Budget 2023 must tackle cost of doing business for small businesses - SFA

The Small Firms Association (SFA ) has launched a 'Small Business in Ireland: Cost of Doing Business' report, which examines the cost of doing business in 2022 for Ireland’s small business community, the report outlining the range and extent of costs associated with doing business in Ireland and provides insights on challenges faced by small employers.

Analysis from the report shows: (1 ) The total average cost of doing business for all Small (20-49 employees ) Micro (

"Ireland’s Micro and Small enterprises are facing cost challenges in every area of business, be it labour, transport, insurance, banking, and utility costs. Many operate in low margin environments, making it difficult for them to absorb cost increases and demand for value makes it impossible for many to pass the increase onto customers.

"At a time of high inflation and no end in rising input prices, notably energy prices, the SFA is concerned that this may lead to viable enterprises closing due to their inability to absorb rising business costs. To avoid this and safeguard our domestically owned businesses, Budget 2023 must provide certainty on costs and maintaining competitiveness," SFA Director Sven Spollen-Behrens, stated.

He added that the Small business priorities for Budget 2023 are: (1 ) Tackling the increasing costs of doing business, (2 ) Sustain investment and retain talent through the tax system, (3 ) Preparing small firms for the future and (4 ) Support the transition to a green economy.

"In Budget 2023 SFA is calling for measures to support the retention and upskilling of staff to help small businesses survive these challenging times. To make Ireland a better country for entrepreneurs, SFA would like Capital Gains Tax to be reduced to 20% and the lifetime limit for CGT Entrepreneur Relief increased to €15 million and greater investment in digitalisation, circular economy practices and energy security to enable the transition to a Green Economy.

"Introducing these measures and reducing the cost of doing business would mitigate some of Ireland’s current vulnerabilities and give confidence to business owners. With indicators suggesting a difficult winter ahead, the SFA will remain committed to helping small business, as they attempt to manage the current challenges the economy is facing, with the Russian invasion of Ukraine and inflation," Spollen-Behrens continued.

 

Page generated in 0.1011 seconds.