Fifty community-based projects will receive financial support totalling €5.2 million, the Tánaiste, Ms Harney, announced today.
The finances will be made available through an initiative administered by Enterprise Ireland and Shannon Development, FÁS, the Local Authorities and County and City Enterprise Boards.
"The support, depending on each project stage of development, ranges from feasibility and management development to capital investment in new or expanding community enterprise centres. The balance of the €8 million budget for this initiative will be allocated following a second call for proposals," Ms Harney said.
The Tánaiste said: "the new funding will be used to provide infrastructural facilities to support the establishment and expansion of micro enterprises, with local community participation".
Some 81 proposals were recieved, with a total value of €14.4 million.
Ms Harney said the successful applicants were able to show the scope and capability to successfully manage such facilities. They also demonstrated effective fund raising capabilities, the ability to identify suitable projects and ensure efficient management of a viable centre.
The Irish Small and Medium Enterprises Association (ISME) welcomed the news, but questioned the policy of letting Enterprise Ireland administer the project.
Mr Mark Fielding, the chief executive ISME, said that Enterprise Ireland’s record in supporting local indigenous business is poor at best and non-existent in most cases.
He also outlined that their administration costs are excessive, as evidenced by their most recent Annual Report which confirmed that every €1 the Government gives to Irish business via Enterprise Ireland costs €1.31 to deliver.
He called on the Tánaiste to ensure that all monies allocated were distributed directly to the benefit of each initiative and not "consumed" by bureaucratic administrative costs.