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MESSAGE FROM THE CEO
Dear Member, Last year, we looked forward with optimism to vaccination as our Covid get-out-of-jail card. Twelve months later, it is difficult to see if we have moved on. As we deal with emerging variants of the virus with various iterations of social restriction, what has yet to emerge is a coherent societal strategy to live with it (or any future viral pandemic). We need a strategic approach to further outbreaks for 2022. After intense lobbying of Government, the SCARP legislation was commenced in November. It is designed to provide an affordable examinership process to small business. The Great Recession was characterised by banks moving their debtors into insolvency. A decade later, the banks are far better capitalised, and are comfortable with Ireland’s new bankruptcy and personal insolvency environment. This time, it will not be the banks moving on SMEs, it will be other SMEs. The huge losses incurred during the pandemic must ultimately land on someone’s balance sheet. We have already seen the fate of some high-profile commercial retail tenancies decided in court, and more will follow. So, it will be very interesting to see how commercial creditors and landlords engage with SCARP as we work through the red ink of Covid in 2022. We thought 2021 was the year we would make some serious progress on insurance reform. How wrong we were. It took the judges months to agree an inadequate reduction in awards levels via a Judicial Council process that may yet be found unconstitutional! Successive decisions in the High Court have confirmed the reality that occupiers’ risk is essentially strict: if it happens on your premises, you’re to blame. How our sport clubs and voluntary bodies will survive under this burden, no one really knows. The Occupiers’ Liability Act requires urgent reform. Our laws on liability also need to address gratuitous unfairness in deciding foreseeability, negligence, causation, mental harm, contributory negligence, and liability in dangerous recreational activity. The Department of Justice must commit to a radical program of Courts Service administrative reform, and capping legal costs in the Circuit and High Courts. While both the domestic and multinational arms of our economy power ahead, they continue to diverge, with the latter expanding at far greater speed than the former. As this coincides with a rapidly expanding state sector, it is difficult to see how domestic small enterprise can avoid being squeezed out of our economy. This is a socio-economic issue no political party has decided to address. While there is near unanimity among politicians of the importance of small enterprise, no one wants to do anything about it. ISME has long sought a third state agency to address the needs of small enterprise. Among the political parties, it is interesting that only Sinn Féin supports this. Lastly, I would ask you to take some time away from the rush and din of your business to think strategically about where it will go. Remember, the most kinetic time in every economy is when it is emerging from a recession. The amount of property that changed hands after the Great Recession was phenomenal. Similarly, the gradual ending of pandemic restrictions will mean the death of some businesses, but the birth of many more. You haven’t already had a deep dive into your future business strategy, tight now is the time to do it, and we can direct you to expert advice on how to do that. May I, and all the ISME staff wish you a successful, prosperous and interesting 2022.
