Donegal Local Enterprise Development Plan 2021-2024
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Table of Contents 6 Executive Summary 12 1. Context 12 1.1. Overview / 4-year outlook for enterprise development in Donegal 12 1.1.1. Climate Sustainability 12 1.1.2. Digitalisation 12 1.1.3. BREXIT 14 1.1.4. Policy Context 18 1.1.5. Local Enterprise Plan 20 1.1.6. SWOT Analysis 24 1.2. Review of 2017-2020 26 1.2. Review of 2017-2020 30 2. Vision/Mission and Overarching Objectives 30 2.1. LEO Vision 31 2.2. Mission Statement 32 2.3. Overarching Objectives 32 2.3.1. Business Information & Advisory Services 34 2.3.2. Enterprise Support Services 35 2.3.3. Entrepreneurship Support Services 35 2.3.4. Local Economic Development Services 38 3. Strategic Priorities 38 3.1. Strategic Priorities for LEO Donegal 2021-2024 38 3.1.1. Entrepreneurship 40 3.1.2. Competitiveness and Digitalisation 41 3.1.3. Green/Blue/Sustainability 42 3.1.4. Innovation 43 3.1.5. Exporting/Internationalisation 44 3.1.6. Networks and Clustering 44 3.2. Capacity and Capability Development 44 3.2.1. REDF Projects 45 3.2.2. Management Development Capability 46 3.3. National LEO Programmes 46 3.3.1. Local Enterprise Week 46 3.3.2. Student Enterprise Programme and Awards 47 3.3.3. National Enterprise Awards 47 3.3.5. Food Academy 47 3.3.7. Enterprise Europe Network 47 3.3.4. Showcase 47 3.3.6. National Ploughing Championships 47 3.3.8. IBYE 50 4. Associated Actions and Activities 50 4.1. Protocols 51 4.1.1. Department of Social Protection 51 4.1.3. FÁilte Ireland 51 4.1.5. Skillnets 51 4.1.2. Credit Review Office 51 4.1.4. Microfinance Ireland 51 4.1.6. Education and Training Boards (ETBs) 52 4.1.7. Revenue 52 4.1.9. Leader 52 4.1.8. National Association of Community Enterprise Centres (NACEC) 52 4.1.10. ÚdarÁs na Gaeltachta 53 4.1.11. Other Initiatives 56 5. Risks and New Initiatives 60 6. Delivering the Strategy 60 6.1. Funding 60 6.2. Training 61 6.3. Communications 61 6.4. Customer Care 64 APPENDIX 1: LEO DONEGAL - Performance Metrics
EXECUTIVE SUMMARY This local enterprise development plan for the Local Enterprise This plan therefore takes place within this evolving context whilst The plan sets out the LEO’s vision and mission and the strategic for the four-year period. It also identifies areas/sectors in Office Donegal (LEO Donegal) sets out the vision, strategic taking cognisance of COVID, Brexit, and operational objectives which it believes there are new Climate Change and Digitalisation which it hopes to achieve during opportunities such as Food/ and operational objectives and actions proposed by the Local challenges which are now present the life of the plan. The plan Seafood, Creative Industries, ICT/ Enterprise Office in Donegal County Council for the four-year for Donegal and its business community and many of the identifies Entrepreneurship, Competitiveness & Digitalisation, FInTech, FDI/Local spin-outs, Tourism, Patient Centric Health period and in particular details the actions and activities actions proposed have a focus Green& Sustainability, Innovation, (Medical Devise/Digital Health) on assisting businesses and the Exporting& Internationalisation Social enterprise and the Circular to be delivered on in 2021. It is anticipated that the plan county address these challenges and Clusters & Networks as economy which encompasses and its activities will be reviewed and updated on an annual and possible opportunities. its key strategic priority areas the Blue and Green economies. basis during the period of the plan - however many of the New Opportunity Sectors actions undertaken will also pass over into 2022 given the current strategy on Enterprise Development in the county. Previous Enterprise Plan Milestones Food Creative ICT/FInTech FDI/Local Tourism Patient Circular spin-outs Centric Economy Health The plan also recognises some key in the county to deliver on its This role will fit within the Service challenges such as the relatively recommendations, in particular Level Agreement between Enterprise low level of new business start- the key role that the private sector Ireland and the Local Authority 153 456 473 9500 350 €2.7m ups eligible for grant aid and the need for increased start-up activity and third level education need to play. LEO Donegal will work closely which sets out clearly the key role envisioned by Government for the projects were businesses Trading Online Donegal LEO programmes direct in these sectors i.e. added-value with all stakeholders in seeking to Local Enterprise Office as part of approved were approved Voucher participants and workshops supports manufacturing and services with the drive enterprise creation in these the Local Authority and aligned grant aid mentoring approved overall approved potential to export. In this context it sectors as well as supporting new with policies and actions of the proposes that a greater focus of all and existing business that can Department of Enterprise, Trade local stakeholders should be on the create employment throughout the and Employment and Enterprise identified strengths of the county county. In this regard the plan puts Ireland. It fulfills the role in the Overall, the targets set in the applications for support increased challenges. However, to remedy and the development of clusters significant emphasis on the need for Service Level Agreement for the previous plan in relation to the by tenfold with over €2.7M being the situation the Local Enterprise within specific sectors where higher levels of efficiency, innovation, LEO to play in the broader economic number of projects to be grant approved by way of direct supports. Office has undertaken an extensive appropriate, such as Engineering, internationalisation and exporting development of the county and aided, mentoring approvals, Enterprise Development Strategy Food and Nutrition, FinTech, as well as digitalisation and the integration of enterprise While most of the targets and Patient Centric Health Services, sustainability, but also recognises development within the broader local programmes and workshops exercise, engaging multiple outputs set for the 2017-2020 the emerging Green and Blue that for most small and micro authority economic development (both in number and participants), stakeholders across the Donegal plan were achieved during the economies, the Creative Industries enterprises there is a significant role. Through the synergies which and the number of schools and landscape, analyzing the status period limited progress was and Tourism. The development of development curve to be achieved this model can facilitate the students on the Student Enterprise of enterprise in the county made in effecting change in the clusters – even at an initial stage – is before some of these capabilities Local Enterprise Office Donegal Programme were all achieved or and seeking the support of the enterprise ecosystem in the seen as fundamental to developing and objectives can be achieved. through its enterprise promotion, exceeded. During the previous Government agencies that support new levels of business start-ups support and development role and county and thus there was limited Finally, the adoption of the new plan 153 projects were approved all endeavors in the county. The and to even attract business to working closely with the Economic improvement on the level and type Enterprise Development Strategy grant aid, 456 businesses resulting strategy and plan, which the county in the next years. Development Unit in Donegal County of