Ways to make innovation accessible to small firms in Ireland

David Broderick

Director, Small Firm Association

Small and micro firms are increasingly competing in a global economy. To stay ahead and remain competitive, business owners must drive innovation across their practices.

In addition to boosting productivity and developing new products and services, embracing innovative systems will attract talent and retain staff through skill enhancement, support a company’s transition to a low-carbon enterprise and pursue growth by being competitive.

Access to innovation and finance

To be innovative, micro and small business owners must be supported by the economic environment and enterprise policies that reward entrepreneurs — and do not create barriers. Small business owners must have access to finance to take advantage of innovative opportunities.

Unfortunately, our research shows that Irish small business owners continue to be cautious when it comes to accessing external sources of funding. With both Ulster Bank and KBC having left the Irish market, entrepreneurs seeking finance now have fewer options. To continue to build a resilient and sustainable small business community, access to bank and non-bank finance for small businesses must be improved.

Irish small business owners continue to be
cautious when it comes to accessing
external sources of funding.

Cost challenges and finding support

Ireland’s micro and small enterprises are facing cost challenges in every area of business — including labour, transport, insurance, banking and utility costs. While many costs are outside the business owner’s and Government’s control, not all are.

For business owners to focus on innovative technologies, the Government must take firm action to reduce the costs they impose on the economy. To drive innovative processes and practices in small businesses, we need a tax system that encourages R&D and investment in scalable organisations. As we approach Budget 2024, Small Firms Association (SFA) is seeking such changes.   

Having skilled and experienced staff — and being a skilled and experienced owner-manager — is crucial to understand the value of innovation. To support entrepreneurs and their staff, SFA Skillnet, MentorsWork, provides bespoke guidance, advice and mentorship with a particular focus on innovation to improve business processes and practices. For small firms to be a leader rather than a follower in innovation, SFA will continue to advocate for better access to finance, enterprise policies and easily accessible support for Ireland’s small business community.