25,000 jobs set to be created by SMEs in 2018

Sue O’Neill, chair of the Small Firms Association (SFA) confirmed that Ireland’s 245,000 small businesses are on track to create 25,000 new jobs in 2018, as the nation bids to reinvigorate the towns and rural villages across the country and boost the national economy.

Ms O’Neill published her end-of-year statement as 2017 drew to a close, admitting that the last 12 months had been “challenging” but that “nearly two-thirds of small firms feel that the business environment [in Ireland] is improving”.

“Domestic economic growth in 2018 is likely to be close to 4% and our members see this as the biggest opportunity for their business in the coming year,” said O’Neill.

“71% of SFA member companies plan to take on additional staff and we estimate that together small businesses will create 25,000 jobs in 2018. These jobs will be in a wide variety of sectors, giving a boost to villages, towns and cities across Ireland.

“However, concrete steps are needed from Government in order for this job creation to be realised. Creating a strategy for growth for small businesses with special focus on tax competitiveness and the cost of doing business especially in light of [the UK’s departure from the European Union] should be the top priority in the coming year.

“By creating a real pro-growth tax system and making sure that work always pays, employees, small businesses and society as a whole will be better off.”

The SFA believes a strategy for economic growth must feature measures to improve Ireland’s tax competitiveness, including:

• Complete equalisation of the Earned Income Tax for self-employed with the PAYE tax credit

• Raise the entry point of the marginal income tax rate as well as the reduction of the marginal rate to below OECD average

• Reduce Capital Gains Tax (CGT) rate from 33% to 20% - Ireland’s CGT rate is currently the fourth highest in the OECD

• Raise the €1m Entrepreneurial Rate of CGT to €15m

“The SFA has a vision of Ireland as the most vibrant small business community in the world, supporting entrepreneurship, valuing small business and rewarding risk takers,” added O’Neill.

Date published 4 Jan 2018 | Last updated 5 Jan 2018