The bISME issue 3, 2018

bISME Volume 1 Issue 3

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WINTER 2018

T H E B U S I N E S S O F I R I S H S M Es

Switched on to SMEs Entrepreneur and broadcaster Conall O’Móráin on the crucial value of the SME sector to the Irish economy

ISME ANNUAL CONFERENCE: THINK 25 A day to look to the future BREXIT LOOMS Could your business live with a 20% sterling swing?

GROW YOUR BUSINESS Increased levels of training vital for SMEs BUDGET 2019 Did SMEs get sidelined?

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Contents

17 Kildare Street, Dublin 2, Ireland.

Phone : (01) 662 2755 E-mail: info@isme.ie Web: isme.ie

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CONTENTS A Message from the Chief 04 Executive Neil McDonnell looks ahead to 2019.

05 Published by IFP Media Castlecourt, Monkstown Farm, Glenageary, Co. Dublin, A96 T924 Tel: +353 1 709 6900 Email: info@ifpmedia.com Web: www.ifpmedia.com Editor: Bernard Potter Design: Ciarán Brougham Advertising: Bryan Beasley Chief Executive: Rebecca Markey Accounts: Tricia Murtagh Administration: Sue Nolan The bISME is the official publication of ISME. Individual views expressed in the magazine do not necessarily constitute ISME policy.

Although every precaution has been taken in the preparation of this publication, the publishers assume no responsibility for errors or omissions.

Copyright The bISME 2018. No part of this publication may be reproduced in any material form without the express written permission of ISME.

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The b News News from the SME sector and the wider economy.

The Big Interview: Switched on to SMEs Conall O Móráin, CEO of The Media Group, is a passionate advocate for the SME sector.

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Learning & Development: Grow your business through training Improved quality of management and training vital for SMEs.

Insurance focus: Be protected in 18 business Understanding directors risk and liability and how you can protect yourself.

The b Issue: Budget 2019 SMEs seemed to get sidelined in Budget 2019.

ISME Annual Conference: Think 25 Looking at business in the future for SMEs is the focus on November 21st.

The b Insight: Could Your Business Live With a 20% Sterling Swing?

The risk of a ‘No Deal’ outcome in Brexit negotiations.

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Another side of…

TQS Integration with Máire Quilty, Director.

ISME: At work for you Were SMEs sidelined in Budget 2019?

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Volume 1 Issue 3 Winter 2018

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A Message from the Chief Executive

Finalising your business strategy for 2019 A wise logistician once said that there are two types of forecasts: lucky and wrong.

Therefore, I have absolutely no predictions to make about the shape of the UK/EU Brexit negotiations, except to say that they will be interesting, and, I hope, won’t hurt Ireland too much.

However, it’s also prudent to plan for the worst. If you haven’t made a Brexit plan for your business, here is a good place to start. And don’t forget, you can also avail of consultancy funding provided by Enterprise Ireland to mitigate the effects of Brexit on your business.

SBCI BREXIT LOAN SCHEME

If you haven’t availed of the Strategic Banking Corporation of Ireland (SBCI) Brexit Loan Scheme, now is the time to consider it. The application process is not as hard as you might think, and if you need help, call us and we’ll direct you to the right people.

PAYE MODERNISATION

With the unbroken Brexit talk in the air, it’s easy to forget that the Revenue is bringing in the biggest change to employee tax since the introduction of PAYE. If you haven’t done so yet, you need to be discussing the PAYE Modernisation Changes – which kick in on January 1st – with your payroll provider now.

Those at the Annual Conference on November 21st can attend two breakout sessions about this topic, delivered by the Revenue Office.

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PERJURY BILL

After more than a year campaigning for a Perjury Act, we’re delighted to announce that, on October 17th, Senator Pádraig Ó Céidigh introduced his Perjury and Related Offences Bill 2018 in the Seanad. It is cosponsored by Senators Victor Boyhan, Ian Marshall, Michael McDowell, and, I hope, will enjoy widespread support when it makes its way into the Dáil. Our interest in this is the prosecution of perjury offences committed by personal injuries plaintiffs taking their cases before the courts. Prosecuting them has proved almost impossible, a situation we hope will be rectified by a robust Perjury Act. We will need your help with local lobbying to get this over the line.

GETTING YOUR VOICE HEARD

Budget 2019 was a real let-down from an SME point of view. We cover the issues in more detail later in this edition of The bISME, but we need to get the small business voice heard among our political classes. If

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Neil McDonnell, Chief Executive, ISME.

small business owners have a vice, it is in not impressing on their local politicians, of all parties, the contribution their business makes to the local community: in sponsorship, in tidy towns, in maintaining the local environment, and in providing employment. Too often, business owners are comfortable telling the politicians they vote for how good they are, while ignoring the others.

