LeanBPI, the Irish digital growth consultancy for SMEs and microenterprises, has announced the launch of a new report aimed at supporting the essential digital transformation of small businesses in Ireland.
The report, “Exploring Technology Readiness of Irish Small Businesses”, was launched in the presence of Minister of State for Digital Transformation Dara Calleary T.D. It found a strong appetite amongst this cohort for digital transformation while also identifying challenges to its adoption.
Conducted in partnership with the LEO Network, LeanBPI surveyed owner-managers of microenterprises and small businesses across the country to determine their digital fitness level and identify their technology readiness profile, ranging from Avoiders to Explorers. This profile is then used to prescribe the best course of action in driving digital adoption for that business.
According to CSO data, there are nearly 350,000 businesses* of this size in Ireland, yet they risk being left behind as they often lack the in-house skills and budgets required for digital transformation. The report identified the need for tailored strategies to support them at various stages of readiness, focusing on customised training, promoting a culture of innovation to meet specific needs, and addressing barriers to technology adoption.
Highlighting the potential benefits of adoption, 87 per cent of those surveyed said the digital technology that they used significantly enhanced their productivity. However, the need for support to maximise these benefits was clear as just 60% said they were satisfied with the digital tools they were currently using. Showing respondents’ desire to move with the times, nearly two-thirds (63%) cited relationships with customers, employers and peers as the main reason for adopting digital technology.
The report recognised the role of existing Government supports for driving digital transformation in small businesses. These include the Digital for Business initiative, as well as the Grow Digital vouchers, which provide grants of up to €5,000 for software subscriptions, training and configuration. Expanding on these, it recommended an adaptive policy framework to annually assess the effectiveness of current policies, as well as targeted data collection to inform future policies and tailored interventions that address sector-specific needs.
Co-written by LeanBPI managing director John O’Shanahan and Professor Anuragini Shirish, Institute Mines-Télécom Business School, France, the report was launched at Breaffy House Hotel, Co. Mayo by Minister of State for Digital Transformation Dara Calleary, TD, and John Magee, Chairperson, Local Enterprise Office (LEO) Network.
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Commenting on the research, Minister Dara Calleary said: “Small businesses and microenterprises are of huge significance to the Irish business sector. As Minister of State for Digital Transformation, it is very encouraging to see the enthusiasm that these organisations have for adopting digital tools, driven by Government supports. Knowing that through them, even businesses with only a handful of employees see digital transformation projects as realistic goals gives us confidence that the sector is ready to embrace the future.”
John Magee, Chairperson, LEO Network: “LEOs are working daily with small businesses to support their digital journey, which enhances their productivity and competitiveness, builds resilience and drives innovation. This report highlights that there is a genuine appetite among small businesses for digital transformation and emphasises the value of our Digital for Business and Grow Digital supports. While small businesses face constant challenges, there is relevant and practical support available from their Local Enterprise Office."
John O’Shanahan, managing director, LeanBPI, commented:"What we see in this sector is a strong desire to transition into the digital world and seize the opportunities it brings. By collaborating strategically with all stakeholders and building on existing supports, we can help Irish entrepreneurs realise their businesses' full potential. Together, we aim to make a meaningful impact at the local level, fostering innovation, resilience, and lasting benefits for communities while positioning Ireland as a global leader in small business digitalisation."
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