Current Issues Facing SMEs in Ireland and Policies for the Sectors Development - Research Proposal Example

Current Issues Facing SME’s in Ireland and Policies for the Sector’s Development The paper offers the information regarding the contemporary issues facing SME’s in Ireland. It also considers the policy prospects with regard to support for the development of this sector of the economy. Moreover, another critical concern of this proposal is to highlight the current effect of SME’s on performance and economic affluence within the Irish dispensation. SME’s are a key section of the economy as they contribute, to a consummate percentage, sustainable and appreciable development. With regard to the globalization prospects, innovativeness and rapidity of SME’s, this proposal highlights these issues and offers space for development of this sector with regard to the current concerns surrounding SME’s in the Ireland dispensation. Introduction Ireland has a populace of roughly four million inhabitants with two million of them in employment. A consummate part of them works for the government, state and public sector agencies while the rest operate within the enterprise sector. With regard to the size of this sector, it is succinctly evident that success of the SME sector in the Irish dispensation is a critical determinant of the country’s economy. Moreover, the economy of Ireland is in an epoch of transition from domestic or home-based demand to the external demand, which characterizes its economic strength. SME’s, therefore, have overtaken construction in based on the rate of growth. Notably, the Irish SME market is now global due to the effect of globalization in the Irish enterprise sector. Thus, regarding the current issues as highlighted in this proposal, the future of SME’s in the Irish economic sector is much promising. Problem Statement In this study, addressing of current issues facing SME’s in Ireland and policies for the sector’s development is the chief focus. More so, address of these issues is a consummate part of this research, since, they and translate to the future of the sector. It additionally offers a foundation for worthwhile business prospects that would take economic advantages in Ireland’s SME sector and solve the difficulties associated it. More specifically, the problems linked with this explanation include actions necessary for leveraged development in Ireland’s SME sector and various policies that would inculcate a drive towards sectoral development. In addition, contemporary matters in connection to this sector are an area of concern in this proposal discussion. Research Justification The distinct underlying concept in this discussion is prior to the various given studies and investigations of past researchers concerning the matters facing SME’s in Ireland in the contemporary era. It also concerns the possible policies and undertakings to counter and deal with those specific issues and a summary of benefits that prospective entities can derive from the enterprises. It also highlights research arguments from previous researchers in a bid to justify and evaluate the value of SME’s in the Ireland economy. Thus, there is an elevated interest to picture the development of these issues, their underlying causes and a detailed discussion on their part with their respective policy suggestions. Particularly, this interest triggered the discussion of how the arising issues within the Ireland SME sector undermine its status. A further stipulation of accommodative policies by the government to handle these issues accordingly follows. Since Ireland SME’s are the core of research topics, this study shall concentrate on how to support them to the eventual realization of development. It also presents a conceptual model for SME business success that stems from proper conceptualization of these issues. Research Objectives The core objectives of this study consist of four major intertwined goals. The foremost objective is to define the Irish labor division and the specifics related to the SME sector. This offers the reader with a fundamental comprehension of the trends in the Irish SME domain. Secondly, an analysis of the associated economic benefits and the trends in contemporary issues follows. Moreover, a succinct data analysis of this sector follows to give a glimpse of the sectoral division in the SME sector. This section contains workforces’ information and the respective labor issues that illuminates on the basic information on the Ireland SMEs. This precedes a detailed discussion of the matters facing this sector, which is the principal concern in this study. Eventually, an explanation of the Irish government’s responses to the issues summarizes the study. Specific Research Queries For the alignment of the study to source proper information, four major questions require satisfaction. These questions aid in generating a gradual development of the main theme of the study, the current issues in the Irish SME sector. These would develop into a viable business idea or venture that utilizes the powers and importance of SMEs in the domestic and foreign markets. 1. What is the characteristic structure, size and organization of SMEs in Ireland and how important are they to its economy? 