Take a leaf out of the farming lobby play-book. It is important to engage with all politicians, of all political parties and none, in your local area. Don’t wait for them to canvas you, or you’ll see them only once every five years or so. Canvas them, regularly. Book into a constituency clinic. Make a phone call. Send an email. Have a chat with them at a local funeral; they’re usually good at showing up there. Have a look at the ISME policy area and see which of those issues matter to you. Make common cause with other local businesses, and make sure your Ministers, your TDs, and your Councillors hear you.

And, if shaping policy is your thing, consider standing for election to the ISME National Council next March!

Have a great Christmas and a prosperous 2019!

Neil McDonnell Chief Executive, ISME

CONTENTS

The b News

Mark O’Connor joins ISME as HR Advisor:

“It’s a pleasure to join the ISME Human Resources division.

Having previously worked as inhouse HR support, I have a deep understanding of the challenges faced by employers and I hope to use my experience to offer practical support that provides real life solutions to employers. I look forward to hearing from you.”

Wayne Tobin joins the ISME team as Press, Policy and Research Officer:

“I have previously worked in the NGO sector and for a number of high-profile politicians at national and EU level in the area of communications. I hope to use my public affairs experience to assist the Association in the years ahead and look forward to working with you.”

ISME BIDS FAREWELL TO VALUED COLLEAGUES After two and half years of working in ISME, Michael Flanagan is moving on: “I am sorry to say I am finishing up as research officer with the Association. This is a role I was privileged to be given and one I have enjoyed immensely.

My time with ISME has allowed me to grow as an individual, both personally and professionally, and for that I am thankful to the Management, National Council and to my colleagues (friends). Thank you for all of your best wishes.”

ISME is also saying goodbye to Niamh Heneghan, HR Advisor: “Working in HR here, I have come to know many of our members. Although I never had the opportunity to actually meet most of you I wanted to take this opportunity to say thank you for your support and kindness and best of luck for the future!”

CONTENTS

ISME MEMBERS – WHAT’S ON YOUR MIND? BUDGET 2019 “The budget this year seemed like an attempt at balancing the budget with no real initiatives put in place to help the future direction of the country. The increase in the VAT from 9% to 13% for the hospitality sector had to happen at some stage – it just happened to be this year.

This does highlight the fact that we have two operating economies: Dublin and the rest of the country. I would have expected the Government to have done something to ease the housing crisis rather than just throwing money at it. A clever thing they could have done is to incentivise companies to decentralise their work forces to locations outside the main metropolitan areas. This could help alleviate the housing crisis, allow companies to save money on expensive real estate in the cities, and increase the pool that companies can recruit from. This would all greatly contribute to rural regeneration.”

ADAM COLEMAN, CEO, HR LOCKER “Regulation on crowdfunding may or may not have a positive impact on the thousands of SMEs in Ireland. However, if implemented correctly it will hopefully see an increase in the use of crowdfunding by SMEs allowing them get easier access to funding in a quicker and more efficient manner to grow their businesses. It is hoped that not too much ‘red tape’ is implemented in the new measures enabling the continued seamless process that has become synonymous with crowdfunding.”

MARC O’DWYER, CEO, BIG RED CLOUD

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ISME WELCOMES NEW MEMBERS OF STAFF

The B news

A BUSY TIME FOR EDI

BE PREPARED GRANT The Be Prepared Grant offers up to â‚Ź5,000 to assist in the cost of developing a strategic response to Brexit. The grant is intended to provide support to clients to use external resources to undertake a short assignment to determine how they could respond to the threats and opportunities of Brexit.

The grant can be used to cover consultants’ fees, travel and expenses for both domestic and international employee travel.

TAKING CARE OF BUSINESS

EDI posted the tweet of the night at the Chambers Ireland CSR Awards.

SBCI BREXIT LOAN SCHEME The Strategic Banking Corporation of Ireland (SBCI) Brexit Loan Scheme is offered in partnership with the Department of Business Enterprise and Innovation, the Department of Agriculture Food and the Marine and is supported by the InnovFin SME Guarantee Facility, with the financial backing of the European Union under Horizon 2020 Financial Instruments. The loans are available through AIB, Bank of Ireland and Ulster Bank.

Approval of loans are subject to the banks own credit policies and procedures. Apply here.

CONTENTS

ISME Marketing Executive Ciara Whooley attended the Taking Care of Business event in Limerick on September 25th, meeting SMEs and discussing the services provided by ISME, as well as the resources available on isme.ie.

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T H E B U S I N E S S O F I R I S H S M Es

Employer Disability Information (EDI) have had a busy few months attending events across the country, meeting with employers and answering their questions about the recruitment and retention of staff with disabilities. EDI was delighted to be a judge at the Chambers Ireland CSR Awards on September 20th at the Clayton Hotel Burlington Road, Dublin and even managed to win best tweet of the night!

