New research shows that Irish SMEs are embracing more sustainable business models despite setbacks due to the pandemic.
According to the latest global EY SME survey, some 82 per cent of Irish SME's have been negatively impacted by the pandemic.
However, 54 per cent have said they plan to change business models in response to new market conditions.
The survey by EY looked at the impact the pandemic has had on businesses, surveying 5,600 SMEs across 16 markets, 310 of which were in Ireland.
In Ireland, SMEs account for 99 per cent of active businesses and employ some 68 per cent of the private sector workforce.
Despite the pandemic, 13 per cent of SMEs reported experiencing a positive economic impact while a further 21 per cent said they experienced just a slight negative impact on their business.
Furthermore, 45 per cent of businesses said there was no change in revenue, with 60 per cent claiming there was no change to staff levels or else an increase.
Helena O’Dwyer, head of strategy, EY-Parthenon commented: “The pandemic uncovered levels of digital exposure that many didn’t realise.
“Organisations with sophisticated digital platforms and systems were able to change quickly with less disruption – both in terms of flipping to remote working with no notice, but also in how they served their customers and their ability to continue to generate revenue.
“Sophisticated technology, data and systems are what help businesses to separate from the pack,” she added.
“Today’s high-growth businesses are firmly focused on digital customer experience, CRM, supply chain optimisation, projects that rely heavily on AI and robotic process automation- all of which bring more agility and underpin business models that will sustain growth.”
