According to a survey by the Strategic Banking Corporation of Ireland (SBCI), the primary risks identified by Irish small and medium-sized enterprises (SMEs) include access to skilled labor, high energy and transport costs, and limited access to finance. The SBCI has so far provided over €4 billion in funding to more than 60,000 Irish SMEs.
The survey also highlighted a strong inclination among Irish SMEs towards green investments aimed at reducing energy costs, such as solar panels and energy-efficient lighting. Significant shifts in trading patterns with Britain have emerged post-Brexit, with 61% of participating SMEs reporting a reduction or complete cessation of business with British suppliers, while 34% have cut back or halted sales to British customers.
Currently, 59% of respondents view the acquisition of skilled workers as a major risk to their businesses, while 48% point to transport and energy expenses, and 44% cite access to finance as a significant concern.
Key findings on green investment preferences: Among the SMEs planning green investments in the next three years, 59% intend to invest in solar panels, 46% are looking to improve their lighting efficiency, and 42% plan to purchase electric vehicles. Reducing electricity and heating costs is the top priority for 29% of these businesses. Additionally, 26% are motivated by the desire to contribute to emission reductions, 16% aim to enhance sustainability, and 13% hope to improve their brand reputation and customer loyalty through these investments.
Key findings on Brexit's impact on trading patterns: The survey found that 61% of SMEs have reduced or stopped using suppliers from Britain (48% have reduced their usage, while 13% have ceased entirely). Furthermore, 34% have cut back or stopped selling to British customers (26% reduced their sales, 8% halted them). In contrast, 19% have increased their reliance on suppliers from other EU countries post-Brexit, and another 19% have begun sourcing from EU suppliers for the first time. Only 24% of Irish SMEs reported that Brexit has not affected their relationships with British suppliers or customers.
June Butler, the CEO of SBCI, stated: “Our survey provides valuable insights into the key challenges facing Irish SMEs and their perspectives on investing in green technologies and sustainable business practices. We have created tailored funding programs to assist SMEs in addressing these critical risks, providing them with a foundation for growth, job creation, and sustainability. We will continue to collaborate closely with SMEs to enhance their financing options along their journey.”
Source: Breaking News