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USEFUL EVENTS FOR SMES Selling to Government – Intermediate Breakfast Briefing November 21st, 8.00am - 10.30am Clayton Hotel Silver Springs, Cork

Living the Experience of Raising Venture Capital

November 27th, 8.00am - 4.30pm Grand Canal Hotel, Dublin

Tendering in the Public Sector Construction Market

PROMOTIONAL OPPORTUNITIES WITH ISME Here at ISME we are always looking for opportunities to promote members through our own channels and through the media, here’s some ways we can do that: Free job advertising Members can upload job vacancies via the Members Area. This resource is already being utilised by members, it’s free and easy to use.

The tool allows you to reach a wider audience as the job is visible to the public and is promoted across our social media platforms.

Members’ News on the website Members now have the ability to upload their own news via the Members Area which can be viewed in the Latest News section of the ISME website. News may include: the celebration of milestones, new product launches, staff announcements or awards won. This news will then be shared across our social media channels and may even be featured in our publications.

Advertising opportunities You can place ads in our quarterly online publication, The bISME, which is circulated to over 16,000 business people in Ireland. You can book advertising with, or get more information from, Bryan Beasley, email: bbeasley@ifpmedia.com or view the media pack here.

Free advertising in the M2M Marketplace This e-book is published quarterly, circulated to ISME members and contains special offers for members.

For further information please contact marketing@isme.ie Members in the media ISME frequently gets queries and requests from journalists about SMEs in Ireland. We have compiled a list of members who would like to be contacted by media and, if you would like to be involved, please email ciara@isme.ie.

December 6th, 9.00am - 5.00pm Clayton Hotel, Galway

T H E B U S I N E S S O F I R I S H S M Es

Equity Advisory Clinic December 18th, 8.30am - 3.30pm DogPatch Labs, CHQ Building, Dublin

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CONTENTS

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The Big Interview

Switched on to SMEs Conall O Móráin, CEO of The Media Group, not only runs an SME himself, but is also a passionate advocate for the sector that “keeps Ireland working in every sense.”

Stockbroker, broadcaster and media entrepreneur, Conall talks to The bISME about his career, his future plans for The Sunday Business Show and the buzz he gets from chairing ISME’s Annual Conference.

Conall O Móráin, CEO of The Media Group.

Talk us through your career in media and business?

T H E B U S I N E S S O F I R I S H S M Es

I studied Arts in UCD where, among many other things, I set up a gossip magazine called Gobshout.

Its commercial success paid for my fees, a car and a very (un)healthy social life. That got me noticed in RTÉ, where I was hired as a trainee journalist. From there, I fronted TV news programmes and then set up the station’s business news coverage. I left RTÉ for a longish spell stockbroking and, when that firm was bought out by ABN AMRO Bank, I headed back to my first love, media.

After broking, I was in charge of corporate PR in a large PR company and then, in 2001, Goldman Sachs asked for my help with communications for the Tony O’Reilly-led Eircom mega-takeover, which led to me setting up The Media Group (TMG). I’ve been in PR ever since. I also set up and then sold a local newspaper, almost launched a ‘seniors’ magazine, wrote regular columns for The Sunday Business Post and the Daily Star, made TV programmes and, for 13 years, until very recently, I presented The Sunday Business Show on Today FM. Why did you set up your own business?

I give a conference talk nowadays called ‘The Misfits’.

Not the 1961 Western movie, it’s the name I’ve given to entrepreneurs both big and small because I think one common factor is that they don’t fit in elsewhere – hence they are misfits. Like artists or musicians, they must express themselves through what they do. I didn’t realise it for quite a while, but I was a misfit until I set up TMG. Finally, I could make my own mistakes!

What changes have you seen in the media sector in recent years?

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I doubt if there is any industry that has seen such changes since I founded TMG. Newspapers are in terminal decline, radio is probably heading the same way (to be replaced by podcasts). TV as we know it won’t exist in five years’ time. PR has quietly changed its name to marcomms (marketing communications).

The old-fashioned press release, that industry staple, is probably redundant at this stage. The challenge is to find ever-newer ways of communicating messages (for TMG, corporate messages) via traditional and new media. Latterly, we’ve found a new niche – business development on behalf of clients. We’ve had some great successes finding new business opportunities and connecting our clients with them, worldwide. It’s just another form of communication after all.

I love the smell of entrepreneurs in the morning.

The communications sector is highly competitive, what makes a business stand out?

Specialisation. You have got to offer something different. One of the taglines I developed for The Sunday Business Show was that anyone who wanted to be a guest had to show their business wanted to ‘get off the island’. There are under seven million people on the island of Ireland; there are 7.2 billion people who don’t live here. If you asked a class of seven-year olds which market had the greater business opportunities they would, of course, say ‘off the island’. That’s why TMG is helping to bring our clients overseas.

CONTENTS

The Big Interview Category The Sunday Business Show on Today FM ended in July this year– what are your thoughts on that?

When a station’s highest-rated Sunday show is cut, it is unusual to say the least. The Sunday Business Show (SBS) was a business show like no other. We were all Team SBS, the guests and the production team, all in it together. I’m waiting (impatiently) for the perfect sponsor to get Team SBS back on the road, via podcast, the easiest way possible for anyone to listen to ‘radio’ nowadays.

