More than half of Irish businesses raised their prices in the past year, and are falling behind their European counterparts when it comes to innovation, according to a survey of companies by financial payments technology company SumUp.
More than one in four Irish businesses have made no key changes to their operations beyond raising their prices, despite 38 per cent stating that the current economic situation had a negative impact on their business.
The survey, which collected responses from businesses across Europe, found that the levels of innovation in Ireland’s continental counterparts was higher than in Ireland.
Nearly one third of Irish business owners reported an increase in delivery and material costs, with 16 per cent of businesses noting that delivery times have been extended.
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As a result, more than half of Irish businesses, 52.2 per cent, stated that they moderately increased prices – a higher rate than their European counterparts. Trailing Ireland, 46.8 per cent of respondents in Germany had raised prices, while 43.2 per cent had done so in the UK and 40.9 per cent in France in order to combat higher delivery costs.
This comes as nearly 45 per cent of merchants reported that customers have reduced their overall spending or are not purchasing as frequently.
Nearly two in five businesses said customers have become increasingly price-conscious, often seeking discounts or comparing prices more frequently.
Of the 945 respondents to the survey across Europe, fewer than 30 per cent of companies said they felt optimistic about their business growing over the next two years.
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“Innovation is now more important than ever,” said Niall Mac an tSionnaigh, chief executive of SumUp in Ireland. “In the current economic climate, where merchants cannot rely on traditional means of growing their business, they must find new avenues to explore.”
He said allowing companies to create “innovative solutions” for businesses is critical in helping them manage times of economic stress.
