David Broderick
Director, Small Firms Association
Amid global economic uncertainty, the Government needs to lay fresh foundations to support indigenous small businesses, which are the backbone of the Irish economy.
From the Celtic Tiger and the subsequent Financial Crash of 2008, the economy survived and eventually thrived due to the grit of the small business community and the investment from large multinationals.
Policies should support small businesses
The Small Firms Association (SFA) called for the Government to draft a roadmap for developing the small business sector and ultimately secure its future. Ireland is a nation of small businesses, and 43% of workers here are employed by a small business. This is why such a roadmap is crucial. It is only logical that government policy should support this process. It’s impossible to do for the medium to long term when the goalposts keep getting changed with each budget announcement.
The SFA is encouraged by the new Programme for Government commitment to publish Enterprise 2035, a long-term ambition for growth and job creation over the coming decade. Additionally, the proposed establishment of a Cost of Business Advisory Group in the Department of Enterprise, Tourism and Employment and the promised changes to PRSI and VAT are also welcome.
57% of businesses say
that labour costs have
contributed to rising costs.
Impact of rising costs
The Government needs to act fast because there is a lot of pressure on small businesses due to rising costs. At the start of the year, the national minimum wage, as expected, rose by 80 cents to €13.50. This is why the Association has been calling for a temporary PRSI rebate for small businesses to be introduced as soon as possible. It is the most efficient way of getting support into the pockets of hard-pressed business owners.
Last summer, in partnership with Amárach, the SFA published an extensive survey on business costs which found that 83% of small businesses have experienced rising costs in the previous 12 months. The research also showed an estimated increase of 16.6% in average business costs during that time while 57% of businesses say that labour costs have contributed to rising costs.
Boosting small business resilience
Amidst economic uncertainty beyond our shores, the Government needs to be ambitious for small businesses and future-proof them for generations to come. Small business is the heartbeat of our community; like the GAA, we are in every town and village in the country. We were here during recessions, before any ‘boom’ or ‘windfalls.’ We now need the right support and structures in place for whatever else comes our way.
