave MarketPlace SME Specialist
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Musgrave Business Park, Outer Ring Road, Waterford. Phone: 051 - 392 800 lisam@musgrave.ie
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Category The Big Interview
Putting Perjury on the Statute Books Senator Pádraig Ó Céidigh
Talk us through your career and what has led you to this point? I received my third level education in NUIG before having careers in accountancy with KPMG; as a secondary school teacher; and as a solicitor in my own law practice. I am a Harvard University Alumni and adjunct Professor of Entrepreneurship and Business in NUIG. In 2010, I was elected by Harvard Business School to be the subject of an entrepreneurship leadership case study. My business interests are many and varied. I founded Aer Arann Express and Aer Lingus Regional. I started, and have grown businesses in various industries such as publishing, music, aircraft maintenance, outsourcing, homecare, and nursing homes In 2003, I was named Ernst and Young Irish Entrepreneur of the Year and went on to represent Ireland in the World Entrepreneur of the Year. I am also the former Chair of the EY Entrepreneurial Alumni Board, chaired the Judging Panel for the Irish Entrepreneur of the Year until 2014, and was a member of the EY World Judging Panel in 2004 and 2005 - the only person ever to do this for two years running. I was NUIG Business Alumni of the year in 2002 for my contribution to the Irish economy and entrepreneurship and as Galway Person of the Year in 2004. I am currently a board member of Croke Park Teo.
Senator Pádraig Ó Céidigh
The key areas of focus for me as a Senator include influencing policy and introducing significant legislation in relation to SMEs, entrepreneurship, education, Irish language, community and culture. Another objective in this role is to create SME policy documents and present this directly to government ministers. As a fluent Gaelic speaker and Connemara native, the Irish Language and Culture is also hugely important to me and this has also been my focus in the Seanad. Tell us about your work in drawing up the amendments to the Perjury & Related Offences Bill 2018? We carried out detailed legal research about this issue, and in doing so amended over 100 pieces of existing legislation for the purpose of consolidating and streamlining the law on perjury. I engaged with stakeholders and the input I received was used in the formulation and drafting of this Bill. I worked with my colleagues in Seanad Éireann, the Minister of Justice and his departmental officials, in order to ensure that this legislation was correct. Cross party support has been very important and significant in developing this Bill through the Seanad.
The key areas of focus for me as a Senator include influencing policy and introducing significant legislation in relation to SMEs Why is this Bill so important and how does it impact businesses? Perjury is currently a common law offence in Ireland and, it is rarely prosecuted. Placing perjury on the statute books is not just about penalising those who commit perjury, but it is primarily about preventing those from doing it in the first place. Tough sanctions may make someone think twice about lying and diverting the course of justice. I hope that this Bill will have a practical impact on business especially SMEs. Over the years I have personally known scores of small business owners who suffered significantly, because someone knowingly lied
in court. In some cases, their businesses went under
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T H E B U S I N E S S O F I R I S H S M Es
Tell us about your role as a Senator?
as direct results of people committing perjury. Of course, my initiative to place perjury as a statutory criminal offence is not just about addressing fraudulent personal injury claims, although that is a very important component, it is about bringing accountability to all those who lie in our courts, our commissions and our tribunals. The definition of perjury refers to material statement made lawfully by a person, knowing it to be false and for the purposes of a judicial or other proceeding including tribunals and commissions of investigation. People who persuade, or causes another person to commit perjury, are also potentially liable under this bill. At what stage is the Bill and what are the next steps? The Minister for Justice has confirmed that he will bring the Bill through the Dáil upon its return in midSeptember. I very much appreciate the support in my effort to get this very important piece of Legislation enacted, and, on Irish Statute books.
My initiative to place perjury as a statutory criminal offence is not just about addressing fraudulent personal injury claims
You were the rapporteur for the Seanad Public Consultation Committee Small and Medium Sized Businesses in Ireland report published in May 2019 – what were the key findings from this report and implications for the SME community? The overall aim of the Seanad Public Consultation Committee process is to create the basis for an integrated national strategy proposal document supporting the fostering, growth and sustainability of indigenous Irish SME’s in becoming a solid foundation for the long-term success of the Irish economy and our people.
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Some of the key recommendations include: •
Introduce a new dedicated Junior Ministerial role for SMEs.
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Review and improve the CGT entrepreneurs’ relief by bringing in a 12.5% rate with a lifetime cap on gains.
