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Dáil

Written answer

Departmental Reviews

354. Deputy Paul McAuliffe asked the Minister for Rural and Community Development and the Gaeltacht if there are plans to commission an independent assessment to examine whether current social enterprise funding programmes are structured appropriately, given that most recipients operate in areas of market failure rather than viable commercial markets; and if he will make a statement on the matter. [50298/26]

Comment on this
Jerry Buttimer Minister of State at the Department of Rural and Community Development and the Gaeltacht Fine Gael

Trading for Impact, the National Social Enterprise Policy 2024-2027 was designed to cultivate and sustain a strong and impactful social enterprise sector in Ireland that enriches the social, environmental, and economic wellbeing of our communities. It was developed following extensive consultation with the sector. This included a series of bi-lateral meetings with key stakeholders, a series of regional stakeholder engagement events, and a public consultation. Submissions made as part of this process are available on my department's website. Following the consultation process, a number of key priorities were identified, and they form the basis of the 57 Trading for Impact policy actions, under five key objectives.

Trading for Impact outlines a renewed commitment to help cultivate strong and impactful social enterprises through new and existing supports. Many of the actions contained in Trading for Impact seek to support social enterprises to increase their traded income and improve their resilience, thereby reducing their reliance on grant funding.

A Trading for Impact Stakeholder Engagement Group (SEG) has been set up to co-ordinate input into the delivery of Trading for Impact on a cross sectoral basis and working groups have been established to help delivery of the policy. The SEG and its working groups draw their membership from a broad base, reflecting the wide impact and areas of operation that social enterprises may operate in.

In April of this year, I launched a Dormant Accounts Fund (DAF) Sustaining Social Enterprise Scheme which?supports established social enterprises to grow their traded income and become more financially self-sufficient over 23 months, in line with feedback received from the policy's SEG. Applications are currently at assessment stage. This funding will support projects such as the recruitment of key staff to drive income growth and sustainability and the development of a shared service resource to enabling existing staff to focus on increased income generation. An evaluation of the impact of this funding has been included in the delivery plan and will be considered in the context of future funding priorities.

My department also provides supports to social enterprises through ongoing programmes such as SICAP, where social enterprises providing services to one or more of the named SICAP target groups may avail of grants up to a maximum of €2,500 per annum. This is with a view to supporting social enterprises to establish and expand, employing those who are most marginalised, and so they can provide local services where other enterprises may not be able to, such as in areas of deficient demand.

The CSP programme currently supports 453 services nationally on an ongoing basis via 434 community organisations to provide local social, economic, and environmental services through a social enterprise model, with a budget of €59.4m in 2026. A recent call for new organisations to join the CSP programme closed on May 8th last. All applications received are currently going through an appraisal process, with results expected to be issued before the end of July.

My Department's Our Rural Future policy was developed following wide consultation, and also recognises the role of social enterprises in providing appropriate spaces and services to rural areas, and influences funding across a range of schemes within my Department’s Rural Development Investment Programme, for example LEADER and the Town and Village Renewal Scheme which may support social enterprises.

Department of Social Protection supports, including through the Job Initiative, TUS, Community Employment Scheme or Rural Social Scheme posts also play an important part in supporting the sector, and this is acknowledged under the policy.

As the Deputy will appreciate, supports for social enterprises come from a wide range of departments and agencies and are influenced by the objectives of those bodies and are generally not directed solely at social enterprises. Trading for Impact was developed in partnership with sectoral stakeholders and the commissioning of an independent assessment to examine the structure of social enterprise funding programmes was not identified as a priority during that process. Delivery of Trading for Impact is now underway and my officials will consider this matter further, in consultation with stakeholders, in the development of future policy in this area.

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