Neil McDonnell | CEO | neil@isme.ie
NEW MEMBERS: NEW MEMBERS
New members:
Big Red Box Cmchygea Colco Distributions Ltd t/a Wexbury Spirits Datadyne Donberg Electronics Ltd Dublin Mind Clinic Dynamic Marketing ETC Consult Ltd. eTeachers Global Ltd Evad IT Solutions Free DAB Digital Broadcasting Ltd Funtasia Theme Parks Glana Controlled Hygene Leaconbi Mark Cadam ltd Mary Grimes Catering MCS Computers Limited Milan Gaming Ltd ta Funfair Casino Profit with Purpose Progressive learning and coaching Seapoint Leisure Sesame Building Services Ltd. She Means Business Speak for Success International The Compliance Team Utisb Consulting Ltd
NEWS NEWS Humanitarian Support Scheme for SMEs affected by Storm Barra now open The scheme is a humanitarian support payment towards the costs of returning small businesses, sporting, voluntary and community premises to their pre-flood condition including the replacement of flooring, fixtures and fittings and damaged stock where relevant. The scheme will not provide a contribution to loss of earnings or loss of business goodwill. This financial support will have two stages: • The first stage will commence immediately and will provide a contribution of up to €5,000, depending on the scale of damage incurred. It is anticipated that this will meet the needs for the majority of those affected. The intention is to process payments as fast as possible. • In the event, that the premises have incurred significant damages above €5,000, businesses can apply for additional financial support, following an assessment by the Irish Red Cross. The total level of support available for both stages combined is capped at €20,000. Applications forms for support will be available on the Irish Red Cross Society website here. Small Companies Administrative Rescue Process The Companies (Rescue Process for Small and Micro Companies) Act 2021 inserts a new Part 10A into the Companies Act 2014 to provide for a dedicated rescue process for small and micro companies, the “Small Companies Administrative Rescue Process”. While examinership is internationally recognised and successful in its own right, the associated costs mean it may be beyond the reach of small and micro enterprises. This new rescue process is designed to make rescue and restructuring more accessible and affordable to fundamentally viable companies experiencing temporary difficulties. These companies will now have access to an alternative framework which incorporates key elements of the existing examinership model in an administrative context, demonstrating Government’s commitment to providing a sustainable regulatory response to the challenges facing small and micro companies across the country. The Act came into effect on 7 December 2021. Read about the Eligibility criteria here ISME calls for responsible haulage protest ISME made a number of requests in response to the protest planned by the Irish Truckers and Haulage Association including, do not block access to or egress from any PCR testing centre, vaccination centre or hospital and appealing to truckers to bring someone along to spend at least €100 in the shops. This will replace a tiny amount of the lost trade they have lost. Read the full list of requests here
NEWS NEWS Irish business prioritising gender balance at board level The fourth report of the Balance for Better Business Review Group shows that Irish businesses have made important progress in achieving gender balance at Board level within the past year in Ireland. In 2021, the percentage of women on the Boards of ISEQ 20 companies rose to 31%, up from 18% meaning that the top publicly listed companies in Ireland are well on track to achieve the 33% goal by the end of 2023. Read more here Tánaiste & Minister Ryan Launch New Website to Help SMEs Decarbonise The Tánaiste, and Minister for Enterprise, Trade and Employment. Leo Varadkar T.D., and the Minister for the Environment, Climate and Communications, Eamon Ryan T.D., launched the Government’s new website to help businesses get started in taking climate action, climatetoolkit4business.gov.ie . The site allows SMEs to input some simple information and get an estimate of their carbon footprint and a personalised action plan to reduce it. Each tailored action plan will include straightforward, practical instructions and highlights the relevant help that is available from Government, through agencies such as Enterprise Ireland, the Local Enterprise Offices and the Sustainable Energy Authority of Ireland. Read more here The Latest bISME is available now Published in November, issue 15 of The bISME is packed full of articles and information including an interview with the Founder & CEO of Swoop, Andrea Reynolds; Neil McDonnell examines the budget & what it means to SMEs; also you can view articles on SCM and the GB landbridge; advice on dealing with cybercrime for remote working; workplace trends & the changes employers are facing and much more. Read here.
NEWS NEWS ISME release results of 9th COVID survey On the 14th December ISME released the results of our ninth flash survey on COVID-19. The survey found that 66% of respondents are availing of the TWSS or EWSS, meaning wage supports remain by far the largest liquidity solution availed of by business. 11% of those surveyed are availing of the COVID Restrictions Support Scheme, down from 17% in July 2021. The number of businesses who believe they can keep trading for more than 9 months has increased to 71%, up from 57% in November 2020. •
5% of businesses have availed of the SBCI working capital scheme, up 1% from July.
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66% of those surveyed have availed of the COVID-19 Wage Subsidy Scheme (TWSS or EWSS), up from 62% in July.
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15% of those surveyed are owed money from the State, or Semi-State agency, of that 15%, 38% are owed between €10 -50k.