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Create and showcase a national database of investor-ready accredited start-ups to help connect start-ups with investors.
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Ensure entrepreneurial education is embedded into the formal education system.
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Develop a national strategy on female entrepreneurship and aim to be a leader in this among EU countries.
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Introduce SME-specific provisions to the R&D tax credit regime.
THE
Category The Big Interview
bISME
Senator Pádraig Ó Céidigh at the launch of SocioEconomic Gaeltacht
From your experience in business what are the major business challenges you have overcome? Over the years there have been many challenges and off the top of my head I would rate them as follows: 1.
Creating and growing a regional airline with the various challenges that involved.
2. Getting key stakeholders to believe in me and my vision. 3. Sourcing finance. 4. Building an effective team. Do you have a business mentor/ person you admire? I have many, but one person I really admire is Martin Naughton of Glen Dimplex. What advice would you impart to an SME business in today’s competitive climate? For any business, but SMEs in particular, I would say don’t work yourself to a standstill or bad health. Your business does not define you, it is separate entity and it has a specific role to play – it is not your life. Passion, planning and people are the three ‘Ps’ that many business owners attribute to their success. Would you agree with this mantra and/or what else makes a business successful? I agree with the three P’s above, however I would a 4th P – perseverance, and a little bit of luck. The theme of the ISME Annual Conference this year is People & Purpose – The Power Ps of Business. How important do you think they are in today’s challenging times for SMEs? A very interesting and relevant theme, in my opinion, companies don’t grow, people grow and as a result your people grow the business. Senator Pádraig Ó’Ceidigh is one of the panelists for the Great Debate at the ISME Annual Conference. Click here find out more about the ISME Annual Conference on 23rd October.
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The bCategory Issue
PSD2 – what does it mean for online business? The E-Commerce Association of Ireland (eCAI) is leading a campaign to raise awareness and give good practical advice on what steps you can make to be PSD2 ready. “If you are not compliant by September 14th 2019, there is a risk all of your payments will be declined and business will crash”, says eCAI Chairman, Niall Bodkin. What is PSD2? In September 2019, Strong Customer Authentication (SCA), a new regulation for authenticating online payments, will be rolled out across Europe, as part of the Second Payment Services Directive (PDS2). There are four main areas covered across the Directive a change in the geographic scope covering payments to and from EEA countries; a prohibition in card surcharges across Europe; third party access to information; and increased security of online payments and account access.
What do SMEs trading online need to know? Be aware that SCA stipulates that merchants must have a two-step security layer on their system when taking payments. It's already been used for years with 3Dsecure or Verified by Visa. Now it's compulsory so you should make sure changes have been made on your systems in order to be compliant. How best can online traders be compliant? Talk to your provider or developer. You may already be compliant; some providers update their payments system automatically however it's ultimately you who is responsible. Will an extra barrier on your payment wall slow down sales? Probably, in the short term, that’s why it’s so important to get it right. Developers and Payment companies have a renewed focus around User Experience (UX) in an attempt to minimise the friction, the two-step authentication may throw up. Our advice is to get your UX right. The payment process should be a slick, enjoyable even. That second authentication process could be your fingerprint or near field communication. New technologies and processes are emerging. We don't know how we will be paying for goods in five years time. PSD2 has opened up payments exponentially.
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Will businesses be fined if they are not ready by September 14th 2019? There is no “fine”, it's worse than that. If you have no SCA in place, then all your transactions will be declined. If eCommerce is core to your business, then your business stops overnight. Ultimately, if you don't have the changes made, the bank will send back a declined message and the payment won’t go through. This will happen to every payment until you become compliant. There is talk of an extension or grace period for eCommerce related PSD2 clauses only, but nothing yet has been confirmed. How will PDD2 improve online payments? PSD2 opens up banking payment, making it more competitive, transparent and secure. Essentially it is gives third party companies access to personal banking data, normally the reserve of the card issuers and payment processors. It aims to bring about a more efficient and integrated payments market across Europe. The key to the directive is that it will help to promote competition, deliver better value to the bank’s customers, and increase protection against fraud. PSD2 also aims to create consistency between payment forms such as online and mobile payments. In the future banks will no longer be allowed to charge payment initiation services.
The eCAI will be holding a PSD2 Ready Seminar with their partners on Wednesday, September 4th in City Hall, Dublin. It will bring together all the top banks and payments professionals to showcase the changes, new payment methods and future tech solutions. To find out more and keep informed about PSD2 go to www.psd2ready.ie.