2. How are the workforces and labor distributed in this sector, what are the specific labor costs involved and how do they affect SMEs in Ireland? 3. What are the major contemporary issues facing the SME affiliations and their constituent bodies in Ireland? 4. How does the government respond to these characteristic matters and how can prospective and visionary entities use the policies to inculcate profitable business ideas and profits in this sector? The above-formulated questions will aid in generating a reasonable scope of research that dictates the content highlighted herewith, and acts as a guide to concentrate on the pertinent issues only. Thus, the questions build on the principal concern of the study, which surrounds the concern of SMEs in Ireland, the structure, size and importance of the enterprises and eventually, the policies and available prospects within the legislation that counter the constraints for better SME functionality. Scope and Limitations This study recognizes its principal concerns with reference to the research questions. The study also appreciates the various limitations that are associated with the research flaws. Specifically, this worthwhile study proposal concentrates its scope majorly in describing the Irish SME sector and the current issues that they brave. Moreover, it encompasses some of the concepts surrounding the Irish SME domain to the eventual policies that formulated to achieve success. The study accordingly addresses all theories and concepts in a comprehensible way. However, as part of the research constraints, the study shall not deeply address the monetary statuses of the SMEs. In addition, it may not delve into criticisms of previous works, but will utilize them for building on the study. Literature Review Given the Ireland workforce, those that work in SMEs constitute approximately 700,000 relative to those who operate in government agencies among others (OECD, 2000). Given the immense size of the SME sector, it is undoubted that the economy of Ireland is vitally dependent on this sector (OECD, 2000). Thus, due to this pertinence, policy creators ought to have tacit information regarding the current issues, features and constraints that are evident in this sector (Ciarán Mac an Bhaird, 2010). In contemporary economic times, the SME businesses in Ireland have recording immense developments such as introduction of new enterprises, in an aim to expand this sector. This extends to more employments and a better economy. Irish SMEs highlight various matters that either implicates on their statuses and operations. Firstly, the hiking cost of running enterprises in Ireland. Submission of charges to local authorities for energy and waste disposal affect the SMEs (Lenihan, 2010). Financial accessibility is another issue that affects the inculcation of initiatives that may aid the enterprises to grow, such as curtailed venture capital. Additionally, the regulatory burden in terms of compliance statutes may not be in complete favor of the SMEs. This includes VAT and tax systems that are a burden to some enterprises (OECD, 2000). More so, the government affiliation of Ireland has inculcated an array of initiatives to aid the SME sector to prosper. For instance, it inculcates agencies such as FAS and Enterprise Island that supports SMEs, such as introduction to industrial networks and direct grants (Paci & Eradyn, 2003). Moreover, another prospect of the government is to truncate the regulatory constraints through processes such as RIA, allows procedural consideration of benefits and eventual deduction of administrative hardships upon the SME (Ciarán Mac an Bhaird, 2010). Therefore, each trending quandary has a matching legislative control to harmonize and create a healthy environment for SMEs in Ireland to prosper. Methodology In this study, the applied mode of acquisition of the facts and information regarding the topic is achieved through the correct use and analyses of the information gathered thhrough comparative studies. Moreover, reference to previous source regarding related studies has been of immense aid in compilation of this study. It is, thus, a worthwhile chance for the study to apply the sources cited within and referenced in the bibliography, to highlight the current issues facing SME in Ireland. Additionally, since the acknowledged sources explicate on the same issues regarding SMEs, it is worthwhile that they have been of immense aid. This comparison and relation of studies aids in unraveling a tacit comprehension on the concepts and facts of the SME operations, structures, importance and contemporary matters linked with them. Conclusively, there is a summary of the studies that are cited accordingly, to appreciate the entities that contribute towards a comprehensive study that it is. References Ciarán Mac an Bhaird. (2010). Contributions to Management Science: Resourcing Small and Medium Enterprises: A Financial Growth Life Cycle Approach. Dublin: Springer. Lenihan, H. (2010). Smes in a Globalised World: Survival and Growth Strategies on Europes Geographical Periphery. Cheltenham: Edward Elgar Publishing. Paci, R. & Eradyn, A. (2003). Regional Economic Growth, Smes and the Wider Europe. Surrey: Ashgate Publishers. OECD. (2000). Globalisation and Small and Medium Enterprises (SMEs). France, OECD Publishers. Read More