Cost remains top barrier to digital adoption for Irish small businesses, Lean BPI survey finds.
Almost half of Ireland’s small business owners cite cost as the biggest obstacle to digital transformation.
That’s according to new research from Lean BPI which highlights ongoing challenges facing enterprises with 20 employees or fewer.
“Although cost is a significant factor in digital adoption, government grants can substantially ease the financial burden for small enterprises”
The survey of 100 business owners, conducted by Censuswide, found that 46% identified cost as their primary barrier to digital adoption.
Barriers to digital progress
John O’Shanahan, founder and managing director of Lean BPI
“With external pressures and intensified competition at play, small enterprises risk falling behind if they fail to adapt to the digital environment”
Legacy systems and cybersecurity risks were each cited by 36% of respondents, while connectivity issues affected 29% of businesses.
Connectivity problems proved particularly challenging for fully remote organisations, with 37% of these businesses reporting it as a significant barrier to digital progress.
Despite cost concerns, the research revealed that 34% of small enterprises have not accessed available government digital supports. However, there is strong appetite for information, with 75% expressing interest in learning more about these programs.
The findings suggest Irish small businesses recognise the competitive pressure of digital transformation. One-third of respondents said they feel unable to keep pace with their competitors’ digital advancement, while 64% acknowledged that digital transformation is helping their business grow.
Social media channels are already delivering results for many businesses, with 38% reporting they generate additional sales and prospective leads through these platforms.
Awareness gap
Looking ahead, 75% of small enterprises plan to increase their digital investment over the next 12 months, and 70% have established a clear digital strategy.
John O’Shanahan, founder and managing director of Lean BPI, said government grants can help address the financial challenges facing small businesses.
“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.”
O’Shanahan warned that businesses risk falling behind without digital adaptation. “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.”
He noted positive signs among business owners. “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.”
The research was conducted by Censuswide among business owners with 20 or fewer employees in the Republic of Ireland. Lean BPI, founded in 2014, is a business improvement consultancy that helps small businesses select, integrate, and adopt digital solutions.
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