55% of technology SMEs are profitable while revenues remain small

In the week that small business groups Isme and the SFA hosted their annual events, two reports were launched on the finance available for small and medium-sized businesses.

The first was the regular Department of Finance study on credit conditions, the other was a Bank of Ireland report on the financial situation of technology SMEs. This report drew on work conducted by a PhD student under my supervision. Overall the picture is mixed.

First the good news: The SME sector and the technology component are doing pretty well. There is, in particular in the small business technology sector, a huge focus on exporting. People selling business-to-business technology cannot achieve great scale in the Irish market and therefore need to look overseas for their markets.