Two in five (40.2%) Irish business leaders are confident that their SME will grow significantly over the next 12 months, according to research from SumUp.
In a survey of 250 small Irish business owners and decision-makers, the fintech company found that a quarter (23.1%) of respondents are generally positive but have some concerns.
A further (21.9%) believe their business will perform well and overcome challenges, and a minority expressed worry or uncertainty.
Some 7.2% reported they are worried about their business and expect a lot of challenges, and 6.8% said they are uncertain but expect their firm to either grow or decline significantly.
Inflation was flagged by 44.2% as their biggest concern, while 38.7% said energy bills and essential investment and 38.3% answered that they are seriously concerned about whether their business is capable of digital transformation.
A further 37.9% are worried about customer retention, and 37.1% fear their competitors offering cheaper alternatives. A third (34.3%) said they are unsure they can stay ahead of the competition.
In terms of steps being taken to overcome the challenges identified, respondents were mostly likely to consider expanding their offering (40.6%) and 37.9% will look to modernise by investing in digital technology.
Some 36.7% of the survey respondents said they now had a plan in place to save on supply chain and service provider costs, and 36.3% plans to save money on overheads.
Finally, a solid 35.1% of businesses who got back to use mentioned that they were interested in reworking their business to be more eco-friendly to reduce energy costs.
SumUp recommended five actions business owners can do to alleviate their concerns, including:
- Planning for the future Make a back-up plan that puts contingencies in place to protect your business in the event of an economic downturn.
- Look to cut costs by changing energy suppliers or working out a bulk deal with your supplier to keep your overheads in check.
- Diversity of your portfolio Branch out into related markets to offset the impact of low sales.
- Get online Any modern business requires an online presence as their customers are using the internet to find products and services
- Offer discounts and a loyalty programme It may impact profitability initially, but it can be a great way to increase customer retention and loyalty.
(Pic: Getty Images)