business start-ups during the and the resultant plan and structure were approved mentoring, 473 will seek to place the county in Council has the potential to play an period. The unexpected COVID The key areas for enterprise will encompass all the activities businesses were approved a a strong position over the next important role in the direction and pandemic that occurred in early opportunity are identified in the plan outlined above and within the detail Trading Online Voucher and there decade, sustains the gains of the delivery of enterprise and economic 2020 and that has continued and are in line with those identified of this plan. The intention is that the were some 9,500 participants past years and places them into development in the county and to into 2021 is likely to present in the Strategic Enterprise Plan for LEO in Donegal will be the secretariat on over 350 programmes and a national leadership position in alter the complexion of enterprise challenges for the next few years Donegal. LEO Donegal recognises of this core strategic activity over workshops. In 2020 because of the distinct focus areas using all the within Donegal in the next decade. and the Local Enterprise Office the challenges which this strategic the next decade supporting the additional and amended supports stakeholders in the county as will need to be remain flexible in plan has identified and the clear private and public sector in achieving to assist businesses overcome collaborators in this exercise. its supports and responses to need for greater collaboration the goals and targets of the plan. COVID challenges, the volume of among all enterprise stakeholders assist local firms address these 6 7
1. CONTEXT 1.1. Overview / 4-year outlook for enterprise development in Donegal As a county, Donegal is spatially unique, having the longest coastline in the country and sharing 93% of its land boundary with Northern Ireland and only 7% with the Republic of Ireland. Donegal is the fourth largest and fifth most rurally dispersed county on the Island of Ireland. The County has a weak urban structure with approximately three quarters of its population living in rural areas meaning that its citizens generally have to travel further to avail of essential services such as health, education, employment and retail. Donegal operates under a unique Businesses in Donegal are mainly Monthly business registrations set of circumstances – it operates small, with 92% employing less average 45/month (source: Vision within a functional economic area than 10 employees, and the Net) and in the main these reflect that straddles an international likely impact of Brexit on these the current dominant sectors border and has suffered from enterprises will vary from business in the county – constriction, underinvestment and is peripheral to business. In 2018, there were wholesale/retail, food and from the main economic activity 8,135 active enterprises in County tourism services with only small on the island by having no Donegal, growing by 6.7% over number in the added-value motorway and non-existent rail the 2017-2018 period, compared manufacturing sector. The level connection to the capital or any to a growth rate of 8.2% in the of new business registrations as main city. The county suffers from State. In 2018, 29% of active an indicator of entrepreneurial high levels of deprivation and is enterprises were in Construction, strength and activity is at the reliant on sectors that are exposed 20% in Wholesale & Retail Trade lower level compared to other to Brexit challenges (particularly and 12% in Accommodation similar sized counties and is in the fisheries sector). The county and Food Service. There were the bottom 20% of all counties. has the lowest levels of GVA and 30,207 employees in all active This is something which the disposable income per head of enterprises in County Donegal new Enterprise Development population compared to all other of which the top 3 employers Strategy seeks to address. counties in the country. Within were Wholesale and Retail Trade national policies and funding (25.9%), Accommodation and Food programmes this natural economic Services (21.4%) and functional area needs to be taken Manufacturing (20.3%). account of as Donegal shares few, if any, similarities or challenges with its closest neighbouring counties in the Republic of Ireland. 10 11
1. CONTEXT 1.1. Overview / 4-year outlook for enterprise development in Donegal 1.1.1. CLIMATE SUSTAINABILITY 1.1.2. DIGITALISATION 1.1.3. BREXIT The emergence worldwide of a Digitalisation has become an Given Donegal’s geographic On the other hand, the Annual renewed focus on climate change integral part of all enterprises in proximity to Northern Ireland and Employment Survey indicates that and sustainability beyond mere the past two years, accelerated proximity to exporting ports there, the average percentage of sales words and gestures is driving a by the Covid-19 pandemic a strong tradition has evolved per company into the UK markets new dimension of understanding and driven by a need to see over many years for the focus of is approximately 10%. This enterprise and industry which all businesses embrace the any exporting activity, particularly highlights two key issues – many can be an important aspect of capabilities offered alongside the of manufactured goods, to have small firms are thus unlikely to Donegal’s future. The Blue and challenges and risks. For rural as their primary markets both be too concerned with the export Green economic charges are only communities, this presents a real Northern Ireland and Great Britain. implications of Brexit because of the beginning and the importance opportunity to enable a new type the relatively low level of exporting Businesses that trade with the UK of rural communities and the of working but also to attract being done by them and that will be impacted by the new trading integration of Green thinking new talent to the communities. overall, there is a real challenge rules and processes and some into all facets of industry – in getting Donegal firms to raise businesses will be impacted by including Tourism, Engineering, their export ambition. Irrespective supply chains shocks; for example, Manufacturing and Life sciences of this baseline position, the those that source products, will change the form and structure export challenge remains a real component parts or services from of these sectors over the next and tangible issue for Donegal. the UK. The Annual Survey of Local years. Donegal LEO is aware of Enterprise Office clients in Donegal the potentialities of coordinating highlights that 75% of its client concerned efforts in these areas base is currently selling products to support new industries and or services into Northern Ireland leadership positions in them given and Great Britain. This high level the natural assets in Donegal. of engagement with UK markets, plus its key role as a supplier of raw materials and Donegal’s geographic location emphasises the need for firms in Donegal to assess exposure critically and realistically to Great Britain’s markets and respond accordingly. 12 13
