Lean BPI, the Irish digital growth consultancy for SMEs and microenterprises, today announces new survey results which reveal that cost is the greatest inhibitor of digital transformation for small enterprises in Ireland. The research found that almost half (46%) of small business owners cite it as a top barrier.
The research of 100 business owners in Ireland, running companies with 20 employees or fewer, was carried out by Censuswide on behalf of Lean BPI. It found that other major obstacles cited by businesses included legacy systems and cybersecurity risks (36% each) and connectivity issues (29%). The latter appears to be a significantly greater issue for organisations who are fully remote, with 37% who operate this working model saying connectivity is a barrier.
Despite concerns among small enterprises regarding the cost of digital adoption, 34% admit they have not made use of any Government digital supports. However, there is strong interest, with 75% expressing a desire to learn more about them.
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Lean BPI is encouraging small enterprises to prioritise digital transformation and take advantage of available supports to protect themselves from external risks and increasing market competition. Concerningly, one-third (34%) of small business owners feel they are not keeping up with the pace of digital change of their rivals, indicating the importance of digital adoption in remaining competitive.
In addition, small enterprises recognise the significance of digital adoption in general, with 64% agreeing digital transformation is helping their business to grow. This is evident in the research which found 38% of businesses are getting further sales and prospective leads through their social media channels. It is therefore unsurprising that 75% plan to invest more in digital over the next 12 months and 70% have a clear digital strategy for their business in place.
John O’Shanahan, founder and managing director, Lean BPI, said: “Although cost is a significant factor in digital adoption, government grants can substantially ease the financial burden for small enterprises. The research suggests that inconsistent behaviour may stem from an awareness gap, with over three-quarters of small businesses eager to learn more about the supports available.
“With external pressures and intensified competition at play, small enterprises risk falling behind if they fail to adapt to the digital environment. It’s essential that they conduct their own research and engage with their Local Enterprise Office Network to help break down the barriers to digital adoption. Encouragingly, the majority of small business owners are already on the right path, with a clear digital strategy in place for their business. With the right supports and guidance available, small enterprises can embrace digital transformation with their arms wide open and strengthen their position within the market in spite of external challenges.”
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