FridayOL

Dublin, Ireland – A new survey by the CCI (Confederation of Cork Business) reveals a stark reality for small businesses across Ireland: a significant majority are grappling with increased costs. The findings, released today, show that a staggering 77% of small businesses have experienced rising expenses in the past six months, with staffing costs emerging as the most frequently cited culprit. This paints a worrying picture for the backbone of the Irish economy.

The Rising Tide of Costs

The CCI survey, conducted among a representative sample of small and medium-sized enterprises (SMEs) across Ireland, highlights the challenges businesses are facing in the current economic climate. While inflation has been a global concern, the survey underscores the specific impact it's having on Irish SMEs. The 77% figure represents a substantial portion of the business community, indicating a widespread struggle to maintain profitability amidst rising operational expenses.

Staffing Costs: The Major Driver

Digging deeper into the data, the survey identified staffing costs as the primary driver of these increases. This includes wages, salaries, benefits, and recruitment expenses. The competitive labour market, coupled with the rising cost of living, has put significant pressure on businesses to increase salaries to attract and retain skilled employees. Many businesses are also facing difficulties in filling vacancies, further exacerbating the issue and potentially leading to increased overtime or reliance on temporary staff, both of which add to costs.

Beyond Staffing: Other Contributing Factors

While staffing costs topped the list, other factors contributing to the rising expense burden include:

• Energy Prices: Soaring energy costs have impacted businesses across all sectors, from retail to manufacturing.
• Supply Chain Disruptions: Ongoing global supply chain issues continue to drive up the cost of raw materials and imported goods.
• Insurance Premiums: Many businesses have reported increases in insurance premiums, further straining their budgets.
• Rent and Utilities: Rising commercial rents and utility bills are also contributing to the overall cost pressure.

Impact and Outlook

The CCI survey’s findings have significant implications for the Irish economy. Small businesses are vital for job creation and economic growth. If they are struggling to absorb these increased costs, it could lead to reduced investment, hiring freezes, and even business closures.

“These findings are concerning and highlight the need for government support and practical measures to alleviate the pressure on small businesses,” said a spokesperson for the CCI. “We urge policymakers to consider targeted interventions, such as energy efficiency grants and support for skills development, to help businesses navigate these challenging times.”

Looking ahead, the outlook remains uncertain. While inflation may eventually begin to ease, businesses are likely to face ongoing cost pressures for the foreseeable future. Adaptability, innovation, and a focus on efficiency will be crucial for small businesses to survive and thrive in this evolving landscape.