1.1.4. POLICY CONTEXT While this plan sets out the priorities of Local Enterprise Office The National Development Plan 2018 -2027 sets out the investment priorities that will underpin National Objective 5 – A Strong Economy supported by Enterprise, Innovation and Skills it states that Donegal for the next four years the content, aims and objectives the successful implementation of the National this element of the Plan will be achieved by: Planning Framework. Within the section under of the county plan are all set within the current context of Government policies as set out in key Government and international strategic documents such as Project Ireland 2040, Future Jobs Ireland, Enterprise 2025 Renewed and the most recent OECD report on Ireland. 01. 02. 03. 04. Project Ireland 2040 - Investing Project Ireland 2040 seeks to Supporting Through collaborative Realising a significant By attracting in Business, Enterprise and achieve ten strategic outcomes, entrepreneurialism and actions at regional uplift in the performance further investment Innovation 2018 -2040, is the building around the overarching building competitive and local level. of enterprises in to the regions. government’s overarching policy themes of wellbeing, equality, and clusters in strategic terms of innovation, initiative to make Ireland a better opportunity. These ten shared sectors and activities. export potential country for all of us - a country priorities are aimed at ensuring and productivity. that reflects the best of who we a consistent approach between are and what we aspire to be. planning objectives under the National Planning Framework and investment commitments under the National Development Plan. Two of these ten strategic Enterprise 2025 Renewed, is Ireland’s national enterprises and contribute to strong economic outcomes are particularly relevant enterprise strategy with the stated vision of performance over the longer term through a to the Local Enterprise Offices making Ireland “the best place to succeed in number of key policy priorities. These include: – A Strong Economy, Supported business” and aims to embed resilience in Irish by Enterprise, Innovation and Skills and Strengthening Rural Economies and Communities. 01. 02. 03. 04. 05. An increased Building on our Placing a spotlight Realising the Raising Ireland’s emphasis on existing strengths on innovation full potential of visibility developing Irish and seeking out (including our regions – internationally, owned enterprises new opportunities disruptive developing places protecting – enhancing through technologies) that are attractive Ireland’s productivity and collaboration and and talent for business reputation, delivering quality clustering within development, investment and and providing jobs – and helping our distinctive so that more for people to live opportunities for companies to foreign and enterprises are and work; and our enterprises navigate Brexit; Irish owned developing new supported by the enterprise mix; products, services Global Footprint and solutions, 2025 initiative. and are more competitive internationally; 14 15
Figure 1: Enterprise 2025 Renewed Key Policy Priorities 01. 02. 03. 04. 05. An increased Building on our Placing a spotlight Realising the Raising Ireland’s emphasis on existing strengths on innovation full potential visibility developing Irish and seeking out (including of our regions- internationally, owned enterprises new opportunities disruptive developing places protecting - enhancing through technologies) that are attractive Ireland’s productivity and collaboration and and talent for business reputation, delivering quality clustering within development, investment and and providing jobs - and helping our distinctive so that more for people to opportunities for companies to foreign and enterprises are live and work our enterprises navigate Brexit Irish owned developing new supported by the The OECD Roadmap & Review The report highlights large spatial variations in conditions enterprise mix products, services Global Footprints of SME and Entrepreneurship for SME and entrepreneurship activity within Ireland. In and solutions, 2025 initiative Policies in Ireland was published relation the Local Enterprise Offices it states: and are more on 31st October 2019 following competitive an extensive review of SME and internationally. Entrepreneurship Policies in “The LEOs play an important function in providing Ireland, and examined how SMEs and entrepreneurship can be tailored support for SMEs and entrepreneurship strengthened across the economy. in their areas in collaboration with other bodies It covered the characteristics working locally and regionally. However there is and performance of SMEs and entrepreneurship, the business potential to enhance local level policies to build environment, the framework for local networks of enterprises working on common To ensure Ireland’s economy is well positioned to adapt and prosper in the future, the policy formulation and delivery, skills and innovation projects, particularly in national programmes for SMEs Government Launched in 2019, Future Jobs Ireland - Preparing Now for Tomorrow’s and entrepreneurs, the role of local industry clusters. Approaches are also Economy, which seeks to position Ireland’s economy so that it can adapt and prosper local bodies and interventions needed to connect SMEs and entrepreneurs in into the future. It is focused on embracing innovation and technological change, in tailoring policy to spatial remote regions with broader entrepreneurship differences, the productivity improving productivity, increasing labour force participation, enhancing skills and performance of SMEs, and the ecosystems in urban centres and larger cities.” developing talent and transitioning to a low carbon economy. Future Jobs Ireland seeks design and delivery of business to drive our development as a resilient, innovative, and globally connected economy, development services. capable of coping with technological and other transformational changes ahead. The report identified a number of The Regional Enterprise Plans are regional stakeholders – the Local challenges for policy in Ireland. aimed at assisting in the delivery Enterprise Offices being critical These included increasing of the aims and objectives of stakeholders in every region. A key productivity growth in SMEs, Project Ireland 2040, Enterprise challenge on the preparation and At the national level Future Jobs economic needs. The coming is how it will address within increasing the business start- 2025 Renewed and Future Jobs delivery of these regional plans Ireland 2019 will give effect together of public and private their client base the issue of up rate and business dynamism, Ireland, and more specifically in will be the identification of where to national enterprise policy sector stakeholders to set regional improving their productivity. facilitating entrepreneurship the implementation of the National they can contribute additionally objectives and leverage a ‘whole strategic objectives for enterprise This challenge calls for greater among women, youth and Planning Framework and its to the existing programmes of Government’ approach so that development under the refreshed diversity in our enterprise base, migrants, scaling up micro- constituent Regional Spatial and and supports of the key local, all policy levers at the national Regional Enterprise Plans will the promotion of enterprise enterprises and generating Economic Strategies (RSESs) at regional and national enterprise level, relevant to job creation and have an important role to play productivity, the enhancement more medium-sized firms, NUTS 2 (Regional Assembly) level. support agencies. These regional labour force participation, talent in the realisation of Enterprise of the framework conditions for and increasing SME activity The Regional Enterprise Plans set plans should thus consist of development, enterprise growth, 2025 Renewed and the on-going firm creation and growth, an on foreign markets. A number out regional strategic objectives initiatives and programmes that innovation and competitiveness, Future Jobs Ireland agenda. improvement in leadership and of recommendations are and actions aligned with these are additional to the activities and transition to a low carbon management skills in SMEs and provided to help meet these national strategic documents with of the Local Enterprise Office. A key challenge for the Local economy, are engaged on an for SMEs to use technology and challenges, some of which are the actions to be carried out by Enterprise Office Donegal arising agenda that will prepare for business process improvement particularly relevant to LEOs. from this policy document Ireland’s future enterprise and to increase productivity. 16 17