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T H E B U S I N E S S O F I R I S H S M Es
Niall Bodkin comments: “While all four directives will pose new challenges for banks globally, it is clear that the latter two will have the greatest impact when it comes to the SME digital banking sector.” He added: “The global payments landscape, not just in Europe, has profoundly changed in part with the arrival of Fintech’s and other non-traditional PSP’s. There is a greater need for security and diligence in proper identification of users of payments services.”
THE
Category HR Focus
bISME
Parental Leave (Amendment) Act 2019 – What do employers need to know? From 1st September 2019 the Parental Leave entitlement is scheduled to change due to the Parental Leave (Amendment) Act 2019. While the core details of the act remain unchanged, employers do need to familiarise themselves with the update in order to ensure that they are prepared for any requests that they receive from employees. To avoid a situation where employees are out of the business for an additional four – eight weeks absence which could be very disruptive, employers are advised to negotiate with employees to have the leave taken incrementally over an extended period which would be a more manageable proposition. If this is the case employers will need to consider introducing a ‘Flexible Working’ policy to ensure that there are clear guidelines established. Even though employers are required to provide Parental Leave when it is requested, if there are objective grounds, they can postpone issuing it by up to six months. This can only be done up to the point before the leave is formally confirmed and authorised, after which point the leave cannot be postponed.
The existing Act allows for employees who are parents and have completed one years’ service, to take up to 18 weeks unpaid leave for any children they have up to the age of 8. Parents of a child with a disability or long-term illness up to the age of 16 can are eligible.
T H E B U S I N E S S O F I R I S H S M Es
The leave is considered to be reckonable service, meaning that all normal entitlements accrue such as Annual Leave and employees receive payment for public holidays although the parental leave is unpaid and pension contributions are not to be made. There is a phased extension to the leave period, first from 18 to 22 weeks on the 1st September this year, and then from 22 to 26 weeks on 1st of September in 2020. As well as this, the age of entitlement to make a claim for a child has increased from 8 to 12 years of age. The provision for children with disability or long-term illness remains unchanged. While the full increase to 26 weeks is significant, it is hoped that employers will not be adversely impacted as recruiting cover for a six-month period is deemed to be more realistic proposition than sourcing adequate cover for a little over four months. The main challenge that ISME envisage for employers is the entitlement of employees that have already utilised the 18 weeks under the existing legislation to take the balance of either 22 weeks or 26 weeks for any children up to the age of 12.
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Employers are required to retain details of Parental Leave for up to eight years in the event of a query from the relevant authorities. If employers are unable to return an individual to their original position, they must be offered a suitable alternative with terms and conditions that are equal to or better than their previous agreements. It is important to note that failure to return an employee to their original position could result in a case of unfair dismissal. For this reason, ISME advise that an employer should seek advice from a Human Resources practitioner should this situation arise. For HR queries please contact our HR Advice team on hr@isme.
Mark O’Connor HR Adviser
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Category
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THE
Category ISME Annual Conference
bISME
It’s all about People & Purpose
T
he business event not to be missed in 2019 is ISME’s Annual Conference which will take place on Wednesday 23rd October in the Citywest Hotel, Dublin. The theme of the conference is People & Purpose – The Power Ps of Business which will look at the importance of these key elements to business success and growth. Commenting on the conference, ISME CEO, Neil McDonnell said: “2019 was meant to be the year when uncertainty cleared. Instead, it abounds. Which makes it more important than ever for enterprises to be able to define a clear purpose for their business, and to have the right people to fulfil that purpose. This is not easily done in a market at full employment, with skills shortages in many areas. This year we’ll focus on how your business can do both for the times ahead.” Conall Ó Mórain will chair this action-packed day which includes networking, breakout sessions, guest speakers, interview, panel discussions and a dedicated exhibition area. We are delighted to be joined by fantastic line-up of speakers and panellists including: Broadcaster, publishing entrepreneur and human rights campaigner Norah Casey who will discussing the theme People & Purpose An Interview with Marc O’Dwyer, CEO, Big Red Cloud
Dr Laura Bambrick
David Davin Power
