Irish Times Innovation Roadshow Talk
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A talk on the pr
Transcript of Irish Times Innovation Roadshow Talk
CURRENT ISSUES IN FUNDINGStephen Kinsella | KBS
CENTRAL POINTS:
1.Access to credit is not the only problem SMEs have.
2.Learning to thrive in a low-demand, low credit environment is key.
3.Policy should be redirected towards these initiatives. Chip shops just as good as nano-bio-watsits from an unemployment perspective.
CONTEXT: WE ARE NOT SPECIAL. GDP COLLAPSES POST CRISIS
Maria Woods and Siobhán O’Connell Ireland’s Financial Crisis: A Comparative Context Central Bank of Ireland Quarterly Bulletin 04 / October 12
Ireland and EU: Unemployment rates, 2002-2012
0
4
8
11
15
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
EU Ireland
0
10,000
20,000
30,000
40,000
2004
Q1
2005
Q1
2006
Q1
2007
Q1
2008
Q1
2009
Q1
2010
Q1
2011
Q1
2012
Q1
Final Domestic Demand, €m
LOGIC OF SME FOCUS
% CHANGE IN SME LENDING
SMES ARE STARVED OF CREDITMcIndoe-Calder and Quinn 2012 found that Irish firms were only second after Greece in experiencing loan rejections and fear of loan rejections leading to lower applications.
Implies role of confidence as well as communication in SME credit provision.
Big Q: How much money are we talking about?
Approximately €100 million per annum
WAGES BY FIRM SIZE AND NATIONALITY, €000
ManufacturingManufacturing ServicesServices
Micro
Small
Medium
Large
Irish Foreign Irish Foreign
35 42 30 65
36 51 32 62
41 52 31 56
48 63 36 41
Source: Census of Industrial Production, (2009)
WAGES BY FIRM SIZE AND NATIONALITY, €000
ManufacturingManufacturing ServicesServices
Micro
Small
Medium
Large
Irish Foreign Irish Foreign
35 42 30 65
36 51 32 62
41 52 31 56
48 63 36 41
Source: Census of Industrial Production, (2009)
AN OLD SCHOOL IDEA