1.1.5. LOCAL ENTERPRISE PLAN The Strategy envisages a drive to enhance: The generation A better The piloting of The securing Leveraging the of an increased understanding new approaches of new FDI County’s Diaspora number of new and innovative to stimulating new investment into to assist in FDI scalable start-up response to start-ups and in the county and the and enterprise firms eligible for the challenges supporting local closer integration investment in and For the next plan period a direct financial supports from facing new-start up creation. entrepreneurs, such as pre- of existing and new FDI firms into into the county. number of key national and the enterprise It is hoped accelerator the enterprise agencies. The that research and accelerator ecosystem. local challenges will need to level of new undertaken programmes e.g. be prioritised and addressed start-ups in the county is at best by Lancaster University on the the AMBITION Female Pre- by the Local Enterprise Office static with few RAP 2020 will Accelerator if any qualifying assist in this area. in 2020. while focusing on the local and for HPSU support regional strengths in the area. under Enterprise Ireland’s funding programmes. These include: Enhancing the The development Addressing Maximising the Enhancing the skills base within of sectoral the financial opportunities for ambition and existing firms initiatives and management, businesses in capabilities of and the provision clusters at both productivity areas such as the local firms to grow, of skilled labour local and regional and innovation green economy scale, and export. The creation of an ambitious and innovative new The new Enterprise Development Strategy to support level – already management and digitalisation. approach to creating a vibrant enterprise ecosystem requires a secretariat to be in place to support indigenous and LEO Donegal has capabilities of within the county. While it is likely that this will take the deployment of the Strategy and resultant FDI investments. been engaging small and micro a considerable period to achieve there is a real plans which will be private sector driven. It is pro-actively business owners need to address this challenge if the county is to envisaged that the LEO, in collaboration with with the food, and manger as compete at national and international level. This other agencies, will be this secretariat. engineering, and identified by the is reflected in the new Enterprise Development creative sectors OECD report. Strategy and Plan developed for the county. in the county. 18 19
1.1.6. SWOT ANALYSIS The following table sets out the Strengths, Weaknesses, Opportunities and Threats considered when preparing the Enterprise Development Plan for Donegal. Table 1: SWOT Analysis Donegal STRENGTHS OPPORTUNITIES Rich natural resource assets – environment, landscape, language and culture. Marine Technologies and resources. Strong culture of self-reliance. Medical sector – research, medical devices, digital health, patient health etc. Strong tourism sector. Renewable energy in particular tidal and marine. Strong engineering sector. Integrated enterprise ecosystem. Potential within the creative sector. New opportunities for entrepreneurship in the circular/green economy. Emerging Food Sector and Food Culture. Business and management enhancement through collaboration, innovation and digitalisation. Emerging medical/health and medical/health related sectors. New funding models through collaboration. Wild Atlantic Way. Harnessing of Diaspora for investment and new enterprise creation opportunities. Diverse existing economic base. Creation of local service and creative hubs. Strong Diaspora resource. Greater collaboration on education and training. Good stakeholder engagement and collaboration. Greater integration of third level in the region into the enterprise ecosystem. Strong indigenous sectors e.g. farming, fishing, engineering Leveraging of the “Donegal” brand. Good inter-agency collaboration. Cross-border opportunities arising from the city-region. Third Level Institute within the county and emerging Technological University. Potential BREXIT opportunities. Pro-active ETB within the county. Access to a range of INTERREG and EU funds. Critical mass in Donegal/Derry /Strabane City Region. Co-location of businesses north and south of the border. North West Strategic Growth Partnership Use of technology to overcome locational and operational challenges. Diverse range of enterprise space available. National, European and cross-border funding for enterprise. County strategy for remote working. WEAKNESSES THREATS Limited progress on strategic infrastructure. Unknown outcomes arising from BREXIT. Limited ambition and leadership within both public and private sectors. Significant business closures and job losses arising form COVID-19 pandemic. Limited management capabilities within the owner mangers of SMEs. Future political uncertainty and unrest in Northern Ireland. Gaps in tourism sector. Reduction in funding at central level. Under supply of bed capacity. Impact of taxes and charges on SME sustainability. Lack of marine infrastructure. Loss of momentum in the development of emerging sectors. Relative distances to larger markets. Emigration and consequent loss of educated and motivated young people. Over dependence on traditional industry sectors. Loss of potential EU funding for cross border projects arising from Brexit. Over dependence on local and regional markets by indigenous firms. Lack of investment in key strategic infrastructure i.e. A5, Broadband etc. Over dependence on GB market as the export market of choice by indigenous firms. Dependency of Agri-Food sector on NI/UK market. Lack of market knowledge and limited internal capabilities within businesses. Uncertainty regarding national corporate tax rates. Limited ability of national enterprise support agencies to adapt to county needs. Supply chain difficulties arising from BREXIT and COVID pandemic. Dispersed creative and food sectors. Structural unemployment and “welfare culture”. 20 21