Panellists for The Great Debate –- Is it just about the bottom line? Does people & purpose really matter in business? Include: Gillian Nelis, Sunday Business Post Conall Mac Coille, Chief Economist, Davy Senator Pádraig Ó’Ceidigh Richard Boyd Barrett T.D., People Before Profit Dr. Laura Bambrick, Congress Social Policy Officer, ICTU We will have four breakout sessions during the day, details to be announced in September. It will be less than ten days until UK leave the EU when the conference takes place and we’ve assembled a terrific group of speakers for the mainstage Brexit panel discussion as follows: Moderator: David Davin Power, columnist with The Times Ireland, former Northern Ireland Editor, RTÉ Shanker Singham, Alternative Arrangements Commission; Chairman and CEO of Competere Hermann Kelly, Director of Communications EFDD Group, European Parliament; Irexit Freedom Party Lisa Chambers TD, Fianna Fáil Dr Karen Devine, Department of Law and Government DCU (home of the Brexit Institute) ISME is thrilled that this year’s conference is sponsored by Jobs.ie and the media partner for the thirdyear running is the Sunday Business Post. At the announcement, Christopher Paye, General Manager of Jobs.ie commented:
T H E B U S I N E S S O F I R I S H S M Es
“As Ireland has moved towards full employment, the power balance within the recruitment market has shifted from employer to jobseeker. This combination has resulted in many SME’s facing increasing difficulties attracting the right people to work in their business, which is vital to ensure growth and sustainability. We’re thrilled to be working with ISME and their members throughout the year, highlighting issues and offering insight into the mindset of the jobseekers in Ireland.”
Norah Casey
Full programme details will be announced in early September, click here to view the video from the 2018 conference. You can book your tickets and exhibition space now, find out more here.
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Christopher Paye, CEO Jobs.ie, Neil McDonnell, CEO ISME & Noel Killeen, The Sunday Business Post
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The b insight
How to stay on brand – tips from a brand designer Michel Nielson, Creative Director, Monologue
B
rands are everywhere. You’re exposed to them from the moment you wake up (apps on your smartphone, toothpaste packaging etc.) and they all want your loyalty. Do you always buy the same cereal, the same make of jeans and the latest iPhone? You’re not alone – we’re all victims of brand promises. But with big brands usually comes big budgets. So how can small businesses compete? In this article we’ll discuss a few things you can do without spending any money. Done right – the basics of a good brand strategy doesn’t have to cost much (except your time) and the results, whilst not immediate, will make a difference to your bottom line over time. 1. Ask ‘why’ To build a brand you need to get to the core of the business and the quickest way is to ask ‘why’- why did you start the business? Why do you deserve your customers? Why do you solve their problems better than your competitors? You may struggle to answer these questions immediately but eventually it should lead to an exploration about what your business does that’s unique, how you take away your customers ‘pain’. This is a really important part of developing your brand. Understanding the ‘why’ will give you an edge over your competitors and a better understanding of how to position your brand. Remember - ‘what’ doesn’t sell nearly as well as ‘why’. 2. Be authentic
If you want people to believe in your brand you have to give them a reason to do so. That reason is authenticity. Nothing is more damaging to a brand than shifting values and beliefs for instant validation. Building a strong brand starts with trust and that has to be earned. Trying to be a
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brand for everyone will eventually lead to a brand for no one. Not everyone is going to appreciate what your brand is about – and that’s fine. Good branding is about segmentation. Select your ideal target and customer and make sure your brand is appropriate. 3. Use emotion When asked – most people would claim to use logic and reason when deciding what to purchase. From grocery shopping to car shopping – we are governed by our brain rather than our heart, right? Well, yes - our heart doesn’t have a say. However, the part of our brain that makes decisions on buying is not the part that’s in charge of logic. Instead, we use a part called the Limbic System which is the part that controls emotions. Which explains why advertising works - ad agencies have always known that effective advertising use emotion to sell. Strong brands can charge a premium on their products and services because they have managed to associate a particular feeling or emotion with their brand (Mercedes = ‘luxury’, Apple = ‘it just works’ etc.) that other competitors, with similar products, can’t match. The truth is - without a strong brand your product or service becomes a commodity and you have only one way to differentiate yourself from your competitors – price. If you want to know more about branding and how you can stand out from your competitors, feel free to get in touch through our website or via email. We’re also on Facebook, Twitter and Instagram. And this is our blog!
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Why it’s worth keeping your team happy Christopher Paye, General Manager in Jobs.ie speaks about encouraging and building camaraderie among colleagues for a happy workplace. • 17% felt the introduction of a buddy system would help maintain a positive working relationship with colleagues. Despite the multitude of clear benefits, many employers and managers are failing to proactively facilitate workplace socialising or meet the expectations of their employees looking to develop closer bonds with each other.