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As things stand in the COVID-19 pandemic, 71% of business believe they can continue as a viable going concern for more then 9 months, up from 68% in July 2021.
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12% of businesses’ have outstanding debtors valued between €250k- €500k this is up from 7% in July 2021.
Read the full report here Take our Q4 Surveys How did your business find Q4? Have your voice heard by completing our Bank Watch Survey and our Trends Survey for the period. These surveys inform our lobbying on your behalf to Government so it is vital we capture as many experiences as possible. You can take the Trends Survey here You can take the Bank Watch Survey here ISME in the media ISME have been speaking to the media this month abut COVID-19 restrictions, working from home and BREXIT. You can take a look at some of the coverage here.
NEWS NEWS Protecting your business from Cybercrime We have created a Cybersecurity page on the website here where you get advice on managing Cybersecurity for your business. Re-watch our recent free online panel discussion about protecting your business from cybercriminals. Watch back here You can also watch a webinar from Spector IT here offering steps to follow to avoid a cyber attack. ISME Wellness Programme In these unprecedented times of a global pandemic, the health and wellbeing of employees is more important now than ever. As we support our members and their employees working remotely, we are committed to delivering the best, most appropriate, and most accessible solutions along with our partners, Laya healthcare and their health & wellbeing provider, Spectrum.Life with our ISME’s Wellness Programme. This 24/7 Mental Wellbeing Support Programme (EAP) offers unlimited access to employees and their families. For members with up to 30 employees the fixed cost is €500 + VAT and each subject employee is €9 for one year. To find out more go click here.
Visit our Managing Stress webpage ISME and the Health & Safety Authority (HSA) have developed a web page offering businesses support in managing stress in the workplace. Here you can find a Managing Stress at Work webinar, a series of videos and resources to help you and your employees.
NEWS NEWS Support Scheme for Energy Audits The SEAI has launched their Support Scheme for Energy Audits. The scheme offers a voucher of €2,000 for eligible SMEs to enable them to get a high-quality energy audit from a Registered Energy Auditor. You can read full details on the the SEAI website here.
Upcoming events from InterTradeIreland During January and February, InterTradeIrland will be running their Equity Advisory Clinics. These are one-to-one clinics aimed at companies seeking Equity Investment. Companies can receive advice on their fund-raising activities including a business plan review and investment pitch practice. See full details on events here.
Did you know that when you refer another business(es) to join ISME, you receive 10% discount when you renew your membership but make sure they mention you when they join! We want to continue to grow ISME so we can represent and support more Irish businesses.
Cost saving with ISME in 2022 As business costs continue to rise and income for so many at the moment has been challenged, we want you to take ADVANTAGE of your ISME Membership to reduce your costs and add value to your business through ISME’s ADVANTAGE Affinity programme. Members can save up to 50% on broadband, insurance, accounting & HR software, advertising, merchant services and much more. To access these offers, Members need to log into isme.ie via the Members Area.
NEWS
HR UPDATE
The National Minimum Wage will increase to €10.50 per hour from 1 January 2022 Minimum Wage The national minimum hourly rate will become €10.50 on 1 January 2022. Category of Employee Hourly Rate Aged 20 and over Under 18 Aged 18 Aged 19
€10.50 €7.35 €8.40 €9.45
Since 4 March 2019 trainee rates have been abolished. For the purposes of the National Minimum Wage your gross wage includes, for example, the basic salary and any shift premium, bonus or service charge. If employees receive board or lodgings, that is food or accommodation from the employer, the maximum amounts that can be included are: • for board only €0.94 per hour worked • for accommodation only €24.81 per week or €3.55 per day • from 1 January 2022. The following categories of employees are excluded from the National Minimum Wage: • employees who are close relatives of the employer, where the employer is a Sole Trader • a craft apprentice within the meaning of the Industrial Training Act, 1967, or the Labour of Services Act, 1987 In order to ensure that the increase in the minimum wage does not result in employers attracting a higher level of PRSI charge solely due to this increase, the employer PRSI threshold will increase from €398 currently to €410 from 1 January 2022. .
