Access to skilled staff, high energy and transport costs, and access to finance are the biggest risks identified by Irish SMEs in a survey by the Strategic Banking Corporation of Ireland (SBCI), the State’s promotional financial institution.
The SBCI has channelled over €4 billion in funding to over 60,000 Irish SMEs to date.
The survey also revealed a strong preference amongst Irish SMEs for green investments that reduce energy costs, such as solar panels and energy-efficient lighting.
It revealed stark changes in Irish SME trading patterns with Britain post-Brexit, with 61 per cent of respondent SMEs saying they have reduced or even completely stopped using suppliers based in Britain – in contrast, 34 per cent have reduced or stopped selling to Britain.
59 per cent of respondents say getting skilled workers is one of the biggest risks to their business right now. 48 per cent cite transport and energy costs as a risk to their business, while 44 per cent say access to finance is a significant risk
Key findings – preferences for green investments:
Of the SMEs that said they are planning a green investment over the next three years: 59 per cent said they will invest in solar panels, 46 per cent say they plan to invest in lighting improvements that are more energy-efficient and 42 per cent say they will invest in electric vehicles.
Reducing electricity and heating costs is the number one priority for SMEs in making green investments, with 29 per cent citing this reason.
A total of 26 per cent say their green investments are driven by a desire to play their part in reducing emissions; 16 per cent say that they want to be more sustainable; 13 per cent say their aim in making these investments is to improve their brand reputation and build customer loyalty.
Key findings – Brexit impact on Irish SME trading patterns:
A total of 61 per cent of respondents SMEs have reduced or ceased using British-based suppliers (48 per cent have reduced while 13 per cent have stopped)
34 per cent have reduced or ceased selling to customers in Britain (26 per cent reduced, 8 per cent stopped)
19 per cent have increased their use of suppliers in other EU countries post-Brexit, while an additional 19 per cent have started using EU-based suppliers for the first time.
Only 24 per cent of Irish SMEs say that Brexit has had no impact on their relationship with British suppliers or customers.
June Butler, chief executive of the SBCI, said: “Our survey has given us an insightful snapshot into the key risks that Irish SMEs are facing and their attitudes to investing in green technology and doing business in a more sustainable way.
"We’ve developed tailored funding programmes to help SMEs invest in addressing the big risks they face and to give them a platform for growing, creating jobs and becoming more sustainable.
"We’ll continue to work closely with SMEs to give them even better financing options on their journey.”
