Only 30% tech firms to seek credit

Only three-in-10 Ireland-based technology firms plan to seek bank credit this year, with the majority of growth-orientated companies set to fund the expansion of their businesses via their own resources, according to new research.

The findings form part of a survey conducted by Amárach Consulting on behalf of AIB (the latest in a series of sectoral outlook reports from the bank) and in partnership with the Irish Internet Association and the Irish Software Association.

The survey shows of the 90% of tech firms that plan to expand in 2014: two-thirds will fund their own growth; three-quarters are planning to grow their workforce; 60% are looking to export markets to grow their business and most see the issue of scaling operations (rather than access to credit) as their main growth challenge.

According to AIB’s head of business banking, Ken Burke the report shows the growth potential of the Irish technology sector and the capacity of firms, here, to compete in a rapidly changing global marketplace; with him adding that “the banking industry must respond positively to support our indigenous companies to capitalise on the opportunities ahead”.

He added that AIB is “deeply engaged” in funding the tech sector and will scale up that finance to meet demand.