Enterprise Ireland is to change the way it invests its 160 million annual budget in start-up companies and small and medium enterprises.
The organisation's chief executive Mr Dan Flinter said the era of employment grants was over and in future it would invest its money via preference and ordinary shares.
The organisation will also invest more generously in companies located in the border, midland and western (BMW) regions.
Mr Flinter said the organisation was prepared to take risks when investing in start-up companies and once companies did what was commercial, employment would follow. He said investments made by Enterprise Ireland would not act as disincentives to recruitment.
The organisation is offering five different types of financial support: exploring new opportunities; high potential start-ups; existing company expansion; building international competitiveness; and research and development.
Each scheme has its own eligibility rules and contact points, which are available from Enterprise Ireland. Under the "exploring new opportunities" scheme, companies must employ 10-250 people.
To qualify for the "existing company expansion" scheme, the company must be an expanding manufacturing or internationally traded services firm employing 10 or more people.
The new investment policy will involve three layers of regional funding, with the highest rates going to enterprises in the BMW region, followed by the south-east, south-west and mid-west regions, with Dublin and the mid-east getting the lowest rates.
Mr Flinter said a new 10 million international competitiveness fund announced yesterday was particularly needed in the present climate. He said it would address broad productivity issues and cover activities such as capital investment in new machinery/automation, operations improvements, management and staff training and employment of a key person.
The creation of the 10 million competitiveness fund was welcomed yesterday by the Tánaiste, Ms Harney.
ISME, the small business lobby group, also welcomed this part of the Enterprise Ireland announcement.
