Thousands of businesses don't even have a website - and that's a big worry

TODAY’S GLOBAL MARKETPLACE never rests. Every second of every day, someone, somewhere is buying something online.

The power of the internet means that an Irish business owner can sleep and still earn money as shoppers in Melbourne and Tokyo fill their carts with jams from Tipperary, jumpers from Donegal and whiskey from Dublin.

We’re certainly not shy with our wallets, either. Irish consumers spent €6.5 billion online in 2015, up 17% on the previous year. This figure is forecast to hit €21 billion by 2020.

Both figures impressive for a country of 4.5 million, but compared to our neighbours, Ireland’s e-commerce figures are dwarfed by the UK’s €150 billion spend in 2015 and the US’s €300 billion.

Clearly, people worldwide are happy to spend in digital stores for 24/7 convenience and unfettered access to a practically unlimited variety of goods and services.

And yet, despite Ireland spending more and more online, our own Irish SMEs are missing out on this e-commerce revolution. According to our research, one-quarter of Irish SMEs do not have a website or any online presence whatsoever. This is a worryingly high number.

Of those without a website, three-quarters say that they see ‘no need’ to have one. I struggle to think of any industry or business that doesn’t have a need. At the very least, a website functions as an online shop window or a calling card, but it has the potential to transform a business’s fortunes through e-commerce.

In today’s borderless online marketplace, Irish consumers willingly buy goods and services from online shops and brands in the UK, Europe and further afield. No doubt many of them would purchase from an Irish site if they knew about it.

With so much money being spent abroad, Irish SMEs are losing out. Indeed, they risk being left behind entirely.

Alarming statistics

While many Irish SMEs do engage in e-commerce, a significant proportion still struggle with it. Just 42% can take sales orders online, while only 35% can process payments. These are alarming statistics and clearly demonstrate that few of our SMEs are truly open to online business.

This problem has two major root causes, namely poor internet infrastructure and a general lack of supports for companies making the leap online. Even in the year 2016, broadband connectivity remains an issue for many more rural areas of Ireland.

For SMEs struggling with a slow or non-existent internet connection, e-commerce is extremely difficult, if not impossible. Addressing this deficit absolutely must be a key issue for the next government, especially if the economic recovery is to resonate outside the major cities.

In addition to this underdeveloped infrastructure, many rural councils and local enterprise offices lack the resources necessary to help nurture businesses’ e-commerce initiatives.

There needs to be greater coordination between local government, business representatives and the tech industry so SMEs can be shown the true value of e-commerce.

We at the IEDR also do our part to help SMEs get online. Each year, through our Optimise Fund, we award €150,000 worth of services to fifteen Irish SMEs with a .ie domain to improve their online presence and develop their e-commerce capabilities.

It’s clear to us that once Irish SMEs are given the means and the knowledge required to engage in e-commerce, they embrace it completely and reap the rewards.

SMEs are the backbone of our economy and the strongest drivers of job creation – after all, they make up 99% of all Irish businesses and employ nearly 70% of us. It’s also the most important sector to contribute to society in terms of long-term, balanced regional development.

With an enabling infrastructure and support from government and industry, Irish SMEs can seize the opportunity of e-commerce and become niche players on the world’s digital market, boosting company and national revenue, and stimulating economic growth, particularly in areas outside Dublin and other urban centres.

David Curtin is the chief executive of the .ie domain registry (IEDR). 

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