Conall chairs the ISME Annual Conference for the third year in a row on November 21st: “I love the buzz.”

Why are you such a big advocate for Irish SMEs? Without wandering into politics, SMEs are what make the economy tick. I recognise their contributions (the hours, the frustrations, the challenges) in keeping my Ireland working in every sense. Therefore, as a citizen, why would I not be their advocate? After 13 years with SBS, I estimate that I interviewed possibly 4,000 SMEs, each one became a Team SBS member and each one is a hero to me.

What are the major business challenges TMG has overcome?

After 13 years with SBS, I estimate that I interviewed possibly 4,000 SMEs. What advice would you give an SME in today’s competitive climate?

The only way to be successful in business is to be passionate about it. I know it’s a cliché, but when it’s a passion, it’s no longer work. When you’re passionate about your business, you hire people who share that passion. In stockbroking, we were taught that companies should always plan for a sale. You don’t have to sell, but it’s a bit like when you’re selling your house, your house probably looks the best it has for years. Your business should always be at its best.

You will be chairing the ISME Annual Conference – why do you enjoy being part of this event?

It will be my third year in a row and I’ll be able to use a phrase I borrowed from the movie Apocalypse Now, when I say that ‘I love the smell of entrepreneurs in the morning’. I love the buzz.

The three pieces of advice I give myself every day: 1.

Embrace change – it brings you somewhere new and good.

2. Network – how can you sell your goods or services if people don’t know how brilliant you are?

3. Ask – when I was broking, an American client in London said I wasn’t asking him forcefully enough to buy a particular stock. He thumped his desk and told me to ‘ask’. If you don’t ask, you don’t get.

Passion, planning and people are the three ‘Ps’ that many business owners attribute their success to. Do you agree?

CONTENTS

ISME’s Annual Conference Think 25 is focusing on business over the next 25 years. What do you think the business landscape will look like by 2043 and, in particular, what will be the role of money and technology?

Watch kids use money, they’re using cards not cash.

My Ulster Bank branch no longer handles cash. Cash will disappear, though I think crypto is tech hype.

Tech will be all-pervasive. The bots are already here.

Who knows what it’ll bring but it’ll be interesting and exciting.

Join Conall on November 21st in the Citywest Hotel.

Find out more about the conference here.

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T H E B U S I N E S S O F I R I S H S M Es

In 2008, TMG was thriving and the envy of many as we counted the Dept. of Finance, the Dept. of Enterprise, Enterprise Ireland, Udarás na Gaeltachta, the Institutes of Technology and many others as clients. By the end of 2008, most, if not all, of those State clients had completely cut their PR budgets. We managed to survive. Not all SMEs did. We’re now thriving again, particularly with a business development focus that we’re implementing on behalf of our clients.

Businesses must re-invent themselves constantly.

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The b Issue

Budget 2019: A missed opportunity for SMEs? In what was pitched as ‘the Brexit Budget’ and at a time when the Government should be doing more than ever to support entrepreneurship, SMEs seemed to get sidelined in Budget 2019. But increased capital expenditure of €7.4 billion will certainly help to foster indigenous growth. So did the Minister Pascal Donohue do enough to KEEP SMEs engaged?

THE KEEP

The KEEP (Key Employee Engagement Programme) scheme is a share-based incentive programme intended to support SMEs in attracting and retaining key employees. Budget 2019 announced an increase in the grant amount to 100% of salary, and an increase in the award limit to €300,000 per employee.

However, the three-year limit for grants has been replaced with a lifetime limit, which suggests that employees may be restricted to a single lifetime gain.

Are employees engaged? Unfortunately, not one company in Ireland has fully introduced the initiative since its introduction in 2018 due to entry barriers!

T H E B U S I N E S S O F I R I S H S M Es

TAXATION GAP

The promise of closing the taxation gap between the self-employed and the PAYE worker this year didn’t happen but are we really surprised? The cost of full equity between self-employed and PAYE workers would have been just €37 million. But this has been ignored in favour of increased spending in the public sector. So much for pay equity.

INCREASED VAT RATE

While the 9% VAT rate was under incessant attack, it has delivered for thousands of workers and small hospitality businesses and for the Exchequer. The increased VAT rate is likely to impact more on the profitability of businesses rather than prices charged to customers. The effects upon employers, employees and the Exchequer of the return to the 13.5% remain to be seen.

POSITIVES

More positive measures include the €10 million extra for the IDA’s Regional Property Programme along

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with €2.75 million to Enterprise Ireland for regional innovation and technology clusters. The €300m for the Future Growth Loan scheme is hopeful news for the SME sector and agribusiness in Ireland, which will be funded through the Department of Enterprise, Business and Innovation.

NOT MUCH HELP TO START-UPS

But what about start-ups? The extension of the StartUp Relief is only available to businesses who reach a stage where they are profitable. This isn’t much help to a new small business.

