.IE Tipping Point Report 2021

Others have been clearly affected by the shift in the economic status quo and have found it difficult to find their customers online or convince them to use their online store. The pandemic has undoubtedly been a baptism of fire for many SMEs. Local authorities, business groups and national policymakers should continue to help SMEs with digital skills training where possible by addressing knowledge and resource gaps. Future intentions With a significant majority of SMEs benefiting from online investment, and considering the current trajectory of the pandemic, it is perhaps unsurprising that most fully intend to continue investing in their online presence in 2021. 61% believe that their online presence will be more important to their business this year than last. Less than a quarter intend to scale back their online services. However, SMEs appear to be overestimating their overall strength relative to international businesses. 53% believe that Irish consumers prefer to shop online with Irish businesses rather than international retailers (20%), despite almost the opposite being true. However, SMEs are generally now more cognisant of the effects of the pandemic on consumer behaviour: 54% believe that consumers will prefer to buy products online over the next year, up from 24% in 2020. Irish SMEs also recognise their unique advantages relative to international businesses. As consumers do, they see themselves as more reliable, trustworthy and with better delivery services. To generate sustainable, near-term wins for Irish e-commerce, it is important that local business accelerators and government agencies focus on helping SMEs consolidate these USPs. The Covid SME [continued] 79% 28% Yes, busier than before pandemic (21%, 2020) 50% Yes, same level of business as before pandemic (25%, 2020) 13% Yes, although still struggling (19%, 2020) 9% No difference (16%, 2020) 0% Unsure (19%, 2020) Positive results from online investment? Base: 86, SMEs that have invested since Covid .IE Tipping Point 2021: Irish e-commerce and digital business in the Covid vaccine era | 9 of SMEs will continue to invest in their online services in 2021 Base: 500, all SMEs