The Local Enterprise Office Donegal will continue to deliver its services employment opportunities, in a targeted way to new and existing businesses across the sectors but facilitate and encourage with a particular focus on supporting the creation and expansion of those entrepreneurship, and result in businesses which have the desire and ambition to grow and export. the creation of new and more sustainable small and micro However in the context of the SWOT analysis the Local Enterprise Office enterprises in the following areas: Donegal believes that there are significant opportunities for development and investment which can assist in the creation of confidence, create Figure 2: Key Focus Areas for Donegal Enterprise FDI, Indigenous Spin-Outs, Social Enterprises Food/Sea Food Sector Creative Industries ICT/FInTech/ Blue and Green Tourism Patient Centric Health Engineering/ Mobile Tech Economies Manufacturing Through the on- going Through on-going Through enlargement of Using the natural While there has been a There is an emerging A traditional stalwart of establishment of delivery of the Food development of the FinTech cluster and assets of Donegal, the significant increase in sector in Donegal the Donegal economy, indigenous spin-out Coast programme , the Creative Coast the facilitation of greater emergence of worldwide, the visitor numbers and and the north-west there are advancements businesses, either from the facilitation of the programme and in knowledge sharing European, and national spend in Donegal. In in digital health and in Engineering and larger multinationals, Food Coast cluster particular working within the sectors. The programmes focusing recent years, the county related services. A manufacturing which larger indigenous and the identification with those creative adoption of a Remote on the Blue (Marine) has significant capacity key focus of the Local will play into developing firms or from third of key development businesses which want Working strategy for and Green economies to develop this sector Enterprise Office will the sector further in level institutions. opportunities. to grow and scale. the county by Donegal are becoming similar further and the sector be on developing, in Donegal. The needs The Local Enterprise County Council and the to post World War II is a key economic driver conjunction with key for skills aligned to the Office will seek to on-going improvements focuses on new industry for the county. The Local stakeholders such as sector are essential identify and develop to broadband availability generation. Donegal has Enterprise Office will existing businesses, but the post pandemic new programmes in are key enablers to a real opportunity as work with other sections Letterkenny Institute of shift in localizing and cooperation with local these sectors, outlined in the Enterprise within Donegal County Technology, IDA Ireland, near-shoring supply stakeholders to achieve Development Strategy to Council and with Fáilte Enterprise Ireland,our chains presents a real such start-ups. open new employment Ireland, where and when Diaspora , and key opportunity to Donegal. Social enterprises and value-added appropriate, to increase cross border partners a The foundation of – Social enterprises industries. The circular the capability of tourism possible model for the companies throughout have the potential economy is a component business owners, to future development of these sectors to be significant of these economies develop the revenue the sector in the county approaches will include: employers as well as capability of the tourism and the city-region. innovative deliverers product and to ensure FDI and Indigenous Spin- of local services and that opportunities Outs – while Donegal product producers. are maximised. has in the past been Local Enterprise Office relatively successful Donegal will where in attracting foreign appropriate support direct investment, the development of it has not been as such enterprises. effective in encouraging and facilitating the 22 23
1.2. Review of 2017-2020 During the period 2017 to 2020 the actual number of LEO Overall the targets set in the previous plan in relation to the Business Continuity Vouchers was brought in by Government to apply its mentoring support judiciously and primarily at its Donegal portfolio clients reduced in number from 266 to number of projects to be grant and there were 570 Business core client portfolio with the aim aided, mentoring approvals, Continuity Vouchers approved of maximising its impact. Again 242 and the employment decreased from 1,431 to 1,283. programmes and workshops with over 700 applications having with the onset of COVID the LEO The reasons were primarily the closure of a number of the (both in number and participants), and the number of schools and been received. Overall in 2020 the level of applications and was required to amend this policy and made its mentoring available businesses, the removal of some of the businesses from the students on the Student Enterprise approvals increased by tenfold to any business in need of such Programme were all achieved with over €2.7M being approved support. It also waived the 20% portfolio (one employing 70+ employees) and the negative or exceeded( as per Table 3). It in direct support to businesses. cost contribution. It is intended effects of COVID in 2020. At the end of 2020 there were 242 should be noted that the very significant increase in the number The areas not achieved were the that once the local economy begins to recover from COVID increase in the portfolio and in the clients on the portfolio employing a total of 933 full-time of TOV approvals was due to the jobs within these firms – much that this focusing of not alone revisions made to the scheme in the mentoring support, but the and 350 part-time employees. 2020 in particular the increase in of which can be attributed to the difficulties that many businesses other non-grant supports of the the grant rate from 50% to 90%. In LEO, will once again be primarily experienced because of COVID-19. addition to the targets set in 2017, on its core portfolio clients. As per Table 2, during the four with the objective of enhancing the the Local Enterprise Offices and in 2020 in response to the COVID It should also be noted that it was years the performance of the client engagement and measuring thus a significant increase in the Pandemic a new scheme called the stated aim of the LEO Donegal Local Enterprise Office in Donegal the outcomes of each programme. programmes and workshops. The with regard to project approvals, As can be seen some progress ability to deliver these programmes workshop and programme was being made toward this up and workshops online also made delivery remained strong. The until 2020. With the arrival of it easier to deliver these services Plan for 2017 – 2020 had a stated the COVID pandemic there was but the real added-value of objective of reducing the number an unprecedented demand for them has yet to be considered. of programmes and workshops supports and engagement with Table 2: LEO Donegal Performance 2017 -2020 Table 3: Achievement of 2020 Targets 2017 2018 2019 2020 2021 2020 Target 2020 Achievement Variance M1 grant approvals 21 30 32 26 109 LEO portfolio 260 242 -7% TAME approvals 9 7 10 7 33 Total Employment in portfolio 1,450 1,283 -11.3% Other- Agile, LIF, Comp. 9 1 1 - 11 Number of courses/workshops 55 91 +65.5% Mentoring 37 93 106 220 456 Participants – courses/workshops 1,500 4,614 +307.6% Number of M2 programmes/workshops 94 86 79 91 350 Number of mentoring assignments 40 220 +450% M2 participants 1,613 1,536 1,776 4,613 9,538 SEP – number of schools 15 22 +46.5% SEP - number of schools 22 24 22 22 8,328 SEP – number of students 700 1,201 +71.5% SEP - students 885 890 336 1,201 3,312 Trading Online Vouchers 35 473 +1,251.5% TOVs 47 47 44 473 611 Transfers to Enterprise Ireland 5 6 0 BCVs - - - 574 574 24 25