Proposed regulation of peer-to peer (P2P) lending is a more progressive aspect of the Budget. Awareness and investment levels need to be raised so that P2P funding can become a credible alternative to bank funding for Irish SMEs. Emulating the successful UK example of promoting the P2P lending industry by implementing a cash investment from the Strategic Banking Corporation of Ireland (SBCI) would increase awareness of this funding stream and encourage savers to invest.

And then there is the unmentioned. Entrepreneurial reliefs such as the Employment and Investment Incentive Scheme (EIIS), the Research and Development (R&D) tax credit and the Knowledge Development Box were left largely unmentioned.

No changes were announced in relation to the entrepreneurial relief from capital gains tax. Maybe next year...

While civil servants can look forward to sturdy pensions when they retire, employees of SMEs aren’t so fortunate; neither are small business owners.

You can read more about ISME’s Budget response here.

CONTENTS

ISME Annual Conference

Think 25

- a day to look to the future Don’t miss the 2018 ISME Annual Conference on Wednesday, November 21st, in the Citywest Hotel, Dublin. From November 2018, the association will be marking 25 years of service to the SME sector and this has inspired the theme, Think 25 – Looking ahead for Irish Business.

Neil McDonnell, CEO, ISME commented: “ISME is 25 years old this year. We’ve put a pretty eventful quarter-century behind us. We’re going to cast a nostalgic eye back to the Ireland of 1993 at our Annual Conference. But the main theme on the day will be looking ahead at the next quarter century. With all that is happening around us, we think the next 25 years will be the most eventful since we joined the EEC in 1973. Our relations with Northern Ireland, Britain, the EU, the USA, Asia and Africa will be profoundly changed. Brexit, an EU where we will be the only common-law member, a disengaging USA, and a more muscular China and India will change the way Ireland interacts with the world. It will be a great place to be an SME. Join us in November to see why.”

There are a few changes to the conference format this year, with two distinct parts to the day:

Economist Jim Power will be a panellist in The Great Debate at the end of the Morning Session.

Paul Healy, CEO of Skillnet Ireland will present the Breakout Session: The Future of Work & Learning.

The guest of honour is Minister Heather Humphries TD who will open the conference. Conall Ó Mórain will chair this action-packed day which includes the keynote speech by Alison Cowzer, Director, East Coast Bakehouse (former ‘Dragon’ on RTÉ’s Dragon’s Den).Professor of Computing in DCU Alan Smeaton will give the theme address which will focus on technology and business over the next 25 years.

Other highlights include: an interview with David Cox, CEO of Fragrances of Ireland, an ISME member since 1993, who will chat about his business over the last 25 years and his plans for the next; John Popolizio CEO, Sovy will look at simplifying compliance for SMEs; and the presentation of the Sean Hannick SME Award.

The Great Debate will close the morning session with panellists Jess Kelly, Newstalk’s technology expert; economist Jim Power; Dr Kay Haywood, Queens University; Tom Lyons, Executive Editor, The Sunday Business Post; and Christopher Paye, General Manager, Jobs.ie. The panel will discuss what we have learned from the last 25 years that can be used to inspire business in the future.

Pictured (l-r): Elizabeth Fallon, The Sunday Business Post; Neil McDonnell, ISME; Conference Sponsor, John Popolizio, Sovy; and Keynote Speaker, Alison Cowzer, East Coast Bakehouse.

CONTENTS

THE AFTERNOON – BREAKOUT SESSIONS

From 2pm we will be running six Breakout Sessions designed to provide insights and information about the subject areas, each 30 minutes in duration.

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THE MORNING – MAINSTAGE

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ISME Annual Conference 2.00 – 2.30pm

PAYE Modernisation David Hanlon, PAYE Modernisation Project

Smart Working – How it is Changing Business Treasa Doran, Vodafone Ireland & Vanessa Tierney, Abodoo.com

2.30 – 3.00pm

PAYE Modernisation David Hanlon, PAYE Modernisation Project

The Future of Work & Learning Paul Healy, Skillnet Ireland

3.00 –3.30pm

Business after Brexit Moderator: Neil McDonnell, ISME. Panellists: Dr Katy Haywood, Queens University; Grant Gilmore, InterTrade Ireland; and Jonathan McMillan, Enterprise Ireland.

Growing your Business with Tendering Ross McCarthy, Keystone Procurement

Breakout Session schedule.

EXHIBITION AREA & NETWORKING

Throughout the day – at breakfast, midmorning break and lunch – delegates can enjoy lots of opportunities to: •

visit the exhibition area of over 50 stands across a range of industries;

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network with fellow business people; and,

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do business.

The conference sponsor is Sovy – compliance software for SMEs, and the media partner for the second year running is The Sunday Business Post.

T H E B U S I N E S S O F I R I S H S M Es

There are several ticket options for delegates: a full day ticket for all the events or individual tickets for the Morning Session, or for the Breakout Sessions, starting from €40 p.p.

