Sharon Keogan: Demands SME Test Protect Small Businesses

I rise not just in support of a motion but in defence of the lifeblood of our communities, our small and medium-sized enterprises. The SME test, as outlined in the Programme for Government, is a tool meant to protect these businesses from the unintended consequences of legislation, but tools are only as good as the hands they wield. Right now, I fear we are not wielding this one with the care and precision it demands. Let's be honest, SMEs are not just economic units, they are family-run shops, local trades, start-ups with dreams and cornerstone employees in towns and villages across Ireland. They are the people who support the local GAA teams, who know their customers by name and who stay open late because someone needs help. They are the heartbeat of Irish society. Yet, when we legislate, we often forget them. We forget that they do not have compliance departments or legal advisers. We forget that every new form, every new regulation, every new requirement is time away from serving customers, growing their business and creating jobs. A 2018 study showed that regulatory compliance disproportionately affected smaller firms. That is not just a statistic, it is a warning. And it is one we must heed. Because when we overburden SMEs, we do not just risk their survival, we risk their resilience of our entire economy. And let me be clear, the problem is not just the regulations themselves, it is the process. SMEs are often excluded from the conversation. Consultations are dominated by large corporations with lobbying power and legal teams. Meanwhile, the butchers in Banninslow or the florists in Finglas is left out in the cold. I spoke earlier today during the Order of Business using the example of the National Economic Dialogue, where only a small number of organisations present represent our private sector. And of those, it is disproportionately larger corporations who are represented. However, let me use another more in-depth example. Let us take Chambers Ireland, which represents a network of over 40 Chambers of Commerce across the nation, who in turn represent over 8,000 businesses. However, the CSO estimated that as of 2022, there are up to 390,000 enterprises in the country. This strongly indicates that well under 1% of enterprises are represented by Chambers of Commerce. And of those represented in their local chamber, you will frequently find a disproportionate number of the bigger, wealthier and well-established businesses. While not necessarily a bad thing, this means they are hardly likely to rock the boat either. That is why Senator Aubrey McCarty and I propose this amendment to ensure that the SME test is not just applied, but applied with the full scrutiny and insight of the Sianet. This House, with its diverse backgrounds and expertise, is uniquely positioned to champion the voice of the small business owner. We must also address the uncertainty that new regulations bring. When business owners do not know what is coming, they hesitate, they delay hiring, they postpone investment and that hesitation stifles innovation, growth and opportunity. So we need clarity, consistency and confidence. We need to ensure that regulations are scalable, that they reflect the realities of the different sectors and that they come with clear guidance and support. Let me say this, the one-size-fits-all approach must end. A policy that works for a multinational tech firm will not work for a rural mechanic. We must tailor our regulations for the diverse tapestry of Irish enterprise. Minister Peter Burke, recent directive to 19 agencies to reduce red tape to reduce red tape is a step in the right direction, but we must go further. We must embed the SME test into every stage of the legislative process, not as an afterthought, but as a core principle. We must empower the Sianet to play its full role in this, because when we involve this House, we bring in the voices of entrepreneurs, educators, community leaders and advocates. We bring in the lived experience of those who know what it means to run a business in Ireland today, and I do too, as many of our colleagues do around this chamber. Colleagues, this is not just about economics, it is about fairness, it is about respect, it is about ensuring that the people who take risks, who create jobs, who build communities, are not punished by the very system that should support them. There is no mention today of this motion of social enterprises. Social enterprises actually employ about 83,000 in this country. They are a very important part of our enterprise sector. Our colleague from Sinn Féin spoke earlier about the investment in R&D. We already have many, many companies in this country who are well established. I would call them grant-opreneurs. There are many companies in this country that are very good at getting grants, and I would call those companies grant-opreneurs. They've been getting them for years, and then they hit a stumbling block and they don't know how to get over them. Grants are given to create growth, and that's what grants should be used for. Those at the bottom can't get those grants, and very often it's the ones at the top that are creaming those grants, and there's no help for the lads at the bottom to get those grants. So there are many grant-opreneurs in this country that are using that system to to levy their business, and we should be looking after smaller businesses at this time. So I ask let us not allow the SME test to become another well-meaning policy that gathers dust. Let us make it a living, breathing commitment to our small businesses. Let us legislate with empathy, with insight and with courage. Let us give SMEs the voice they deserve and the future they earn. Thank you very much.