Less than €30,000 has been paid out of total budget of €5m to help small businesses increase online presence after only 13 applied

As published on: https://www.independent.ie/business/small-business/only-six-firms-have-been-given-funding-under-smes-digital-grant/a1061934565.html

Only six businesses have received funding from a government scheme to help SMEs to increase their digital presence, with less than 1pc of the available €5m budget paid out so far.

The Grow Digital Voucher was launched last September, offering up to €5,000 to small businesses in all sectors that have up to 50 employees.

The idea was to help them improve efficiency by using digital tools. Eligible expenditure includes software for e-commerce, invoicing and cyber security.

However the minister of state at the Department of Enterprise, Alan Dillon, has revealed that there have been only 13 applications so far, and only six of them were approved. This means only €28,296.50 has been paid out.

In answer to a Dáil question from Fianna Gael’s Emer Currie, Mr Dillon insisted there was a “strong pipeline for the increased uptake” of the voucher.

Digital Business Ireland (DBI), the national association for the digital and e-commerce sectors, criticised the poor start to the government scheme, however. It said that at a time when supporting digital transition is a key policy priority, there is something “gravely wrong” with such a slow uptake.

DP Fitzgerald, a spokesman for the agency, said: “DBI believes more must be done to promote the Grow Digital Voucher scheme, while the €5,000 value is too low to meaningfully contribute to the costs which most SMEs are facing for digital transition.

“DBI is finalising our pre-budget submission which proposes a tiered system of grant support for digital transition and adoption of AI by Irish SMEs, with grants of varying levels appropriate to enterprises of different sizes and at various stages of growth.”

The Department of Enterprise has also said it plans to launch an appeals process to allow businesses in the retail, hospitality and beauty sectors to become eligible for the second Increased Cost of Doing Business and the Power Up grants.

The Increased Cost of Business scheme was introduced in March 2024 and the Power Up grant was introduced in October 2024, with the intention of helping firms to get through a period of high inflation and, particularly, high energy costs.

Both schemes are now closed, and about €400m was paid out to companies last year through the schemes. However, some businesses in the hospitality and retail sectors have claimed they misclassified themselves during the registration process, and therefore didn’t get a payment.

“It is intended to open the appeals process as soon as possible and local authorities will contact the eligible businesses”

“It is now intended to introduce an appeals process to allow businesses in the retail, hospitality and beauty sectors who misclassified themselves to register for the second ICOB grant and Power Up grant,” Peter Burke, the Enterprise Minister, has told the Dáil.

He stressed that this did not mean the schemes were being reopened. The appeals process would start following discussions with local councils, who administered the two schemes on behalf of the Government.

Mr Burke added: “The Department will now engage with the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation and with the local authorities to agree on the details of the reclassification process.

“Subject to agreement with the local authorities, it is intended to open the appeals process as soon as possible and local authorities will contact the eligible businesses and inform them of the necessary steps to apply.”