A new survey from the Strategic Banking Corporation of Ireland reveals that access to skilled staff, high energy and transport costs as well as access to finance are the biggest risks identified by Irish SMEs.
The Strategic Banking Corporation of Ireland is the State’s promotional financial institution and it has channelled over €4 billion in funding to over 60,000 Irish SMEs to date.
It has almost 40 lending partners, ranging in size from the main banks to non-bank lenders, smaller providers and credit unions.
Today’s survey showed that 59% of respondent SMEs said that getting skilled workers is one of the biggest risks to their business right now, 48% cited transport and energy costs as a risk to their business and 44% said that access to finance was a significant risk.
Today’s survey also revealed a strong preference among Irish SMEs for green investments that reduce energy costs, such as solar panels and energy-efficient lighting.
Of the SMEs that said they are planning a green investment over the next three years 59% said they will invest in solar panels, while 46% said they plan to invest in lighting improvements that are more energy-efficient and 42% of SMEs intend to invest in electric vehicles
The survey said that reducing electricity and heating costs is the number one priority for SMEs in making green investments, with 29% citing this reason, while 26% said their green investments are driven by a desire to play their part in reducing emissions, 16% said that they want to be more sustainable and 13% said their aim in making these investments is to improve their brand reputation and build customer loyalty.
The latest SBCI survey also showed changes in Irish SME trading patterns with Britain post-Brexit, with 61% of respondent SMEs saying they have reduced or even completely stopped using suppliers based in Britain, while 34% have reduced or stopped selling to Britain.
Meanwhile, 19% said they have increased their use of suppliers in other EU countries post-Brexit, while an additional 19% have started using EU-based suppliers for the first time. Just 24% of Irish SMEs say that Brexit has had no impact on their relationship with British suppliers or customers, the SCBI said.
June Butler, chief executive of the SBCI, said the new survey has given 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.
“The SBCI has channelled over €4 billion in low-cost, flexible funding to over 60,000 Irish SMEs to date and we’re keen to make sure that our product range reflects what SMEs need and want,” Ms Butler said.
“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,” she added.
Article Source – Staffing, energy costs biggest worries for Irish SMEs – SBCI – RTE