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ost of us have experienced working in both happy and less-than-happy workplace environments.
It means that we understand that, in most cases, what facilitates the former is friendship and camaraderie among colleagues. The benefits of strong peer friendships include: greater productivity, less or hardly any workplace tension, a more collaborative working culture, and greater staff retention.
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The latter point has renewed importance, given the competition for talent in a labour market that is at virtually full employment. It’s particularly important to build good relationships between colleagues in SMEs companies where smaller numbers mean people work more closely together. Employees want to socialise Our recent Jobs.ie survey of workers on the topic of workplace friendships identified several practical steps that employees would like to see introduced by their employer to strengthen relationships between colleagues at all levels. • 69% of employees said they would like to see work nights out organised more regularly. • Almost 3 in 10 workers (28%) would like their employer to support the creation of a social and wellness committee
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• More than half (53%) of employees claim their employers do not actively encourage socialising with colleagues. • Only 22% of those surveyed have a workplace social or wellness committee • 21% say their employer organises nights out • Just 5% organise team away days.
“It’s particularly important to build good relationships between colleagues in SMEs” Create new opportunities It’s worth taking note of these trends. The good news is that it doesn’t have to mean big investment, either. Start small by funding a group social activity on a weekday evening, or marking a team win or the completion of a project by going for dinner or an after-work drinks. It doesn’t have to centre around a night out, either. Many companies are encouraging organised lunchtime walking or running groups, or involvement in sports like summer tag rugby. If you are a manager or business owner, then the simplest way to ensure an open and positive relationship with colleagues and peers is to keep your door open. That way, team members will feel like they can talk to you about any issues or concerns they have. Remember that a happy workforce creates a happy workplace. Jobs.ie are partnering with ISME at our Roadshows. Join us at our next Roadshow, full details can be found here.
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www.creditreview.ie
The b Insight
If your business has had credit facilities refused, reduced or withdrawn by your bank*, we’re here to help. If you’re a small business, sole trader or farm owner who has had difficulty getting credit or loan facilities of up to €3,000,000, or has had an unfavourable change to your existing credit terms and conditions, get in touch with us for an independent review. Our process is independent, easy to complete and covers all applicants for new loans or restructured credit facilities. *banks covered are AIB, BOI, PTSB and Ulster
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take a closer look at the decision.
ISME at work for you ISME & GREY MATTERS NETWORK PARTNERSHIP ISME Skillnet are delighted to partner with The Grey Matters Network - an organisation that leverages the experiences of hundreds of real hands-on practitioners who through their own careers have operated at the most senior levels. This partnership gives ISME Members an opportunity to access their network of over 400 veteran business professionals at a special rate and avail of a 20% discount on a half day face-to-face exploratory session with a Grey Matters Network Associate (save normal price of €500+ VAT, ISME Member rate €400 + VAT). To avail of this offer email info@thegreymattersnetwork.com and they will contact you to identify the best Associate for your business needs. The information provided to The Grey Matters Network will be strictly confidential.
GETM3 WORKSHOP ISME is a valued business partner on this Erasmus funded programme. This project seeks to address skills mismatches and difficulties in attracting, managing and retaining young talent, something we frequently hear from owner manager members. ISME’s Adam Weatherley attended this workshop hosted by Northumbria University in Newcastle 24th - 28th June. The workshop was used to create concepts for an online employer toolkit that will provide a hiring manager a strategic approach to an interview, providing the structure and the questions to ask candidates when looking for people with the right fit for their business.
DATES FOR YOUR DIARY Essential HR Fundamentals Wednesday, 4th September Dublin Effective Sales Planning and Lead Generation for SMEs Wednesday, 11th September Dublin ISME Roadshow Thursday, 12th September Mount Wolseley Hotel, Carlow HR & WRC Thursday, 12th September Mount Wolseley Hotel, Carlow Intermediate Excel Training Wednesday, 18th September Dublin Cold Calling and Appointment Making Tuesday, 24th September Dublin Time Management and Goal Setting for SMEs Wednesday, 25th September Dublin
Work and play: The GetM3 team consists of delegates from DCU, TUD and 6 other universities from Poland, Slovenia, UK and South Korea. There is employer representation from ISME and enterprises from the UK, Poland and Slovenia.
