Ireland is a high cost location for small businesses with many identifying labour costs as the number one risk to their future. That’s according to the Small Firms Association, which appeared at the Joint Oireachtas Committee on Business, Enterprise and Innovation.
Addressing the committee, Linda Barry, SFA Assistant Director, said: “Ireland is a high cost location for entrepreneurs and established businesses. Many SFA members operate in low margin environments, making it difficult for them to absorb cost increases. Meanwhile, low inflation and customers’ demand for value make it impossible for many businesses to pass cost increases on.
“Our members have identified labour costs as the number one risk to their businesses over the coming year. The other costs causing greatest concern are insurance costs, which are still rising for many businesses, and Local Authority rates.
“The Government has access to detailed data and expert analysis on all of these costs, in particular from the National Competitive Council. The SFA is calling on Government to create a stronger link between this information and policy decisions, to ensure that Government is not adding to cost pressures on small businesses.”
A full copy of the SFA’s ‘Cost of Doing Business’ submission is available here.