1.2. Review of 2017-2020 During the four years of the previous plan significant additional programmes and pilots were developed and delivered. These include: The delivery of The completion of a new Enhanced stakeholder The development of a an Investment plan for the Creative involvement in the new website, e-zine, Accelerator in 2019 Sector under the Creative development and food series and food with participants from Coast cluster and the delivery of Local directory within the Food Dublin, Sligo and the delivery of a dedicated Enterprise Week Coast cluster which now east coast of the USA. one-to-one programme in the county. has 170 members. to businesses in the sector with a particular focus on job creation as its key output. The delivery of an Delivery of a number Delivery and Design and delivery of a export development of INTERREG Europe achievement of the Female pre-accelerator programme on a cross funded projects including targets for the LEO programme in 2020 border basis with Derry EIS with its focus on under the cross which was also open to City and Strabane internationalisation and border Co-Innovate members of the Donegal District Council with 38 which produced the programme led by Inter Diaspora and from firms participating. assessment template Trade Ireland and on which four promoters for the cross-border which LEO Donegal have already received export programme, represents the border support from the LEO. PASSPARTOOL with its LEOs on its management focus on innovation committee. in SMEs and SinCE AFC with its focus on entrepreneurship in the circular economy. 26 27
02. VISION/MISSION AND OVERARCHING OBJECTIVES Grow Start Pre-Start
2. VISION/MISSION AND OVERARCHING OBJECTIVES 2.1. LEO Vision 2.2. Mission Statement The following is the national and local vision and mission for the Local Enterprise Offices: To develop and sustain We aim to promote an innovative enterprise entrepreneurship, foster ecosystem at local level sustainable business throughout the county that start-ups and develop will in particular drive new existing micro and small added-value start-ups and businesses to drive job key sectoral initiatives and creation and to provide further the growth of small accessible high-quality and micro enterprises and supports for new business enhance local economies. ideas. We also aim to be a driver of an innovative and highly engaging enterprise ecosystem within the county. Entrepreneurs and Businesses will be supported to: Increase Build Increase Prepare Embrace Innovate Be Managed Fuel County Exports Resilience Productivity for the the Digital by Ambitious & Regional Low Carbon Economy & Capable Growth Economy Individuals 30 31
2.3. Overarching Objectives The following section details the overarching objectives of the LEO as per the Enterprise Ireland/ Local Authority Service Level Agreement. 2.3.1. BUSINESS INFORMATION & ADVISORY SERVICES Make It Easier to do Business Secretariat for the new Donegal Enterprise Development Strategy and Plan LEO Donegal will provide supports, guidance and LEO Donegal will provide full secretariat services solutions that make it easier for entrepreneurs, to the Private and Public sector in the deployment owners and managers to identify opportunities and of the new Enterprise Development Strategy and implement actions to start-up, grow and thrive within resultants plans. These will be private sector driven a competitive business environment in Donegal. initiatives across the seven sectors and working with It will seek to integrate the services of the LEO academia, industry, and communities to bring about First Stop Enterprise & Business with key sections within Donegal County Council, new ecosystems of enterprise development in the Support Solution in particular the Economic Development Unit. county. The plans require a real focus on the enhanced orchestration of activities across agencies hence During the previous plan period LEO Donegal For the period 2021 -2024, the requirement for a secretariat to achieve this. sought to continuously inform itself of EU, acting as “the first point of contact” at local level, the Local national and regional support offerings, Enterprise Office will seek to build organised monthly Business Information on its role as the recognised Sessions, promoted the services of the business information, advice Enterprises Europe Network, worked with and referral service within the the EURES cross border programme in county for anyone wishing or raising awareness of its services, and proposing to establish or expand a new or existing business, pro-actively promoted the services of the so that all business enquiries Local Enterprise Office. LEO Donegal will receive appropriate and timely continue to promote and deliver these information and direction. services as well as working in collaboration The Local Enterprise Office will with other agencies in promoting its also seek to actively drive the role as the First Point of Contact. development and delivery of an innovative and highly engaging enterprise ecosystem within the county to address the challenges and opportunities for enterprise throughout the county. It will continue to facilitate the Enterprise and Skills committee to ensure close collaboration and co-operation between the local enterprise stakeholders, to maximise available resources and to remove duplication of effort. 32 33
2.3.2. ENTERPRISE SUPPORT SERVICES 2.3.3. ENTREPRENEURSHIP SUPPORT SERVICES Maximise Business Potential Collaborate with Promote a Best Practice Enterprise Culture Enterprise Ireland During 2017 -2020 LEO Donegal worked closely with local During the period For the forthcoming period LEO Donegal will: During the last plan period stakeholders in the delivery and promotion of the annual Local 2017-2020 LEO LEO Donegal worked closely Enterprise Week, worked closely with ETB Donegal in addressing Donegal delivered a with Enterprise Ireland the skills deficit in the engineering sector and worked through the range of programmes through contributing to the Diaspora project to encourage collaboration between LYIT, ETB and supports aimed Seek to create Deliver a quality suite Support the implementation of actions Donegal with Ulster University and NW College in Derry. It also at enhancing the employment of support services that development of small under the Regional Enterprise delivered the online case studies – Donegal Stories and produced two knowledge and opportunities throughout equip entrepreneurs, and micro businesses Plan, through involvement in publications – “Donegal-We Make Things” and “Donegal – We Create”. management capability the county by assisting owners and managers in Donegal by assisting the New Frontiers programme For the period 2021 -2024 LEO Donegal will continue to act as the within small and micro in the establishment with the knowledge to in enhancing their and in promoting the relevant catalyst and advocate for the establishment of a best practice firms in Donegal. of new businesses plan, grow and sustain competitiveness, EI offerings to the LEO client enterprise culture among start-ups, micro and small businesses; Examples of such and by enhancing their businesses in innovativeness, base. A number of core portfolio also promoting enterprise and self-employment as a viable career programmes were the development particular through export-orientation, clients were also transferred option among the wider population. It will draw from the research the LEAN for Micro and sustainability of innovation and management and to EI during the plan period. being undertaken by Lancaster University under the Regional programme, the NW existing