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ISME is a business partner in 3 Erasmus+ projects working with universities across Europe. Erasmus+ has opportunities for a wide range of organisations, including universities, education and training providers, think-tanks, research organisations, and private businesses.
ISME QUARTERLY BUSINESS TRENDS SURVEY The results of the ISME Quarterly Business Trends Survey for Q2’19 was released in July with 10 out of 12 confidence indicators showing declines, approximately on par with previous quarters. While employment trends are as expected, Business Confidence started to increase in 2019, going up by 5% in this quarter. The three predominant SME concerns for this quarter were reported as Brexit at 17%, economic uncertainty at 14% and insurance costs at 14%. The Trends Report also captures data on employee pay, broadband services and business and motor insurance costs in the SME sector. Read the full report here.
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Category ISME at work for you
DATES FOR YOUR DIARY Team Management and Leadership for SMEs Wednesday, 2nd October Dublin Customer Service and Complaints Handling Thursday, 3rd October Dublin
ISME BUSINESS MANAGEMENT PROGRAMME 2019
Employment Law Friday, 4th October Dublin
Commencing 3rd October 2019 at DBS, Exchequer Street During 2019, 20 SME owner managers are currently completing this programme. The feedback has been truly excellent.
Handling Inbound Sales Calls Tuesday, 8th October Dublin
‘’The interactions and discussions in the classroom situation combined with our group meetups were the best part of the programme. It was here that I gleaned the most valuable information and little titbits the I can bring back to my own company.’’ Larry Burke – General Manager – Eurogene AI Ltd - Dip. Business Management - DBS.
Closing the Deal Thursday, 10th October Dublin
DIPLOMA IN BUSINESS MANAGEMENT FOR SMES
Develop Your First Google Ads Campaign Thursday, 17th October Dublin
Join us for a new induction day for this programme on October 3rd at The Dublin Business School on Aungier Street. The programme will run for 6 months with 10 contact days in total and consists of 6 modules delivered by experts with worldly commercial SME experience.
ISME Annual Conference 2019 Wednesday, 23rd October Citywest Hotel, Dublin
For details email skillnet@isme.ie. The modules include: 1. Human Resource Management 2. Marketing & Sales Management 3. Communication Skills 4. Interpreting Financial Information 5. Coaching & Mentoring 6. Management Principles
Commencing 11th September 2019 at Griffith College, Dublin We will be running programmes in the college’s three campuses in Dublin, Cork and Limerick. •
QQI Level 7 Speical Award
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This is an eight-day executive programme.
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Two days of project supervision and feedback.
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Units include Business Analysis and the Business Environment, Practical Marketing Management, Digital Marketing and Sales Management.
Email skillnet@isme.ie for further details
Presentation Skills for SMEs Wednesday, 30th October Dublin
ANNOUNCING NEW TRAINING TOPICS: We will be running several new courses in a variety of areas. If you would like to participate in any of the below courses, please contact us at skillnet@isme.ie. •
Contract Negotiation Skills
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Essential HR Fundamentals – This is for non-HR people who need an understanding of the role.
REGIONAL TRAINING We would like to provide training for our members around the country and would like to hear from people with training requirements outside of Dublin. Please email us at skillnet@isme.ie
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CERTIFIED MARKETING & SALES FOR SMES
Office Productivity-Effective Use of Microsoft Suite Thursday, 24th October Dublin
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Finance
Being Currency Risk Aware Billy Farrell, National Sales Manager, Fexco
With Brexit uncertainty set to continue and sterling declining, how should SMEs manage conversion rates and currency risk?
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or Irish businesses trading overseas, particularly with Britain, currency fluctuation is a major concern. Since the Brexit referendum in 2016, sterling has declined steadily, losing around 15 per cent in total against the euro. As Boris Johnson has vowed repeatedly to take the U.K. out of the EU on 31 October, with or without a deal in place, a chaotic no deal exit could see sterling drop further. However, a deal with the European Union would surely revitalise the troubled pound meaning the cost of goods will once again become more expensive for importers.
