Two-thirds of small businesses have said digital adoption is essential for their survival, but they are encountering “significant issues” in attracting and retaining top digital talent as they compete with much larger companies.
Lean BPI, an Irish digital growth consultancy for SMEs (small and medium-sized enterprises) and microenterprises, has published a survey that shows concerns among small enterprise owners about external threats to their businesses, along with issues regarding the adoption of digital technologies.
Almost three-quarters (71 per cent) of small business owners reported that they struggle to retain talent due to competition from larger companies. As a result, the same proportion report a clear digital skills gap in their sector.
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When assessing their own knowledge of digital technologies, 46 per cent of small business owners said they feel out of their depth.
With this in mind, 48 per cent reported that managing digital transformation is stressful and 43 per cent admitted they lack the confidence to drive digital change within their organisation.
One in four small firm owners said they face pushback from their teams on embracing new technologies, while almost one in five said they are not providing sufficient training for their team on the use of digital technologies.
In addition, 59 per cent of small businesses said they are worried about the impact of tariffs on their organisations.
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.
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Lean BPI managing director John O’Shanahan urged small business owners to access digital grants from their Local Enterprise Office.
“Given their size, small businesses are naturally more vulnerable when there are economic shocks, which the proposed US tariffs would undoubtedly cause,” he said.
“While there will always be external challenges, it is how small businesses adapt to them that will determine their survival and success.
“For now, business owners are rightly concerned about tariffs, but inevitably, more challenges await – along with plenty of opportunities. The difference will be in agility and how businesses use technology to respond smartly and with speed.”
