How the Corona Virus is Affecting SMEs

Company Formations

Andrew Lambe, director of the Company Bureau has stated the new company registrations in the state have fallen by 39% in the first half of March 2020. This figure is expected to accelerate as demand falls and unemployment increases.

Andrew went further to say: “Based on new orders and enquiries, we are expecting to see the numbers in April down 50pc or even more. This is extremely worrying for the Irish economy.”

Some of this slow down is also partly due to the precautions the CRO has taken. Initially the CRO was completely closed. Now they do not accept deliveries from couriers. This reduced service will have slowed down the number of applications they can process.

Self employed allowable expenses in Ireland
Self employed allowable expenses in Ireland

Increase in .ie Domain Names

As a result of the restrictions being placed on how businesses operate and the agile nature of SMEs, the number of .ie domain names has increased. David Curtin, CEO of the IEDR has stated they have seen an increase of roughly 30% in new .ie domain name registrations in April compared to the same period last year. 

The increase in websites on the Irish market will be fuelled by the resilience of Irish entrepreneurs trying to find new ways to reach their customers. Selling online offers new opportunities to small businesses who would have traditionally sold through their brick and mortar premises. Without establishing a digital presence traditional businesses have no route to market until the lockdown restrictions are lifted.

There are also a number of supports available such as the trading online voucher run by the Local Enterprise Offices. This grant covers 90% of the costs for small businesses who are trying to get online up to a maximum of €2,500

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