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Margins can be tight when trading overseas. Any sharp downturn in the conversion rate could be detrimental to a small business. Managing currency risk needs to become another risk element in a wider business management strategy. Smaller businesses need to realise that managing currency risk is a long-term strategy in overall business process planning. When making international payments, SMEs very often have only one or two staff in its Accounts Payable (AP) operation and duties can often also extend beyond the finance function. This leaves less time for proper currency risk management and a ‘let’s wait to see what happens’ mindset is often commonplace when buying or selling currency. When repatriating revenue, larger businesses have the added advantage of having overseas subsidiaries paying and receiving in local currencies. This greatly reduces the amount of revenue subject to currency exchange. A recent report from the European Central Bank highlighted how banks are earning hundreds of millions a year from overcharging small corporate clients for foreign exchange services. Smaller corporate clients tend to pay higher rates for protection against swings in exchange rates. Speaking on the report, Billy Farrell of Payments and FX specialists Fexco commented: ‘This lack of transparency on FX is bad for Irish business and underlines the overcharging and underserving of smaller businesses by the banks.’
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The report also revealed that banks collect an extra €638m a year on average as a result of discriminatory pricing in euro dollar contracts. Farrell added: ‘Many of our new clients are SMEs with overseas payments requirements who appreciate the transparency on FX services offered by non-bank payment providers like Fexco. Many are also availing of hedging products like forward contracts to protect against volatility in currency markets’ . Farrell explained that Fexco’s approach is a consultative one, engaging with the business to try and understand its appetite for risk and then formulating a bespoke payment solution to meet requirements. ‘As more businesses expand their global footprint, payment requirements can become more complex due to bank account formatting issues and regulation. Businesses also need to think beyond FX costs when overseas trade increases and as the need to on-board more international suppliers becomes greater. SMEs are now realising significant cost savings by automating their international payments processes. Our solution not only saves on payment fees and FX rates, it also integrates seamlessly with accounts packages to reduce time on manual tasks like data entry and reconciliation – major time constraints for businesses great and small’. To discuss how Fexco can save your business times and money, contact Billy Farrell, National Sales Manager: Mobile: 087 9077714, T: 1800 246 800 or E: BFarrell@ fexco.com or fcpsupport@ fexco.com
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Government announces the development of a major new SME policy as part of Future Jobs Ireland
They made the announcement as they hosted a conference to discuss a draft roadmap for SME and entrepreneurship policy, which was prepared by the OECD for the Department of Business, Enterprise and Innovation. The draft was informed by extensive consultation and is the precursor to a wider review by the OECD. At the conference An Taoiseach, Leo Varadkar said: “We need to change the way we work. As a country we need to see lifelong learning as the norm, so we are adaptable to new technology and sectors. So, we have committed to doubling our Lifelong Learning rate by 2025.”
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Productivity is an issue for SMEs – they have stagnated since the financial crisis. Between 2007 and 2014, productivity was down 20%.
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Internationalisation: Only 6.3% of Irish SMEs export outside of Ireland, other than the UK. This is a huge opportunity for Irish enterprise.
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There is too much dependence on the UK market.
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Draft an SME and entrepreneurship strategy document, which will take in entrepreneurship, start-ups and SMEs.
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Scale up current initiatives to support SME exports, such as Trading Online Vouchers, Enterprise Ireland’s Exporter Development Department and InterTrade Ireland’s grants and funding Advisory Service.
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Scale-up the policy focus of Local Enterprise Offices to include SMEs and incentivise them to reach out to local SMEs in their activities;
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Establish an interdepartmental committee on SMEs and entrepreneurship.
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Simplify the process for applying for Research and Development tax credits, to reduce the uncertainty and encourage more take-up by SMEs.
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Implement a simple online diagnostic assessment tool for micro and small enterprises by the LEOs to better match the enterprise with advisory and mentoring services.
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Promote the role of standards to drive enterprise competitiveness. Standards development and use can enhance productivity in SMEs, facilitate supply chain linkages and international collaborations, and enhance spill-overs from multinationals to SMEs.
Minister Humphries commented: “Typically, our foreign-owned firms are highly productive, however in recent years we have seen a decline in productivity in indigenous SMEs. We want to close this gap and our new SME policy will help us to do that.” Ulrik Vestergaard Knudsen, Deputy General Secretary, OECD presented the Irish findings from the OECD report, to be published in October. Some of the emerging OECD recommendations include: •
Indigenous Irish companies need to play a bigger role in the future of SMEs.
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Lack of access to finance – between 2012 & 2017 only €80M was dispersed to Irish SMEs compared to Flanders, a similar sized region, who dispersed €300M in the same period.
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Encourage a wider take-up of Skillnet Ireland programmes to develop management capabilities in Irish SMEs, with a particular focus on technology skills.
