.IE Tipping Point Report 2020

Section 3 The SME response to Covid-19 In Section 1, we learnt that only a quarter of Irish SMEs have any ability to sell online. Despite being hamstrung in this way, especially during a period in which most bricks-and-mortar shops have been closed for a prolonged period of time, Irish SMEs have enjoyed public support, including in the form of spending. This rise in national solidarity may have temporarily allowed SMEs to benefit despite their lack of investment in digital and e-commerce. Our research shows that almost 80% of all SMEs have invested no money at all in online services since the Covid-19 crisis began, despite the fact that there were consumers actively seeking them out as the results in Section 2 show. Among the 80% that have not invested since the Covid-19 crisis, 46% said that online simply isn’t a priority for them, a figure that rises to over half among SMEs with five or fewer employees. Perhaps this is understandable given that we are in the throes of a global pandemic. 14% said that they have managed to do the majority of their business in-store despite the lockdown, while 12% have diverted money that might otherwise have gone to digital to cover wages and bills. Public sentiment is highly changeable. What currently benefits SMEs may not benefit them in three months, six months, or a year. A robust e-commerce strategy must be built on solid, competitive online services that meet consumer demand. Why SMEs haven’t invested in their online presence (Base: 400 SMEs that have not invested in their online presence since the Covid-19 crisis) An investment of up to € 500 was most common (Base: 500 SMEs) 21% of SMEs have invested in their online presence since the Covid-19 crisis began 46% 22% 14% 12% 23% Other We have diverted money to wages, bills etc Most of our business has been done in-store Online isn’t a priority Already doing all we can 8