The Impact of Brexit on Irish Small and Medium Size Enterprises

Like many countries, Irish SME’s are less active in international trade compared to larger enterprises. The UK has traditionally served as the first and only export/import market for smaller companies which has left many exposed to the challenges Brexit faces.

Four years of planning for the eventual exit of Britain from the EU has given time for Irish companies to contemplate their strategies. One thing is for certain, an increased focus on research and development (R&D) will give Irish companies a competitive edge in the UK and elsewhere.

Investments Required

With managerial concerns ranging from increased costs of imports for manufacturing to how to enter new markets abroad, the boardrooms have been busy. 

Investment in the development of innovative and value-added products and improved services and processes are key measures Irish companies have taken on board. Activities include.

• Developing sustainable businesses which do not need to rely as much on our closest neighbour.
• Continuing to invest in digital initiatives across production and the supply network, manufacturers can respond and build resilience that can enable them to thrive.
• On the new product development side, businesses should be able to demand premium prices to help to cope with fluctuations in currency and the cost of border controls that have come into force.
• Considering internal processes and finding more efficient ways of working will help to make Irish companies more competitive in their chosen markets
• Making improvements to existing products or new iterations which will help you to stand out from the crowd.

Innovation Funding

Irish SME’s are faced with the reality that they must compete in this post-Brexit climate against much larger players with more resources to invest in innovation.

It is therefore vital for these companies who undertook technical innovation activities relative to the company’s current products/processes; to get back the R&D Tax Credit of 25% of qualified expenditure to sow back into the business.

Want to know more?

To take advantage of the R&D Tax Credit in Ireland, please contact the experts at Braithwaite Ireland today.

Avail of our FREE consultation for your business on 086 3194747/01 6530199 or email Brenda at [email protected]