New research shows that 59% of small businesses are worried about the impact of tariffs on their business.
The research from LeanBPI, an Irish digital growth consultancy for SMEs and micro-enterprises, also found concerns among small enterprise owners about external threats to their businesses, along with issues regarding the adoption of digital technologies and the acquisition and retention of skilled staff.
LeanBPI’s research found that 67% of small business owners say digital adoption is essential for the survival of their business.
But they are also facing significant issues in attracting and retaining top tier digital talent, as they compete with much larger companies for the same talent pool.
71% of small business owners reported that they struggle to retain talent due to competition from larger companies and as a result, the same proportion report a clear digital skills gap in their sector.
LeanBPI said that despite the competition from larger companies boasting bigger budgets and salaries, 32% of small business owners believe small enterprises have an advantage over larger businesses as they are more agile and can adapt to market changes faster.
However, it adds that this agility is not being unleashed to its full potential as small businesses appear to lag on digital adoption.
Exacerbating the personal challenges they face, one in four small business owners said they face pushback from their teams on embracing new technologies.
Meanwhile, almost one in five of those surveyed admit that they are not providing sufficient training for their team on the use of digital technologies.
John O’Shanahan, founder and managing director, LeanBPI, said that given their size, small businesses are naturally more vulnerable when there are economic shocks, which the proposed US tariffs would undoubtedly cause.
“While there will always be external challenges, it’s how small businesses adapt to them that will determine their survival and success,” he said.
“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,” he added.
