The survey also highlighted the need for support to maximise these benefits was clear as just 60% said they were satisfied with the digital tools they were currently using. In all, 63% cited relationships with customers, employers and peers as the main reason for adopting digital technology.

The report recognised the role of existing Government supports for driving digital transformation in small businesses. These include the Digital for Business initiative, as well as the Grow Digital vouchers, which provide grants of up to €5,000 for software subscriptions, training and configuration.

Expanding on these, it recommended an adaptive policy framework to annually assess the effectiveness of current policies, as well as targeted data collection to inform future policies and tailored interventions that address sector-specific needs. 

The LeanBPI survey also ranks the digital fitness levels of each SME from 'Avoiders' to 'Explorers'. This profile is then used to prescribe the best course of action in driving digital adoption for that business.  

Co-written by John O’Shanahan, managing director of LeanBPI, and Prof Anuragini Shirish, Institute Mines-Télécom Business School, France, the report was launched at Breaffy House Hotel, Co Mayo, by Dara Calleary, Minister of State for Digital Transformation, and John Magee, chair, LEO Network.

In this Q&A interview, John O’Shanahan of LeanBPI outlines why the survey has found such a strong desire to engage with digital technologies among people working in small businesses.

How is digital adoption helping employees in small and micro businesses gain greater work satisfaction while also improving team performance? 

JO’S: Digital adoption allows employees to reduce the time taken for repetitive or time-consuming tasks, freeing them to focus on more interesting work. Digital systems reduce the risk of human errors and the associated stress in the business when a mistake occurs.

Typically, in a small business, one person may be responsible for specific processes and may be the “go to” person or expert for that task, so when that person is absent or if they leave the company, there is added pressure on the person filling that role as they may not have the same experience with the system. A reduction in manual tasks, with more efficient workflows and fewer errors, improves job satisfaction.

Are there benefits for the company in terms of attracting and retaining talent? 

JO’S: Yes, in today’s workplace, younger people are more comfortable with digital tools. Companies using digital tools are showing they are more forward thinking and moving with the times. Outdated manual systems results in added pressure on employees, while on the other hand efficient digital systems are like a coworker who never gets tired and is always there to help. Companies that implement effective digital systems are providing their staff with the tools to help them make the job easier. From the business perspective and in a market where there is a shortage of people & talent, the right person may not be available when you need them. Having technology to bridge that gap can be very helpful.

What does the LeanBPI and LEO Network survey tell you about how small Irish businesses are engaging with the opportunities presented by digital adoption?

JO’S: The survey highlights that small Irish businesses are showing significant interest in digital adoption as a pathway to growth and resilience. While many businesses are motivated to integrate digital tools, the survey reveals a range of readiness levels and several barriers to full adoption, such as limited resources and digital skills gaps. However, the findings highlight that with targeted support, even businesses that are hesitant or cautious about digital transformation are open to adopting practical, proven solutions. The survey demonstrates that small businesses in Ireland recognise digitalisation as essential for long-term success, and they are actively exploring ways to leverage it.

With significant funding support from LEO, how can SMEs use this opportunity to boost their in-house digital skills and safeguard the future of their companies? 

JO’S: With the support of LEO funding, SMEs have an opportunity to prioritise upskilling and build in-house digital capabilities. The Digital for Business programme is a free three-day programme that can support a business on selecting the right digital tools or helping them optimise existing digital solutions. The follow-on Grow Digital voucher provides some financial support towards the first year of a software subscription. By investing in digital training, companies can improve employees' competencies and confidence in using technology, which strengthens their operational resilience.

LEO support enables businesses to adopt tailored solutions that align with their specific needs, from automating repetitive tasks to enhancing customer engagement. By leveraging these tools and resources, SMEs can improve productivity and remain competitive.