Navigating The Storm: Challenges & Solutions For Irish SMEs – White PaperIt may feel like there are no silver bullets for Irish SMEs, but lets not catalogue the dead bodies without at least trying to fashion one or two. Let’s delve into the key issues and potential remedies in this white paper written by the Fitzgerald Power team.Download the white paper.White Paper OverviewNavigating the Storm: Challenges and Solutions for Irish SMEs.There are no magic solutions in the realm of Irish SMEs, but there is a need to stop adding to their burdens. Over the past two years, the costs of doing business for these small and medium enterprises have surged, and the outlook remains challenging. This white paper delves into the key issues and potential remedies: Economic Pressures.In the past 2 years, Eurozone inflation levels hit modern highs, following a prolonged era of low inflation leading to increased costs for SMEs across Ireland. The consequent rise in interest rates further exacerbates the debt burden, hindering cash flow and impeding investment.Supply Chain Volatility.Global events and geopolitical uncertainties have injected volatility into international supply chains, impacting SMEs’ procurement costs. Factors like COVID-related disruptions and escalating shipping expenses have hit small businesses hard, amplifying their financial strain.Regulatory Challenges.Analysing sectors like pharmacy, convenience retail, restaurants, and pubs reveals a bleak forecast. Declining margins, rising labour costs, and regulatory burdens paint a challenging picture for SMEs, with many facing negative cash flows and potential closures by 2026.Proposed Solutions.While policy initiatives aim to level up Irish society, a one-size-fits-all approach threatens the viability of smaller businesses. Instead, targeted supports are needed to safeguard vulnerable SMEs. Suggestions include revenue support through VAT rate reductions, State support in relation to policy-driven payroll cost increases for the SMEs that need it most, and overhead support with rate waivers for qualifying businesses.Conclusion.Many Irish SMEs face an uphill battle with economic pressures and regulatory changes. Policymakers must prioritise support mechanisms over additional regulatory burdens to ensure the resilience and sustainability of SMEs, vital contributors to local economies and communities. It’s time to provide the necessary support for SMEs to navigate these turbulent times and emerge stronger.Read the full white paper here for more in-depth insights and analysis.Our team is dedicated to providing you and your business with the absolute best financial advice out there. We approach each and every case from a fresh perspective, working with you to find tailored solutions that leave your business feeling stronger than ever. With our expert analysis, we translate figures into a language you can understand. Using timely, reliable advice, our experienced team of experts devise sophisticated plans to encourage cost efficiency and growth. If you would like to discuss this research, contact our team at Fitzgerald Power today.Further Articles Market Pulse Report Q3 2023Market Pulse is an analysis of the key trends in the SME sector, prepared by Fitzgerald Power on a quarterly basis. Check it out here. Read Blog Market Pulse Report Q4 2023Market Pulse is an analysis of the key trends in the SME sector, prepared by Fitzgerald Power on a quarterly basis. Check it out here. Read Blog