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Financial reform is urgently needed, and an Action Plan will be required for 2021-2023. Ulrik Vestergaard Knudsen, Deputy General Secretary, OECD
The conference brought together SMEs, policy makers, programme providers and international experts to look at a range of policy interventions in the area. Conversations had a particular focus on improving productivity among indigenous SMEs, a cornerstone of Future Jobs Ireland. ISME’s Adam Weatherley was at the conference and in an interview with The Irish Examiner on 13th July said: ‘’The OECD had helped shape plans to get many more SMEs to tap exports’’. To find out more about developing and improving your management competencies click here or contact skillnet@isme.ie.
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ISME attended the SME & Entrepreneurship Strategy Conference on Friday 12th July in the Aviva Stadium. At the event, An Taoiseach, Leo Varadkar, TD, Heather Humphreys, TD, Minister for Business, Enterprise and Innovation, and Pat Breen, TD, Minister of State for Trade, Employment, Business, EU Digital Single Market, and Data Protection announced that the Government is developing a major new policy on SMEs and entrepreneurship under Future Jobs Ireland.
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Margaret O’Rourke Doherty, Network Manager, Image Skillnet What did you do before you became Network Manager with Image Skillnet? I have reinvented myself a number of times throughout my career. I have a strong background in management and leadership in a range of sectors including hairdressing, sales and marketing, floristry, agriculture, and food. Tell us about the work you do with Image Skillnet and plans for the future? Image Skillnet is a dedicated training national network that supports workforce development in the hair and beauty sector. Our network supports SMEs nationwide to gain the skills needed to develop their organisations in an enterprise-led manner. The network was established in 2017, and has seen significant growth due to the demands from industry. Our aim in the next few years is to extend the supports we offer our members.
Tell us about the fundraising activities you’ve done over the years? Over the years, I have actively fundraised for charities such as Concern, Jack & Jill, Down Syndrome Ireland, and Cystic Fibrosis. I have also traveled to Kolkata (formerly Calcutta) as a volunteer with Hope Foundation, as well as volunteering my time with a range of community groups and boards. How did the trip to Kolkata affect you? What I witnessed was powerful and impactful. So many people have so little and living in conditions that are unjust and inhuman - yet they are rich in the things that matter; family and love. This is something that is often taken for granted by so many. This trip also reaffirmed that things change by Helping One Person Every day, by paying it forward, respect, and inclusion. Do you believe businesses being involved in their community or with charities, can benefit their business and why? Absolutely. It is vital that a business strives to fulfil their corporate social responsibility, and it is also a baseline expectation by consumers. The reputational benefit to a business in terms of PR can be great, as your customers will associate your brand with having a social conscience and as an organisation that gives back.
Margaret volunteering with the Hope Foundation in Kolkata.
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What interests do you have outside of work? Outside of work, I am married to Trevor and I have two amazing daughters. My priorities are about raising children with strong values, spending time with my family, and trying to maintain a level of fitness while enjoying life! If I am honest, work-life balance is an area I struggle with. I am very passionate and I really enjoy my work, so I often find work creeping into my personal time. This requires making a continuous effort not to let this happen. You have been involved with community activities, why? I believe we all have a social responsibility to make this world a better place. I love being part of positive change, and have been involved with a variety of charities, projects and social enterprises for years.
There are often multiple ways of supporting, and it isn’t always about cash - expertise can often be more valuable than money. Releasing employees to volunteer can also have the additional benefit to the business of building engagement. Finally, it is important to let your customers know about the good work your organisation is doing. How has the work you’ve done impacted or been influential in your business life? Image Skillnet was established through a vast amount of volunteerism - our board and steering group are all voluntary and give freely of their time to support the industry. My experience to date has strongly influenced my business life and has continually fuelled the develop of an innovative social enterprise that responds to the needs of its members. Find out more about Image Skillnet here.
A series that highlights the lives and interests of ISME members and staff. In this edition, The bISME talks to Margaret O’Rourke Doherty, Network Manager, Image Skillnet and her work with fundraising and community
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Get in touch... to design bespoke SME training, to meet your needs
01 6622 755 skillnet@isme.ie
33% discount for ISME Members
isme.ie/learning
ISME Skillnet is co-funded by Skillnet Ireland and member companies. Skillnet Ireland is funded from the National Training Fund through the Department of Education and Skills.
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