LeanBPI research reveals almost 60% of small enterprise owners worry about impact of tariffs

LeanBPI, the Irish digital growth consultancy for SMEs and microenterprises has announces new research which shows that 59% of small businesses are worried about the impact of tariffs on their business. LeanBPI is now urging small business owners to utilise digital grants which can help to protect them from external economic threats and competition from larger enterprises.

The research of 100 business owners in Ireland, running companies with 20 employees or fewer, was carried out by Censuswide on behalf of LeanBPI. It uncovers concerns among small enterprise owners about external threats to their businesses, along with issues regarding the adoption of digital technologies and the acquisition and retention of skilled staff.

LeanBPI’s research found that 67% of small business owners say digital adoption is essential for the survival of their business. However, they are encountering significant issues in attracting and retaining top tier digital talent, as they compete with much larger companies for the same talent pool. Almost three-quarters (71%) of small business owners reported that they struggle to retain talent due to competition from larger companies. As a result, the same proportion report a clear digital skills gap in their sector.

Despite the competition from larger companies boasting bigger budgets and salaries, 32% of small business owners in Ireland believe small enterprises have an advantage over larger businesses as they are more agile and can adapt to market changes faster. However, LeanBPI’s research suggests that this agility is not being unleashed to its full potential as small businesses appear to lag on digital adoption.

When assessing their own knowledge of digital technologies, 46% of small business owners report they feel out of their depth. With this in mind, 48% report that managing digital transformation is stressful and 43% admit that they lack the confidence to drive digital change within their organisation.

Exacerbating the personal challenges they face, one in four small business owners said they face pushback from their teams on embracing new technologies. This is unsurprising, however, given that almost one in five of those surveyed admit that they are not providing sufficient training for their team on the use of digital technologies.

John O’Shanahan, founder and managing director, LeanBPI, said: “Given their size, small businesses are naturally more vulnerable when there are economic shocks, which the proposed US tariffs would undoubtedly cause. While there will always be external challenges, it’s how small businesses adapt to them that will determine their survival and success. For now, business owners are rightly concerned about tariffs, but inevitably, more challenges await – along with plenty of opportunities. The difference will be in agility and how businesses use technology to respond smartly and with speed.

“There are a number of digital grants that all small business owners should be taking advantage of. Businesses should get in touch with their Local Enterprise Office (LEO) to find out what they are entitled to and how to get it. This is the doorway to a more dynamic enterprise that can compete with confidence and resilience.”

See more stories here.