Click here to book now.

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CONTENTS

ISME at work for you

In its five-yearly review of the Joint Labour Committee (JLC) system, the Labour Court has recommended that the same sectors remain covered for the next five years. These sectors include agriculture, contract cleaning, catering, hairdressing, hotels, retail grocery and security.

While all of these JLCs will remain, the two regional catering JLCs are to be amalgamated into one national body.

ISME stands by its previous comments and submission made to the Labour Court regarding JLCs. The Association in its April submission to the Court, called for the abolition of the JLC/ERO system. This call was made in line with section 40 of the 1946 Industrial Relations Act, which allows the Minister or any worker or employer group to apply for the abolition of any JLC. The Association is disappointed with the Labour Court decision, but we would like to assure our members that we will continue to work with them on the issue of JLCs/EROs. For more information contact neil@isme.ie.

TEAMMATE 360 Following the development and testing of the online application for TeamMate 360, the pilot stage of this project is now underway. There are still some places left for any organisation/manager that wishes to have feedback on their skills in the management of remote teams or employees.

This development opportunity allows managers/team leaders to get feedback from their colleagues on their remote management skills and they will also receive development suggestions where appropriate.

The Re-Innovate Project, which started in January of this year, has already developed the learning methodology, curriculum and accreditation for the course and is now involved in the development of the course modules. The course will be ready for piloting in 2019, after which the accredited course will be available to employees of SMEs to help develop their innovation capabilities through the use of practice-based research and problem-solving skills.

For more information contact Sheila Flannery, Erasmus Project Manager on sheila@isme.ie or 01 662 2755.

DATES FOR YOUR DIARY Staff Retention for SMEs Friday, November 16th Dublin Cold Calling & Appointment Making Thursday, November 22nd Dublin Team Management & Leadership for SMEs Monday, November 26th Cork Growing Your Business: Closing 2018, Sales Planning for 2019 Wednesday, November 28th Dublin Employment Law Thursday, November 29th Dublin Team Management & Leadership for SMEs Friday, November 30th Dublin Customer Service & Complaint Handling Wednesday, December 5th Dublin Customer Focused Sales Wednesday, December 5th Dublin

IMPORTANCE OF UPSKILLING

MONAGHAN SEMINAR ON PAYE MODERNISATION

Adam Weatherley, Learning and Development Manager, ISME, attended the launch of #skillstoadvance where Minister for Education and Skills, Richard Bruton, spoke about the importance of upskilling and training for SMEs.

ISME CEO, Neil McDonnell, attended a PAYE Modernisation Information Seminar hosted by specialist consultancy Fuel – High Performance IT in Monaghan in September. At the event, speakers addressed local SMEs’ questions on PAYE modernisation.

CONTENTS

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JLCS RETAINED FOR ALL SECTORS

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The b Insight

Could your business live with a 20% sterling swing?

As the Brexit negotiations continue to stumble along, the risk of a ‘No Deal’ outcome is growing higher with each passing week, writes Paul Reilly, Head of Clear Treasury Ireland.

HOW MUCH DID STERLING FALL AGAINST THE EURO?

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From announcement of referendum date to referendum result – 8%

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4 months after referendum results – 19%

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48 hours after referendum - 8%.

Volatility increases in the build-up to, as well as during and immediately after, key events. However, the material selling of sterling happened after the referendum outcome, too late for many SMEs. MARKET AND BANK REACTIONS

T H E B U S I N E S S O F I R I S H S M Es

The invocation of Article 50 will mean that the UK will leave the EU on March 30th, 2019 and so far, both sides of the negotiating table have been unable to agree on the key areas.

There has been much speculation as to what the initial impact on trade will look like, should a no-deal scenario materialise. Due to the nature of Foreign Exchange (FX) markets, one of the first impacts will be felt by the UK’s currency. Citing a recent article

by Bloomberg, some commentators are suggesting sterling could fall by another 5-10% as a result, with some more extreme predictions suggesting up to 20% (Note: sterling has fallen by over 30% since ex-Prime Minister David Cameron announced the holding of the Brexit referendum back in February 2016). In one of the more extreme scenarios there is even talk that the banking system within Europe could be disrupted. For example, will SEPA payments be available to/from the UK? So Irish SMEs should be nervous and should get their currency plans in place, but what should they be mindful of? Here in Clear Treasury, we are assessing the event risk of the coming months in the context of what occurred in the build-up to the actual referendum held in June 2016. Back then, we observed a number of interesting developments in currency markets that Irish SMEs should be aware of and from which lessons should be lear

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As we got closer to the referendum date, market volatility increased. As a result, banks got nervous and, in certain cases, refused to quote for relatively straightforward hedging products. We also observed that they decided to take advantage of the unique scenario and significantly widen their FX charges to SME clients. In some cases, the FX risk became unhedgeable if left too late.

