SMEs join forces to make business work

ONE OF the biggest difficulties facing Irish small and medium enterprises (SMEs) today is the internationalisation of markets and foreign competition on the home front. However, a new approach to encouraging business between European SMEs operating in the high technology sector, is offering new openings to Irish companies.

Called the MET, the European High Technology Market, Irish businesses can now forge co operation between themselves and some of the major European industrial groups as well as other European SMEs.

Around 99 per cent of all enterprises in Europe are SMEs, having less than 500 employees and being responsible for 66 per cent of employment and 65 per cent of turnover in the European Union.

The MET is specifically designed to cater for the needs of these companies and is driven by the partnership requirements of industrial groups interested in sourcing technological expertise.

Organised by the Richlieu Committee, the French association of high technology small and medium companies, the MET covers a wide range of high technology sectors including aerospace, telecommunications, transport, robotics and micro electronics. Some of the larger groups involved include Siemens, Rolls Royce and Aerospatiale of France.

Recently a delegation of 23 Irish SMEs travelled to the MET 1996 event in Strasbourg under the auspices of Forbairt's Technology, Transfer and Partnership programme, which offers Irish companies direct access to key international technology related networks.

Supported by the European Regional Development Fund, the Forbairt programme aims to assist Irish companies to put in place partnerships with overseas companies to develop new products and processes through the introduction of new technology.

Manager of Forbairt's Technology, Transfer and Partnership Programme, Mr Ray McSherry, said that, as the first event of its kind to be held in Europe, the MET was a highly efficient mechanism for Irish companies to gain access to large European companies.

"Forming international partnership can be a very strategic step for Irish companies with longer term benefits in acquiring technological know how which can lead to significant growth in sales and profitability," said Mr McSherry.

According to Mr Jean Luc Laydevant, MET organiser in Ireland, key executives from large companies were surprised to discover the potential offered by Ireland in terms of technological capability.

"The event was a great step ahead for Irish SMEs and I believe the larger groups which took part will be more inclined to look to Ireland for their future needs," said Mr Laydevant.

Managing director of Space Technology Ireland, Prof Susan McKenna Lawlor, based at St Patrick's College Maynooth, said her company had not only won a contract at MET 1996, but a number of others companies were interested in proceeding further with negotiations.

Space Technology Ireland produces hardware and software for space applications and provides a consultancy service for the space industry.

"The expertise and technologies developed for space applications are an important company resource. Space technology now pins off the know how from our ore space activities through building alliances with companies operating in other sectors, particularly in electronic systems and design consultancy," said Prof McKenna Lawlor.

Mr Gerry Jones, managing director of International Test Technologies (ITT), said that as a result of the MET event in Strasbourg earlier this month, up to 14 large European companies expressed an interest in his company. ITT designs and manufactures test equipment for testing microprocessor boards at its main plant in Falcarragh, Co Donegal.

"Six of those [14] have definite business potential," said Mr Jones. "As a concept, the event basically encouraged match making between SMEs and the larger multinationals. In many cases this is difficult to do in ordinary circumstances," he said.