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To date, some 430 micro-enterprises have benefited from Microfinance Ireland loans, with ambitious plans set for 2015. Photo: iStock

Microfinance Ireland is aiming to support a further 1,000 jobs in 2015 through providing finance to micro-enterprises who have been unable to secure funding elsewhere.

Since its inception in October 2012, more than 1,000 jobs have already been supported by Microfinance Ireland through its lending to businesses, which have 10 employees or less and a turnover of less than €2m per annum.

To date, some 430 micro-enterprises have benefited from Microfinance Ireland loans. Businesses from any sector can qualify for Microfinance Ireland funding as long as they have less than 10 employees and a turnover of less than €2 million per annum.

After its second full year of trading, Microfinance Ireland has doubled its previously approved lending and their portfolio of approved loans now stands at over €6m. Over 75% of lending by Microfinance Ireland has been to businesses located outside Dublin and the average loan size is around €15,000.

Minister for Business and Employment Ged Nash TD said that, “Government initiatives like Microfinance Ireland are now bearing real fruit, impacting on real jobs and providing real hope for business people and their families who are entrepreneurs. These people create jobs – not just take them up.

“I am particularly pleased to see that 75% of the micro-enterprises surveyed by Microfinance Ireland say they plan to hire new staff this year. Small and medium size businesses really are the engine of our economy and this level of confidence among Microfinance Ireland’s clients bodes well for our targets to return to full employment by 2018.”

“I believe the strong level of engagement between Microfinance Ireland and the Local Enterprise Offices (LEO), which are a first stop shop for small businesses is working very well. This is a joined up approach and frankly makes a lot of sense as microenterprises can go to their LEO for advice, mentoring and to access supports available from Government, but also can use the LEO as a link to getting small loans from Microfinance Ireland to grow their businesses,” he concluded.

AMBITIOUS TARGET

Speaking about Microfinance Ireland’s success to date, Michael Johnson, Chief Executive, said “We plan to expand during 2015 and have an ambition to support a further 1000 jobs, provided the economy continues to grow at the predicted rate of approximately 3%. The cost per job ratio and social impact represent an excellent return both on a social and economic basis. Our ambition is to double our loan portfolio and approve lending of a further €6m in 2015.”

The Government provided funding of €10m as part of the Action Plan for Jobs to enable Microfinance Ireland provide loan finance to micro-enterprises who have not been able to access loans elsewhere.

During 2015, Microfinance Ireland will be working closely with the Local Enterprise Offices to promote the availability of funding to small businesses and to maximise the impact and reach of the organisation.

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