New SumUp report shows Irish SMEs view digital transformation as vital for growth

Running a small business in Ireland is no easy task, however, the lingering effects of the recent recession are now starting to shrink and 2024 is seeing inflation drop to its lowest level in 33 months and is expected to keep lowering over the next year1.

With this in mind, SumUp surveyed 250 small Irish business owners and decision makers within small businesses to see how confident they feel about the state of the current Irish market, and if their current confidence levels extend to future expectations.

Confidence levels over the next 12 months:

Overall, small business owners and decision makers in Ireland are feeling confident about their business over the next year, especially as the Irish economy recovers from the technical recession it entered in 2023.

Two in five respondents (40%) said that they were feeling very confident that their business will experience significant growth over the course of the year.  Not only that, but a further 23% of those said that they were confident, although they acknowledged they had concerns.

Only one in 12 (8%) of participants said that they were worried about their business’s future and expected  there to be challenges to overcome. Additionally, 7% said that they were uncertain about the future, and either expect their business to grow or decline significantly.

Current concerns and challenges among small businesses:

Over two-fifths (44%) of respondents said that their strongest current challenge regarding their business is the economy and inflation, including rising costs of raw materials and stock. Additionally, 39% of participants said that the cost of bills and necessary investments is the biggest difficulty they are facing.

There are a number of ways in which small business owners and decision makers are trying to combat these challenges, 37% are working on cost-saving plans regarding their supply chain, professional services and change of their service providers to lower the cost of their monthly bills. Additionally, 35% are reworking their business so it is more eco-friendly, resulting in lower energy costs.

In terms of concerns, 37% of respondents are afraid that they might have to lay off employees in the future or change the location of their business due to costs. Additionally, 32% of those who participated in the survey feel as though they might have to sell their business in the future if they do not overcome challenges.

The importance of digital transformation:

Digital transformation is becoming more important for small businesses, aiding them to deliver value to customers, keep up with evolving expectations and stay ahead of the competition. It seems as though a fair number of business owners and decision makers are currently viewing digital transformation as a challenge, with 38% agreeing that it is a current obstacle they are facing.

A whopping nine in 10 (90%) of respondents said that investing in digital transformation and technology is important to their future growth as a business, out of those, 48% said it is very important.

Corin Camenisch, Product Marketing Lead at SumUp commented on the study: “As champions for small merchants, we conducted this survey to discover the confidence levels of small business owners and decision makers in Ireland to better understand the challenges they face, gauge their optimism about their future, and identify areas where support for SMEs might be needed.

“Overall, confidence levels of small business owners and decision makers across Ireland are high. This positive outlook suggests that small merchants are prepared to navigate potential uncertainties and continue to thrive. 

“We have provided tips off the back of our findings for those just starting out in business, or who are looking to deal with unexpected market fluctuations on our full campaign page.”

For more information alongside insight on what small Irish businesses can do to alleviate their concerns head here: https://www.sumup.com/en-ie/business-guide/irish-business-confidence-report-2024/

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