The Department for Enterprise offered over £6.7million of financial support to local businesses through the Financial Assistance Scheme in the 2020/21 financial year, separate to any COVID-19 support, which helped to create 284 jobs in the Isle of Man.
The Enterprise Act 2008 Annual Report for 2020/2021 (Enterprise Act Annual Report) has now been published on the Register of Business ahead of March’s Tynwald sitting and details key results of the funding, training and advisory support schemes which are administered by the Department, focusing specifically on the Financial Assistance Scheme.
In addition to this, the report outlines key statistics from emergency business support schemes administered by the Department which provided vital financial support to businesses during difficult trading periods throughout the ongoing COVID-19 pandemic.
Dr Alex Allinson MHK, Minister for Enterprise, commented:
‘The key purpose of the Department’s Financial Assistance Scheme has always been to create jobs and grow the economy. This year’s figures are a demonstration of that ethos in practice, creating over 200 new jobs, which provide economic benefit to the Island, alongside protecting over 1,500 existing roles, each of which contribute to maintaining our strong and diverse economy.
‘Whilst an investment of over £6.7million is undoubtedly a large figure, the report indicates that the return on investment for this funding will be paid back to the Island within three years, notwithstanding the additional private expenditure which is contributed by businesses.
‘Combined, these contributions provide further investment into our Island and help to establish long term strategic planning for the Isle of Man’s future.’
Financial Assistance Scheme
In the last financial year, the Financial Assistance Scheme (and associated grants) committed over £6.7million towards starting and growing businesses in the Isle of Man in the upcoming years. This funding created 284 jobs in the Island, which have been valued to provide the Island with an exchequer benefit of over £2.3million per annum.
In addition to this, supporting these businesses to invest in expanding and enhancing their operations means the funding protects 1,965 jobs in the Island, which when combined contribute over £26million in protected tax contributions each year.
Furthermore, the support provided through the Financial Assistance Scheme has helped to stimulate over £12.7million of private investment which has been contributed back into the local economy.
COVID-19 Pandemic Response
The 2020/21 Enterprise Act Annual Report also outlines the financial support which has been administered by the Department for Enterprise as part of the Isle of Man’s COVID-19 response.
From March 2020 to November 2021 the Department for Enterprise administered over £26.9million of financial assistance through COVID-19 business support measures spread across 15 support schemes and funding rounds.
During this time, the Enterprise Support team have processed over 10,000 COVID-19 related applications and made over 10,500 payments throughout the pandemic.
Additional Economic Stimulus Schemes
In addition to this in the 2020/21 Financial Year, the Department for Enterprise’s Micro Business Grant Scheme trained 211 individuals through their training programme, administering grants to 122 local entrepreneurs to a value of over £650,000.
The Minister concluded:
‘Ensuring businesses which choose to set up, expand or relocate to the Island are supported and encouraged to continue to create jobs and invest in our Island helps us to remain a secure, vibrant and sustainable destination where businesses thrive and there are a range of opportunities available for all residents.’
Each year the Enterprise Act Annual Report details the provision of assistance which has been provided to businesses through the Financial Assistance Scheme and also includes wider statistics on the other financial support schemes the Department administers.