Business Predict Boost From Trading Online Vouchers Scheme

Almost three quarters of businesses that participated in the Governments Trading Online Voucher Scheme expect to recruit more staff and predict a dividend of almost 15%, a new survey has revealed.

Published by the Department of Communications, Energy and Natural Resources, the report also shows small firms that begin to trade online, or develop their existing online presence, experience an 85% boost in customer inquiries and a 21% 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.

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 ten 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% on average as all the businesses surveyed employ fewer than ten staff," he said.

Some 225 companies that received Online Trading Vouchers responded to the survey, which found that:

• 85% saw an increase in customer inquiries

• The companies surveys reported an average 21 increase in sales

• 71% 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 ten people)

• 40% of businesses had generated customer interest from new markets overseas

• 60% said that the new business was additional and did not displace existing sales

• 99% expected their online business to grow in importance

• 80% 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% 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."

The scheme was developed as a partnership between the Department of Communications and the Department of Jobs Enterprise and Innovation. It is administered by Local Enterprise Offices.

(MH/LM)