Elizabeth Bowen
Public Affairs Lead, Small Firms Association
To respond to the challenges and opportunities of a digital economy, small businesses must have access to finance.
Irish micro or small businesses are currently operating in a rapidly evolving business environment, where embracing digital technologies has become increasingly important for competitiveness and to support the economy to transition to net zero. To create and support a digital transition, the small business community must have access to finance at each stage of the life cycle to succeed.
Small business barriers to credit
It remains the responsibility of the banking system to provide credit to businesses. Unfortunately, the withdrawal of KBC and Ulster Bank earlier this year, on top of unprecedented contraction since the credit crisis of 2009 — which saw the flight or closure of multiple business banks and non-banks — and rising interest rates will make accessing credit for small firms harder in the years ahead. In Budget 2024, the Small Firms Association (SFA) is urging the Government to focus on attracting new bank and non-banking activity into Ireland to fill the credit gap.
The Government must prioritise access to
finance for indigenous small businesses.
Government-backed resources
In the meantime, there are several government-backed supports available to micro and small firms to improve the adoption of digital technologies, such as:
- The Local Enterprise Office, Trading Online Voucher Scheme is designed to assist small businesses with up to 10 employees to trade more online, boost sales and reach new markets. It offers financial assistance of up to €2,500 with co-funding of 50% from the business along with training and advice to help your business trade online.
- If you need funding for your business and cannot get bank finance, Microfinance Ireland may be able to help. Loans of up to €25,000 are available to support your business.
- SBCI offer low-cost finance to fund working capital and investments as well as flexible funding schemes including leasing, hire purchase and rental schemes.
- MentorsWork provides business owners with free upskilling in digital and automation, delivered by the SFA
Supporting businesses all over Ireland
To scale and grow micro and small firms and allow them to respond to the challenges and opportunities of a digital economy, the Government must prioritise access to finance for indigenous small businesses.
The SFA proudly represents a diverse membership of businesses with less than 50 employees: homegrown and spanning every sector of our economy. Our members can be found in every town and every city in Ireland.