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Access to digital products for small businesses in Ireland: What you need to know

Access to digital products for small businesses in Ireland: What you need to know

Posted: Mon 9th Sep 2024

Small businesses are the lifeblood of Ireland's economy, with over 300,000 SMEs contributing significantly to both employment and economic growth.

However, as the digital landscape continues to evolve, many of these businesses face considerable challenges in adopting the digital tools necessary to remain competitive. These challenges are becoming more pressing as Enterprise Nation prepares to launch a new Tech Hub dedicated to supporting Irish SMEs in their digital transformation.

Challenges facing small businesses in adopting digital products

Recent findings from our Small Business Barometer report highlight small businesses' difficulties in accessing the support they need to grow. Less than half (42%) of small businesses said they had found business support online, while another 36% stated they couldn’t find access to business support that worked for them.

This lack of access to appropriate support is a significant barrier to digital adoption, particularly as businesses leverage technology to focus on growing their business.

The importance of digital tools in growth plans

Our barometer report also found that just over a third of small businesses in Ireland (37%) expect to reboot their growth plans over the next 12 months, with 36% aiming to grow by around a quarter. While small businesses partly embrace the digital world, a third (29%) say they have purchased technology they don't have time to use. That rose to 44% in Ireland.

Despite the clear benefits of digital tools, several challenges prevent widespread adoption among Irish SMEs, which include:

1. Cost barriers

For many small businesses, the cost of adopting digital tools remains a significant hurdle. Around 35% of SMEs flag financial constraints as a major barrier to implementing new technologies. Purchasing new technology is the easy part; however, driving digital adoption amongst your team can be challenging.

2. Digital literacy

Digital literacy is another critical challenge. According to a 2023 survey by the Irish Digital Skills and Jobs Coalition, nearly 40% of SME owners lack the necessary digital skills to utilise new technologies effectively. Without these skills, even businesses that can afford digital tools may not be able to use them to their full potential.

nora-irwinEnterprise Nation member based in Cork, Nora Irwin, accessed the Go and Grow online programme

3. Cyber security concerns

Cyber security remains a growing concern for small businesses. The fear of data breaches and other cyber threats can deter SMEs from adopting digital tools, especially those without the resources to invest in robust cyber security measures. This concern is compounded by the fact that more than a third (37%) of Irish firms still experience late payments, which can alert financial vulnerabilities.

4. The urban-rural digital divide

The urban-rural divide is one of Ireland's most significant disparities in digital adoption. According to the Central Statistics Office (CSO) data from 2023, SMEs in urban centres, such as Dublin, Cork and Galway use digital tools at approximately 75%. In contrast, this figure drops to around 55% in rural areas.

The primary reasons for this gap include better broadband infrastructure and greater access to digital literacy programmes in urban areas. As a result, rural businesses often find themselves at a disadvantage, struggling to compete in an increasingly digital marketplace.

Organisations supporting digital access for small businesses

Several organisations across Ireland are stepping in to bridge the gap and support SMEs in their digital transformation:

1. Digital Hub Dublin

The Digital Hub in Dublin is a prominent cluster for digital enterprises and start-ups, offering a nurturing environment for businesses.

Marketplace: The hub hosts various service providers offering digital tools from web development to digital marketing.

Support: Small businesses benefit from mentoring, training and networking opportunities that help them make informed decisions about digital products.

Digital Hub DublinDigital Hub, Dublin

2. Local Enterprise Offices (LEOs)

LEOs across Ireland are a vital resource for small businesses, offering access to digital tools and training.

Marketplace: LEOs connect SMEs with trusted digital service providers through initiatives like the Trading Online Voucher Scheme.

Support: LEOs provide guidance, financial assistance and workshops to help businesses enhance their digital capabilities.

3. Irish Tech Hub Network

This network includes several tech hubs across Ireland, such as Dogpatch Labs in Dublin, Portershed in Galway and Republic of Work in Cork.

Marketplace: These hubs host events and workshops where businesses can explore the latest digital tools and how to use them.

Support: The hubs offer mentorship and consultation services, helping SMEs identify and implement the most effective digital products.

Dogpatch_Startup HubDogpatch, Ireland, Startup Hub

4. ConnectedHubs.ie

ConnectedHubs.ie is a national network of digital hubs that support remote working and digital transformation across Ireland.

Marketplace: The platform offers access to digital tools and services and a directory of digital hubs.

Support: ConnectedHubs.ie provides resources on funding, digital training and other supports for small businesses.

Opportunities for SMEs

As you can see, several organisations can provide educational resources for small businesses to gain access to digital products. Enterprise Nation wants to take this a step further by matching small businesses with the right digital products based on their size of business and digital challenges.

This can unlock significant opportunities, including:

  1. E-commerce growth: Digital tools can help businesses expand their reach, enabling them to tap into online sales and new customer bases

  2. Efficiency and productivity: Adopting the right digital tools can streamline operations, improve customer service and enhance overall productivity

  3. Support networks: Organisations like LEOs, digital hubs and Enterprise Nation provide invaluable support and resources, helping SMEs navigate the digital landscape effectively


Register your interest

The digital landscape for small businesses in Ireland is full of potential and we want to further support them to start, grow and scale. The findings from our Small Business Barometer highlight the urgent need for accessible, practical support to help SMEs overcome these barriers.

With the launch of Enterprise Nation’s new Ireland Tech Hub on the horizon, we aim to provide this support by connecting SMEs with the right digital tools and resources at the right time.

By leveraging tools like this, small businesses can overcome these challenges, enhance their digital capabilities and drive their growth in the digital age.

To participate in this exciting initiative, sign up as a free member here to join the wait list for the Ireland Tech Hub.

Don’t miss the opportunity to transform your business with the right digital products.

As the Chief Operating Officer at Enterprise Nation, the UK's largest small business community, we lead the charge in creating a dynamic two-sided marketplace that seamlessly connects small businesses with the support they need to thrive.  My passion for design, technology, and innovation drives our mission to revolutionise the business support landscape, making it more accessible, efficient, and impactful for entrepreneurs at every stage of their journey. Every day, our team is dedicated to empowering start-ups and small businesses by providing timely and tailored resources that foster growth and success. We believe in the power of community and the importance of delivering the right support at the right moment. I’m always eager to discuss how we can further enhance the Enterprise Nation platform and better serve the small business community. If you have any questions or ideas on how we can support your business, please don’t hesitate to reach out. Let’s work together to help small businesses succeed.  When I'm not building a marketplace I'm also the founder of Girls in movement, a not for profit that educates young girls in India - we have recently hit over 20,000 downloads on the podcast and launched an online store this year. I've also just launched a Children's book called The Girl and Her Globe, so feel free to take a look: www.girlsinmovement.com

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