Rising input costs are some of the biggest concerns
Small firms say that high costs of material pose substantial risk
TARIFFS, access to finance and rising input costs, are some of the biggest concerns facing Irish small and medium-sized enterprises, according to research from the Strategic Banking Corporation of Ireland (SBCI).
The survey was carried out among 266 respondents across Ireland, also identified high energy and transport costs and difficulties in hiring people with the right skills as challenges for SME’s.
Three-quarters of SMEs said the high cost of materials is one of the biggest risks they face in the current climate, and 71 per cent said access to finance presents a significant risk.
Seven in ten (69 per cent) cited the impact of tariffs, potentially causing disruption to global supply chains and limiting access to overseas markets, as a key risk ahead of the possible introduction of 30 per cent tariffs on EU goods entering the US next month.
In terms of tariffs, a high number of Irish SMEs are exposed to multinationals and US-based trade, with 28 per cent earning at least a quarter of their revenues from doing business with this sector and nearly 40 per cent of exporters trading with the US.
Despite the risks, Irish businesses are largely positive about their financial outlook and growth prospects, and many are planning further hiring and investment.
A total of 70 per cent anticipate their financial position will improve in the next 12 months, while 60 per cent plan to hire more staff, and 64 per cent expect strong investment growth in both the next 18 months and the next five years.
SBCI, the state’s promotional financial institution has channelled over €4.5bn in funding to over 63,000 Irish SMEs to date.