HOW DO COMPANIES RESPOND?

In our experience from June 2016, too many companies left their currency decision until much too late and were, therefore, forced into a rushed decision at far more negative EURGBP rates than initially budgeted for.

Others decided to do nothing and were left at the full mercy of market movements over the massive event that was the referendum. This had a major impact on their gross margins for a sustained period.

LESSONS LEARNT

On a simple level, do not leave the currency decision until it’s too late. Get expert advice to help identify all the relevant FX risks to your business and manage them as effectively as possible over the pending, choppy few months.

For more information on currency contact Paul Reilly, Head of Clear Treasury Ireland on paul.reilly@ cleartreasury.co.uk or Rebecca Hooton, Head of Partnerships on rebecca.hooton@cleartreasury. co.uk Clear Treasury is an ISME ADVANTAGE Programme partner offering SME Currency Risk Management to ISME Members, find out more here.

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Learning & Development Category

Grow your business by developing management through training

There are some serious threats to the sustainability of our current economic growth, writes Adam Weatherley, Learning & Development Manager, ISME. To effectively address them, improved management quality and increased training in SMEs are vital. small number of international corporations and Ireland’s consequent dependence on them is a big challenge. A good start to tackling this risk would be to encourage a better take-up of Management Development Programmes. Ireland, compared to other EU countries, is in the lower percentile when it comes to embracing management development training and continuous lifelong learning.

As many a headline has said, the growth in the Irish economy is a welcome change to the long recession we all endured in recent years. We can now hopefully enjoy a good period of growth and prosperity.

However, a recent publication from the National Competitiveness Council (NCC) has highlighted some very real issues that threaten the sustainability of the growth we are experiencing, namely the economy’s heavy dependence on the performance of a narrow number of firms and economic sectors.

Some key statistics published by the NCC illustrate the stark reality: •

10% of companies account for 87% of value-add manufacturing and 94% of services;

•

33% of exports are accounted for by just five companies; and,

•

39% of corporation tax is paid by the top 10 companies.

FUTURE SUSTAINABILITY

These statistics speak for themselves. However, the NCC did state that Ireland also has a great opportunity, given the capability to increase productivity within the Irish SME sector if some key actions are taken now. It is vital that a strong indigenous sector is developed and nurtured, and that SMEs in particular, can play an increasingly important role in the future sustainability of the Irish economy.

Reducing the risk presented by such a high concentration of key economic activity within a

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BETTER MANAGEMENT AND EMPLOYEE DEVELOPMENT

Better management and the development of employees would significantly address issues such as staff retention. In a transient and fickle employment market, retaining employees for longer would provide a stronger business platform for continuous growth.

Providing staff with continuous lifelong learning opportunities in the technical areas of business such as financial management, IT capabilities, marketing capabilities, human resources and sales, would be a positive step forward in keeping staffing levels healthy, maintaining the right strategic direction and ensuring the necessary robustness required to tackle uncertainty ahead.

Ireland’s economic productivity is strong on the surface, but the deeper reality of the trends outlined above is concerning. Research from the Department of Finance shows that, for many firms, particularly within the SME sector, productivity growth is actually stagnant or falling. Therefore, it is clear that a resilient indigenous sector is the key to diluting any threats Ireland could face in the not-too-distant future.

ISME Skillnet offers a variety of business management courses, including: •

Diploma in Business Management with Dublin Business School;

•

Courses in management marketing; and,

•

Certified Advance Business Programme QQI Level 7 with Griffith College.

skills,

sales

and

To find out more, click here or contact adam@isme.ie.

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T H E B U S I N E S S O F I R I S H S M Es

Adam Weatherley, Learning & Development Manager, ISME.

Improving management quality and increasing training in smaller enterprises would assist them develop new products, new markets and new sectors.

In turn, it would be an encouraging start in creating an SME sector that is dynamic, innovative, resilient and adaptable.

bISME

THE

Insurance focus

Be protected in business

If you are a Company Director or Officer, you have significant financial exposures under changes brought about by the Companies Act 2014, writes David Spollen, Glennon Insurance. Do you have concerns about these exposures or are you unaware of how they might arise, then please read on.

The 2014 Companies Act changed the position of directors, and specifically the sanctions and penalties that are now applicable. Directors often believe that any financial loss or penalties arising will be dealt with by their company. However, under the Act, companies are restricted in the circumstances in which they can indemnify directors.

appropriate legal defence. This is a critical part of the protection and provides important peace of mind both financially and in relation to preserving reputation.

Directors cannot be indemnified by their company for negligence, default or breach of duty or trust.

And these would represent most of the actions that are likely to be taken against a director. Other areas where a director can have liability are claims arising from health and safety matters, pollution and environmental risks. In addition, a director could be sued by a competitor for defamation.