LEARNING & DEVELOPMENT February Courses Master Your Pitch Dates: 02-02-2022 & 03-02-2022 Book here Storytelling for Business Dates: 08-02-2022 to 09-02-2022 Book here ISME Skillnet now taking Expressions of Interest As we start 2022 we will be focusing on skills that will help your business succeed in the New Year. Topics include: •
Pricing
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Sales
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Negotiation
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Creating Videos on Mobile phones
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Marketing
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Promoting Your Business
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HR for the Year Ahead
If you are interested in taking any of these courses if you wish to arrange bespoke training for your team please don’t hesitate to reach out to Adam or Ruth.
Enquire here
ISME Skillnet welcome Ruth Connolly to the team Ruth is an experienced project management office administrator with over 20 years’ experience in the Financial Services sector. Prior to joining ISME she was a member of the award-winning Clear Customs programme team that was part of the “Getting Ireland Brexit Ready campaign” run in partnership with Skillnet Ireland. Ruth has held various roles at all levels and enjoys creating solid relationships with trainers, trainees, and business owners, and providing them with the best level of service to accommodate their business requirements .
BUSINESS ADVICE Here’s how businesses can get a head start in 2022 Margaret Hearty, CEO, InterTradeIreland As we enter a New Year, change has certainly become our new norm. The past 18 months saw firms trying to survive, pivot and improvise – and as businesses exit survival mode, it’s important to invest in new skills and technologies to aid recovery and growth says Margaret Hearty, Chief Executive Officer of InterTradeIreland. The importance of ‘online’ The pandemic accelerated the shift to online and during this time, online sales grew exponentially. For small business owners, Covid-19 highlighted the importance of being ‘online’ and with this trend set to continue, it’s worth thinking how you can expand and improve your user experience. InterTradeIreland’s E-Merge programme - started during the pandemic to help small businesses improve their online presence – has supported over 1000 companies. One firm that benefited was artisan food company Filligans, Co. Donegal who were able to bring their products online, giving access to their customers during Covid-19. Innovation has been challenged Covid-19 has meant that firms may now be removed from their colleagues/customer base and collaboration has been affected. Despite businesses struggling, investment in innovation has been resilient in 2021 and in some sectors has exceeded expectations. In 2022, the ‘green economy’ is forecasted to dominate the agenda and become a key driver of growth. Breakthroughs in science and technology will be needed to achieve these goals and crossborder collaboration will be crucial. Through our Synergy Programme, InterTradeIreland has committed to this by funding projects such as the Irish Bioeconomy Foundation to develop an allisland biomap.
Cross-border trade should be part of your growth strategy Cross-border trade is vital to economic recovery. In the last economic downturn, exporting proved a huge factor for driving growth and recovery. The latest figures from InterTradeIreland show that the value of trading to the opposite jurisdiction is at an all-time high, reaching €8.6billion. For firms who wish to increase their sales and grow their business it should be a logical step for the New Year. In addition to our Post-Brexit advice we can help firms gain the knowledge to win new business through our sales development programmes, such as the Trade Accelerator Voucher, Elevate and Acumen. Boost sales and funding Your business strategy should reflect how you can increase your sales and funding. The public procurement market on the island is currently valued at €13bn PA, with €9bn in Ireland. InterTradeIreland can help SMEs win public sector contracts through our Go-2-Tender programme and Supplier Engagement events can help you gain unique access to key public sector buyers. For early-stage companies, InterTradeIreland can assist with funding for growth opportunities. Our annual Seedcorn Investor Readiness Competition mirrors the real life investment process or for more established firms, we can offer advice and expertise through our Equity Advisory and Funding Advisory services. Looking forward 2022 will bring challenges but more importantly, new opportunities for firms across Ireland. For businesses who are ready to explore these, InterTradeIreland is here to help.