businesses. internationalisation and digital capabilities A critical challenge however has Action Plan 2020 to inform it as to how best to achieve this. Export Programme, the enhanced efficiency and sustainability. been the lack of flexibility within Co-Innovate Innovation and competitiveness. Enterprise Ireland to respond to programme, the local/regional initiatives outside ACHIEVE and GENERATE of national programmes or calls 2.3.4. LOCAL ECONOMIC DEVELOPMENT SERVICES programmes. It also such as the REDF. This remains facilitated a number of something that the Enterprise Environment for Start-Ups sector initiatives and Support the further Strive to increase the Support business Development Strategy teams may clusters in particular in development of clusters pool of indigenous creation and During 2017 -2020 LEO Donegal worked closely with Donegal revert on in the coming period. the engineering, food in the engineering, business at local level, development in key County Council and with the new Economic Development Unit and creative sectors as food, creative, blue and in particular the number sectors and areas of For the new plan period the LEO that was established in 2019 to promote its objectives across the well as facilitating per ICT/Fintech sectors of growth-oriented identified opportunity will continue to work closely Council. It worked closely with the Donegal County Enterprise Fund learning through the and where possible and export-oriented for Donegal: food/ with Enterprise Ireland at Company in the completion and management of the new enterprise Profitnet programme. seek to strengthen businesses and where seafood, creative sector, regional and national level to centre in Glenties which opened in March 2019 and in the on-going the linkages between appropriate assist engineering, medical facilitate potential progression of management of the Enterprise Fund Business Centre in Letterkenny. cluster firms with in the development devices/e-health, ICT/ companies from LEO Donegal to It made a number of applications under the REDF and BEDF but third level institutions and transfer of high mobile technologies, EI and where appropriate, from unfortunately none of these were successful and also supported a and larger indigenous potential clients to circular economy and EI to LEO Donegal. It will seek number of other applications developed by other local stakeholders. and FDI businesses. Enterprise Ireland. spin-outs. This will to facilitate access to relevant LEO Donegal will seek to leverage the full range of potential entail the development EI support programmes for enterprise support/economic development promotion and implementation LEO clients, including financial, mechanisms across the Local Authority’s economic development of sector specific business and innovation/ remit, including enterprise space, rates framework, rural initiatives, which will research facilities and access economic development zones (REDZ), etc. to assist and include facilitated to Enterprise Ireland’s overseas enable more start-ups and small businesses in county. networks, new support offices to assist clients who wish models, new enterprise to expand into export markets. The Local Enterprise Office will seek to provide focus and direction infrastructure for collective enterprise and economic actions at local level To continue to implement the and facilities. toward the delivery of the higher level Strategic Enterprise Plan. formal processes for the two-way transfer of clients to and from This strategy seeks to raise the ambition and performance of Enterprise Ireland so as to ensure all enterprise and economic stakeholders including the county’s the delivery of appropriate client businesses at local and county levels, and in particular to achieve services and maximum impact. enhanced outcomes through “added-value collective projects”. 34 35
03. STRATEGIC PRIORITIES Grow Start Pre-Start
3. STRATEGIC PRIORITIES 3.1. Strategic Priorities for LEO Donegal 2021-2024 The following actions seek to address the strategic priorities for Local Enterprise Office Donegal for the period 2021-2024. 3.1.1. ENTREPRENEURSHIP As previously indicated the levels There needs to be closer engagement by all stakeholders such as education It will develop new It will run an annual pre- The LEO will pilot a All pre-accelerator and of new start-ups and in particular and training providers, enterprise support agencies and organisations, pre-accelerator and accelerator for female Tech-Start programme accelerator programmes High Potential Start-Ups (HPSU) in Donegal County Council and private businesses. There also needs to be accelerator programmes entrepreneurs to try targeted at potential will be open to Diaspora the county relative to most other greater focus on developing identified sector opportunities and clusters that will be run on an to get greater levels of spin-outs from participation and LEO counties is low. New approaches and this needs to be committed to on a long-term (10 year) basis. annual basis to seek to female start-ups. The existing FDI, the larger Donegal will seek to draw and models are required and facilitate high potential pilot programme in late indigenous companies in on the expertise and While the Local Enterprise Office will actively work and engage in these Local Enterprise Office Donegal start-ups which at a 2020 had by April 2021 the county and at third insight from those within strategic priorities it will continue to develop its core supports to believes that a fundamental minimum will be eligible already resulted in 4 level graduates. The first its Diaspora network promote entrepreneurship and enterprise start-ups while seeking to change must happen within the for M1 support from the of the 11 participants such programme will be who are engaged in integrate these strategic priorities/actions within all its supports. enterprise support /enterprise Local Enterprise Office accessing M1 support. delivered in June 2021. business development ecosystem for this to happen. (similar to the pilot and investment. Female Pre-Accelerator In this context the LEO will: delivered in 2020) Continue to deliver on Actively promote local Actively promote Continue to co-ordinate Where opportunities Through the Enterprise The LEO will seek to the Schools Enterprise business case studies IBYE and work with the delivery of Local are identified for and Skills committee in identify and develop Programme and engage as examples of good its participants to Enterprise Week in entrepreneurship and the county the LEO will suitable projects for with the Donegal ETB practice and role models generate a pipeline Donegal as a major new business start-ups seek to maximise the EU and cross-border on how the programme such as those published of new start-ups. annual flagship project in areas such as the levels of collaboration funding and to draw can seek to achieve in “Donegal We Make within the county circular economy, the among the enterprise on the experience and more measurable Things” and “Donegal and nationally. green and blue economy, stakeholders within the good practice from long-term outputs. We Create” and as on medical healthcare, county and at regional existing EU projects “Donegal Stories.” food and other identified level in particular the to enhance existing sectors the LEO will seek Donegal ETB, LYIT, and new supports. to respond by developing Enterprise Ireland and bespoke programmes Údarás na Gaeltachta. in conjunction with Organise a major Continue to host To address the on-going Deliver the general SYOB local stakeholders local event as part the annual Donegal demand for training and sector specific or on its own. of National Women’s Enterprise Awards. on business start-up it SYOB programmes Enterprise Day annually. will continue to deliver such as Food Starter. its SYOB programmes but will seek to carry out periodic review to assess the content, output and outcomes of these programmes. 38 39
