Almost two thirds of Irish SMEs (small and medium-sized enterprises) have reduced or “completely stopped” using British suppliers since Brexit while more than a third have stopped selling to customers in Britain. That’s according to a new survey by the Strategic Banking Corporation of Ireland (SBCI).
Some 61 per cent of respondent SMEs said they had reduced or ceased using British-based suppliers (48 per cent said they had reduced while 13 per cent have stopped altogether).
On the exporting side, the survey indicated that 34 per cent of SMEs here have reduced or ceased selling to customers in Britain (26 per cent reduced, 8 per cent stopped).
Brexit has introduced red tape and additional paperwork to trade between both jurisdictions, alienating many Irish SMEs from either sourcing their inputs from Britain or selling into the British market. The SBCI said the findings reveal “stark changes in Irish SME trading patterns with Britain post-Brexit”.
The survey of 165 firms conducted earlier this year suggested that 19 per cent of SMEs have increased their use of suppliers in other EU states post-Brexit while an additional 19 per cent have started using EU-based suppliers for the first time.
Only 24 per cent said that Brexit has had no impact on their relationship with British suppliers or customers.
‘Hospitality demand is there, but there is no margin anymore’
More generally SMEs here pinpointed the availability of skilled staff, high energy and transport costs and access to finance as their biggest challenges.
Some 59 per cent of respondent SMEs said getting skilled workers was one of the biggest risks to their business right now while 48 per cent cited transport and energy costs as a risk with 44 per cent highlighting access to finance as a problem.
The survey also revealed a strong preference among Irish SMEs for green investments that reduce energy costs, such as solar panels and energy-efficient lighting.
”Our survey has given us an insightful snapshot into the key risks that Irish SMEs are facing and their attitudes to investing in green technology and doing business in a more sustainable way,” June Butler, the SBCI’s chief executive said.
“The SBCI has channelled over €4 billion in low-cost, flexible funding to over 60,000 Irish SMEs to date and we’re keen to make sure that our product range reflects what SMEs need and want,” she said.
“We’ve developed tailored funding programmes to help SMEs invest in addressing the big risks they face and to give them a platform for growing, creating jobs and becoming more sustainable. We’ll continue to work closely with SMEs to give them even better financing options on their journey,” she said.
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