The Small Firms Association (SFA) has today claimed that indigenous Irish suppliers account for 10% of purchases made by multinationals based in Ireland, with every percentage point increase injecting an additional €1 billion into the domestic economy, underlining the scale of the opportunity for small firms.
The research was released today as the association launched the SFA Business Connect event at the Aviva Stadium, which has attracted 350 companies to learn how small firms can win contracts with larger companies.
According to the SFA, multinationals currently source €4.5 billion of goods and €5.7 billion of services from indigenous businesses. It amounts to 18.1% of their total spend on goods and 7.3% of their total spend on services.
The Association believes that for larger organisations, working with small firms provides access to a pool of local suppliers and an opportunity to demonstrate their positive impact on the communities in which they are based. The SFA also claim that tapping into the expertise and flexibility in small businesses also enables them to innovate rapidly.
Speaking today, SFA Chair, Sue O’Neill said, "Ireland is a nation of small businesses. Small firms with less than 50 employees account for 98% of the total number of businesses and employ one in every two private sector workers. They are present in every village, town and city in the country."
She added, "There are huge opportunities for small businesses once they understand how to navigate working with larger organisations and position themselves correctly to deliver value. Securing a large indigenous or multinational B2B customer has the potential to transform a small business."