Trade is difficult in a Border area devoid of foreign investment, says Donegal Enterprise CEO MICHAEL TUNNEY
AS CHIEF executive of Donegal Enterprise Board, Michael Tunney knows more than most about the difficulties faced by businesses on the southern side of the Border at the moment.
Lower VAT rates, lower costs and a much-devalued sterling in the North have combined to make commercial life even harder there than it might be in other parts of the Republic.
And all this in an area where, according to Mr Tunney, small, local businesses have traditionally provided the “economic life blood” in the absence of large-scale foreign investment.
“While the retail sector has received significant media focus, the sterling devaluation has had a considerable impact on all trading sectors – from engineering firms to small software companies, and from contract cleaning companies to joinery businesses,” he says.
“Businesses that may have had a long track record of trading into the North and Britain are now finding that they need to continually review and reduce costs, and many are now facing difficult decisions as to whether to continue to supply a customer or market – sometimes even at a loss – in the hope or expectation that business conditions will improve in the near future.”
All of this has led to a “significant” increase in demand for the services of Donegal County Enterprise Board. This work often relates to reviewing a company’s cost base or trying to identify new sales opportunities or efficiencies. Sourcing working capital is a big issue, as is staff management.
Mr Tunney believes this assistance is critical, but warns that “these efforts alone cannot indefinitely support businesses to fight a tide of competitive and economic pressures”.
He is calling for a “direct local enterprise initiative” that involves businesses, Government and public sector agencies.
“It will require a genuine commitment from all sides to work together to grow and develop local entrepreneurship and to finally give local business and small enterprises the priority they deserve,” he says.
Una McCaffrey
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