LeanBPI research reveals more than a quarter of small businesses struggling with digitalisation

LeanBPI, the Irish digital growth consultancy for SMEs and microenterprises, today announces new research which shows that more than a quarter (26%) of businesses with fewer than 50 employees rank their level of digitalisation as low. This equates to almost 90,000 businesses in Ireland* that are struggling to digitise their operations. Amongst microenteprises – businesses with nine or fewer employees – 30% ranked their digitalisation as low.

LeanBPI carried out the research as part of its Digital Readiness Assessment, a digital fitness check for small businesses launched in May and distributed to businesses in partnership with the Local Enterprise Office Network. The assessment helps small enterprises to understand their current capabilities and benchmark them against others. It produces a readiness profile, from Pioneer to Avoider, and advises the business on next steps accordingly.

As Budget 2025 approaches, LeanBPI’s research suggests a strong demand for additional digital support among small enterprises, as well as increased awareness of the supports already available. Despite 96% of respondents expressing a willingness to learn and adopt digital tools and systems, more than one-in-10 (12%) of small businesses acknowledge having no experience using digital technology to enhance their operations. Additionally, 15% have not yet implemented digital policies, and nearly a third (31%) are only beginning to develop these policies.

Recently, the Government launched the Digital for Business initiative through the Local Enterprise Offices, providing digital consultancy services that will help businesses with 50 employees and fewer to optimise their digital systems, streamline operations, reduce paperwork, improve business results, and enhance staff retention. It also introduced Grow Digital vouchers, which enable businesses of the same size to avail of grants of up to €5,000 for software subscriptions, training and configuration.

John O’Shanahan, managing director, LeanBPI, said: “We often talk about business being digital, but it’s important to remember that small and micro enterprises account for 98.7% of businesses in Ireland and many of them are yet to realise the benefits of digitalisation.

“Our research shows a near-universal desire among small businesses to capitalise on the promise of digital, but they need guidance and support. Digital for Business, along with the Grow Digital vouchers, will therefore play a vital role in helping small businesses to become more efficient and streamlined operations. In doing so, they will support the growth of our economy, too.”

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