No doubt, Ireland joins the mainstream of development at a good speed. However, several challenges in recent times make the Irish businesses stay in a continuous wrestle with the vicissitudes. The impact is on every aspect and creates complications against smooth existence in the market. Not to mention, small-scale businesses as well as industry giants, all are struggling with a series of complications. Every sector is in the clutch of some issues that hamper the commercial growth of the business in the concerned industry.
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It is not a perception but a situation that Ireland is facing and this has a potential impact on the business world. Brexit is the driving factor behind this. Not several but many issues have come into picture affecting the commercial profits of varied sectors. From daily routine activities to long-term goals, everything may face threat. Things are still uncertain. In such situations, existence in the market becomes even more challenging. Commercial things cannot bear big losses as it affects the future for many years ahead. Sometimes, it even discontinues the existence of the business that becomes the victim of an adverse situation.
Let us take a look at the major challenges that face the Irish businesses.
1. Brexit Degrades The Export Rate
Ireland has always been in a pleasant and promising relationship with the UK. However, after the Brexit buzz came into existence every economy and nation that is in any type of interaction with Britain could not prevent the consequences.
In 2018, the value of export had a rise of 12% but the export made to the UK was 5% down.
Unfortunately, the adverse impact on this aspect is expected to continue in the coming time too. The Irish business class can easily relate to this.
2. Environmental Issues – Need Of Coordination Between Profit And Planet
There is an increasing concern on matters like global warming, carbon footprint, etc. Due to this, businesses are expected to take care of environmental concerns. This creates the need to do business with a different approach. Only profit cannot remain in the center of concern, equal attention is necessary for the planet. Harmony between the commercial benefits and environmental well-being should be maintained. The established as well as start-up businesses have to take care of many things on this part. This requires a total transformation of strategies and day-to-day activities.
The Origin Green program is an initiative of Bord Bia – The Irish Food Board. It brings together the food sector to inspire environment-friendly businesses. Farmers, food producers, foodservice operators, retailers all are part of this.
Initiatives like this are great but demand to change the complete business model. A focus on what is the product, how it is produced, how it is used and finally how it gets disposed of, is vital.
3. Social Sustainability And Economic Sustainability
With environmental issues, social and economic sustainability are also important and unavoidable. Social sustainability denotes human rights, health & safety concerns, well-being and labor rights. On the other hand – economic sustainability focuses to ensure if the employees are also making due and sufficient money or not. Do they get enough money to survive or not. Companies, no matter how established, cannot avoid this aspect.
4. Financial Situation Of Consumers
In 2018, the economic performance of Ireland was strong. Consumer spending was also on progress. However, the personal sector stayed behind and had nothing promising. Consumer confidence showed a fall and in October, it was lowest as compared to the previous 46 months. Retailers are still in a fix and have to struggle with the consumers that are reluctant towards high prices and need value for money. Already people are struggling in their financial lives with a burden of multiple debts. For instance, many are living under the stressful threat of pending obligations of high-interest loans. Payday loans in Ireland are most known among them.
5. Agri-Food Sector In A Threat
Believe it or not but after the recent consequences due to Brexit, every business sector in Ireland is in impact. Small or big, some type of effect is sure to see. The Irish companies with big exposure to the UK are now facing baggage of uncertainties and commercial loss. The circumstances are unpredictable and leave many questions unanswered. This makes the concern bigger as even the future has nothing to tell with surety. It is not easy to create a new market in a small-time, some companies had more than 70% of consumers in the UK. Now they have to restart things and with huge losses, it is not an easy thing.
The above are certainly the challenges but hopes are still there. For instance, the business tax policies of Ireland give it the tag of ‘one of the best tax systems’ in the world. This is sure to give the businesspersons a big relief. The rest of the concerns are expected to calm down with time. Besides, ups and downs are part of the commercial world and one cannot escape but can learn to fight and win.