3.1.2. COMPETITIVENESS AND DIGITALISATION 3.1.3. GREEN/BLUE/SUSTAINABILITY LEO Donegal has begun an in-depth Currently LEO Donegal is a partner in the INTERREG analysis of its portfolio clients and will use Europe funded SinCE-AFC project which is focused this analysis as the basis for the targeting on entrepreneurship in the circular economy. of its supports at its core M1 portfolio Through this project it intends to develop an action clients and those previous recipients of plan focused on identifying opportunities for new M2 support which have the ambition to business start-ups in the circular/green economy grow and scale. and on how best these can be supported. This plan will be completed in late 2021. In particular it will: To assist exiting firms address challenges around sustainability, reducing their carbon- footprint, and Actively promote and deliver the It will ensure that all management It will target its management improving their efficiencies the LEO will deliver the LEAN for Micro offerings (1-2-1 development programmes development programmes Green for Micro programme (both the Border and and 1-2-many) to its portfolio. will include modules on in the first instance at its national programmes). Under this action it will: competitiveness and digitalisation. core M1 portfolio clients. Actively promote and deliver Carry out an analysis of all Deliver on-going workshops on the Trading Online Voucher TOV approvals with the aim of digital skills, digital marketing scheme as the first step for small identifying those businesses that and digital tools to ensure that businesses into export markets. may have significant potential owner mangers of small and micro to grow their online sales and enterprises in the county have Seek to include a strong It will continue to It will develop a new Complete the delivery of subsequent employment. every opportunity to enhance focus on sustainability participate with Donegal programme to promote the SinCE-AFC project their familiarity and adoption of and the green agenda in County Council in the and support new start- and adopt the learning digital processes and tools. the delivery of the LEAN NW cross border Green ups in the circular/green and good practices from for Micro programme programme which economy as identified the project into the LEO to its clients. seeks to address a in its action plan. offerings and support. range of environmental sustainability challenges common to both side of the border. 40 41
3.1.4. INNOVATION 3.1.5. EXPORTING/INTERNATIONALISATION The Local Enterprise Office Donegal small and micro firms have been funding, it is constantly occurring LEO Donegal has been active in programme in 2019 and in 2020 that the internationalisation of has significant experience in the delivered. The LEO is also currently - as recognised in the report the design and delivery of export in conjunction with Derry City & LEO firms must be a long-term delivery of innovation programmes engaged in the INTERREG Europe “Leading the Way – Investing in supports, programmes and market Strabane District Council. It is objective and may be better to its client base in Donegal. This funded PASSPARTOOL programme Management Development for SME visits for over five years. It has also managing the Border Brexit approached though cluster has been primarily based on its which is aimed at identifying Productivity and Growth” (October taken groups of firms on market export programme for the NW. development through which a previous strategic alliance with the best practices in innovation 2020). The key challenge therefore entry visits to Europe, the UK number of complimentary firms However it must be acknowledged Centre for Research and Innovation across the business, cultural for the LEO is to get micro and the USA. It has participated are assisted to identify and that the number of LEO portfolio at the University of Brighton. Under and social economy sectors. firms to adopt formal internal on the EIS Internationalisation develop common opportunities. clients that have the market this alliance the Profitnet model processes for the promotion, INTERREG Europe project from While innovation in small and knowledge, skills, capability and has also been applied in Donegal development and implementation which it has applied the EIS micro firms is often not formally resources to enter new export – a model focussed on innovation of innovation and innovation toolkit and it has delivered a recognised as it is generally not markets are relatively few and development through peer processes within their businesses. cross-border export development measured or codified, linked to learning, and a range of innovation third level research or funded management programmes for under on national or European To achieve this, the LEO will: During the plan period LEO Donegal will: Continue to deliver on the Ensure that innovation process Collaborate with LYIT in developing Continue to develop and Deliver export workshops Collaborate with EI in maximising Profitnet peer learning network. management is integrated into suitable innovation supports deliver export development with a particular focus on its overseas offices to assist all management programmes for small firms in the county. programmes for its core portfolio. providing specific market Donegal firms seeking to and within each cluster. In this context given the limited information and insights. enter new export markets. geographical reach of the EI export programmes the LEO will seek the active promotion of these programmes to the EI client base within the county as well. Support the generation of Support the establishment of Continue to promote the R&D Support the clusters within Consider providing export coaches Engage with LYIT to investigate innovative start-ups by identifying innovative start-ups through and Agile programmes of the county to attend market to identified firms to assist them the potential of using Masters key development opportunities the delivery of pre-accelerator Enterprise Ireland to the core entry visits and use the TAME implement their export plans students to carry out detailed within the “Sector Opportunities” and accelerator programmes client portfolio base of Local grants to this end to assist over an 18 month period. market research for firms as identified within the plan. with a specific target on FDI, Enterprise Office Donegal and groups and individual firms. part of their course work. large indigenous firms and other eligible businesses. third level spin-outs. Collaborate with Enterprise Ireland Maximise the Enterprise Europe Work with LYIT in the development to ensure that when clients are Network (EEN) supports to of a suitable support measure capable and where they will be assist firms identify new market to assist small and micro firms guaranteed support to transfer opportunity and access to the EEN understand address supply- them to Enterprise Ireland. network at local level, in particular chain management challenges. within European partner countries. 42 43
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