More than 70 per cent of small businesses that have participated in the Government’s Trading Online Voucher Scheme expect to recruit more staff, according to a survey published by the Department of Communications, Energy, and Natural Resources. On average, the small firms that expect to take on extra workers predict a jobs-dividend of almost 15 per cent.
The report, Growing Small Businesses Through Online Trade, also shows that small firms which start to trade online, or develop their existing online presence, experience an 85 per cent boost in customer inquiries and a 21 per cent average increase in sales.
The Trading Online Voucher Scheme was launched by the Government in 2014 to boost the number of small firms that exploit the growing digital economy. It offers small businesses a grant of up to €2,500, subject to matching funding, as well as training, mentoring, and networking support to help them develop their online trading capability.
The Minister for Communications, Alex White, said: “The Government’s support for online trading is making a tangible impact on jobs and economic activity in Ireland. This survey shows that seven out of 10 firms supported by the scheme expect to take on new staff, with the potential creation of an average 1.4 new jobs per company. This represents an increase of almost 15 per cent on average, as all the businesses surveyed employ fewer than 10 staff.”
Some 225 companies that received online trading vouchers responded to the survey, which found 85 per cent saw an increase in customer inquiries. The companies surveyed reported an average 21 increase in sales. Seventy one per cent expected to recruit new staff to cope with new business. An average of 1.4 jobs per company were expected to be created (in companies that employ fewer than 10 people ). Forty per cent of businesses had generated customer interest from new markets overseas. Sixty per cent said that the new business was additional and did not displace existing sales. Ninety nine per cent expected their online business to grow in importance. Eighty per cent said the competitive application process helped them in business strategy planning.
Irish consumers now spend almost €700,000 online each hour. Minister White said: “We want more Irish SMEs to win that business and the Trading Online Voucher Scheme offers a real opportunity for Irish retailers to increase sales and exports by marketing their goods and services more effectively. The average sales increase of 21 per cent is almost five times the rate of growth in the rest of the economy. This shows that small business with limited resources can expect an excellent return if they invest in online trading. No wonder businesses that make the leap into online trading believe their internet business will become more and more important to them.”