The policy is based on a pre-selected limit of indemnity that applies to all insured directors. This has to be set at a level to accommodate possible multiple claims against directors. Apart from legal costs, the policy also covers investigation and preinvestigation costs. Civil fines and penalties are also insured, where allowed by law. The policy also provides for an element of PR costs to help deal with any reputational issues that the insured director may have arising from an allegation of negligence, breach of duty etc.

AS A DIRECTOR, WHAT IS YOUR EXPOSURE?

BE AWARE

This now means, to all intents and purposes, that any liability arising for a director is against their personal assets. This represents a major financial exposure both in respect of initial legal costs to investigate and defend a matter and any subsequent legal award or fine. You are still seriously exposed whether you are a director of a small or large company.

Many directors are unaware of the specific legal and financial exposures they have and the full extent to which their personal assets are at risk. Directors of small private companies are just as susceptible to legal actions as are directors of larger companies.

Directors and Officers Liability Insurance can provide a high level of protection and, most importantly, peace of mind.

IS THERE A SOLUTION OR REMEDY FOR THIS?

T H E B U S I N E S S O F I R I S H S M Es

Directors and Officers Liability Insurance has evolved over time to deal with these exposures. Its cost relative to the protection provided represents very good value for money. Notwithstanding that the policy is essentially protecting the director’s personal assets, the annual premium can still be paid by the company.

HOW DOES A POLICY WORK?

Once an action is commenced against the insured director, the insurer steps in and provides the

CONCERNED?

Contact Glennon Insurance, if you would like to discuss this area in more detail. We will be delighted to assist and provide an indication of the cost of cover to meet with your requirements on isme@glennons. ie or tel: 01-707 5800.

As ADVANTAGE Affinity partners, Glennon Insurance offers Directors and Officers Liability Insurance to ISME Members with a minimum of 10% discount, personal advice at source and policy protection. Find out more here.

Directors cannot be indemnified by their company for negligence, default or breach of duty or trust.

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Lovely hurling!

bISME

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Another side of - TQS Integration

Up the Déise! TQS sees its sponsorship of Waterford GAA as a game-changing opportunity.

Why did TQS Integration decide to sponsor Waterford GAA?

coffee discussions are generally a blow-by-blow replay of the weekend games.

As a Waterford woman, a life-long supporter of GAA in Waterford, and director of an international company that has its headquarters in beautiful Lismore – why not? As a company, we seek gamechanging opportunities, this one came along, and we grabbed it with both hands. We are delighted to be part of this winning team and wish Waterford GAA every success.

Do you have any special memories of Waterford GAA over the last few years?

Do your TQS colleagues play GAA themselves?

Absolutely, but not all in Waterford! Some have not only played in Ireland, but in Germany, the UK, New York, Boston, Chicago and in Saudi Arabia. Some staff are new to the game but are starting to embrace the excitement and thrill of both hurling and football.

Do TQS staff regularly attend the matches?

Yes, they are regular match-goers with a keen interest in the GAA. We have frequent draws for match tickets for both experienced supporters and ‘newbies’ to the game to allow them to embrace the experience.

T H E B U S I N E S S O F I R I S H S M Es

What local club do you all support?

The local clubs are too many to mention – basically we have staff across the county. Personally, I was delighted to see Ballinameela win the Junior County Final in hurling and hope to continue to follow them through Munster and all the way to Croke park. I was bitterly disappointed for Abbeyside, Dungarvan but fully expect them to bounce back next year.

What does hurling mean to the people of Waterford?

Everything! In Waterford it’s not life or death, it’s much more serious than that! Monday’s morning

A series that highlights the lives of ISME members and personnel beyond the workplace. In this edition, The bISME talks to Máire Quilty, Director, TQS Integration about her company’s commitment to GAA in Co. Waterford.

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There are so many to choose from, like beating Tipperary in the Senior Hurling Championship (SHC) Semis in 2008, reaching the All-Ireland and Paul Flynn’s screamer of a goal against Cork in Semple Stadium. Seeing Waterford Senior Footballers reach the qualifiers of the Senior Football Championship (SFC) this year was a great achievement, especially during our first year as sponsors.

What has been the benefit of this sponsorship to your business?

It has had a very positive impact on the business, both from a customer and employee point of view.

Our logo has given us incredible exposure across the globe – I still get calls from people around the world telling me that they saw our logo on the jersey. It has raised our profile enormously.

Is TQS Integration involved in other community activity?

We try to get as involved as possible in all community activity – in charity events and trips, at local schools with scholarships/student awards and in the Young Scientist competition. The elderly in the community are a high priority as we are all heading that direction someday. We are always willing to lend a hand with any local events by sponsoring, attending or helping in some way.

Do you see a parallel between sport and businesses?

Yes, we are a close-knit team with a common goal, delivering a product. Being associated with sports constantly reminds us that if you have the right leadership, culture, commitment and communication you can achieve anything.

What do you think is in store for Waterford GAA in 2019?

We will see a winning team from day one! As the 60-year mark approaches, we are now ready and committed to winning the Liam McCarthy Cup.

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