Poor connectivity still harming rural firms

A report into challenges facing small and medium-sized enterprises (SMEs) across Ireland has discovered that poor connectivity can be the difference between a rural business thriving and closing its doors for the last time.

A survey of more than 250 SME owner-managers by Big Red Cloud found that 96% believed rural SMEs are at a significant disadvantage due to inadequate broadband connectivity.

Furthermore, the majority (56%) of respondents said that broadband remains the biggest challenge facing small businesses when it comes to technology. That is significantly more than the 10% of respondents that claimed cyber-crime was their biggest tech threat.

The slower-than-anticipated roll-out of the National Broadband Plan, which plans to ensure 30Mbps connectivity to more than half-a-million commercial premises in rural Ireland, is having a dangerous impact on the long-term future of many start-ups and sole traders outside big city areas.

Marc O’Dwyer, CEO, Big Red Cloud, said: “A staggering 96% of the businesses we surveyed are in agreement that businesses in rural Ireland are [at] a huge competitive disadvantage due to poor-quality broadband.

“What’s more, our survey looked at businesses in all areas of the country – not just rural – and, of these, 56% think that broadband is [still] the single biggest challenge facing Irish SMEs.”

Mr O’Dwyer insists the “slow pace of progress” in the implementation of the National Broadband Plan is becoming critical, insisting “many [rural SMEs] don’t have time to wait” for improved connectivity. He warned that “a bad quarter could make or break these businesses”.

“Most recent stats show that as of December 2017, 69% of the 2.3 million premises around the country have access to high-speed broadband,” added O’Dwyer.

“But what about the other 31% who are trying to carry out day-to-day business activities? The plan commits to 77% having the same access by the end of the year, climbing to 90% in 2020. But, as any small business owner will tell you, time is of the essence.”

Historically, Ireland has lagged in terms of broadband speeds too. A global study of over 63 million broadband speed tests by Cable.co.uk found that Ireland averages speeds of just 13.92Mbps, putting Ireland 36^th in the worldwide table.

“At the time, small business representative bodies were critical of Ireland’s ranking, and voiced concerns over the lack of infrastructure investment in the country and its effect on the business landscape,” concluded O’Dwyer.

“Our survey supports and furthers these sentiments.”

Date published 7 Jun 2018 | Last updated 7 Jun 2018