AXA Report Highlights Growing Challenges for Ireland’s Self-Employed
4th November 2024
AXA has today released a new report uncovering the realities faced by self-employed individuals across Ireland.
This research, based on a nationally representative sample, explores the aspirations, challenges, and motivations of Ireland’s self-employed, painting a complex picture of ambition tempered by financial strain.
“The report shows that while self-employment remains an attractive option due to the desire for independence and passion-driven work, many self-employed individuals still perceive challenges in accessing adequate support,” said John Caird, Commercial Director, AXA Ireland.
“Key concerns include financial instability, uncertainty around future business sustainability, and the belief among respondents that more tailored support could help them overcome these hurdles.”
Key Findings:
•Independence vs. Instability: While 87% of self-employed individuals agree they are crucial to the Irish economy, financial instability was reported as their top challenge, with 45% citing it as their biggest concern. The irregular nature of income continues to weigh heavily on the minds of these business owners.
•Support Shortcomings: Despite their economic importance, only 50% of respondents believe that Ireland provides enough support for those setting up their own business. This lack of support is reflected in challenges such as navigating complex tax systems and accessing sufficient funding.
•A Need for Flexibility: Women, in particular, are drawn to self-employment for the flexibility it provides. The ability to manage their schedules and balance personal responsibilities has made self-employment a more appealing path for women compared to men.
•Perception of Stability Amidst Challenges: Notably, 79% of self-employed business owners report that they are currently thriving, doing well, or stable. However, this optimism is overshadowed by concerns, as 45% identify financial instability as their biggest challenge and 50% view rising costs as their most significant threat in the coming year.
“The findings of this report emphasise the need for a more supportive ecosystem for Ireland’s self-employed. While they continue to be the backbone of our economy, contributing to job creation and innovation, financial challenges and a lack of safety nets are preventing many from reaching their full potential,” according to John.
The research also highlights a significant gap between the public’s perception of small businesses and the actual landscape. While 90% of businesses across Ireland are classified as small, the general public estimates this figure to be much lower—closer to 38%.
“This lack of awareness is concerning, particularly given the crucial role these businesses play in job creation, community vitality, and the broader economy,” says Caird. “Closing this perception gap is essential for fostering a more supportive environment for Ireland’s entrepreneurs.”
Mags Boland Murphy, Founder & Principal at Bofin Consultancy, brought her extensive expertise in business consultancy and advocacy for the self-employed to this report. Her insights provide a valuable perspective on the challenges and opportunities facing Ireland’s self-employed community.
“A collaborative approach is essential to ensure that these individuals, who are so vital to our economy, have access to the resources and support they need to not just survive, but truly thrive.
Policymakers, financial institutions, and the self-employed community continue to work together to create a more sustainable future. We need to remember that these SME businesses account for over 90% of the total number of businesses in the marketplace.” said Mags.
She outlines key actions that each of the most important stakeholders need to continue to undertake to actively support the self-employed businesses of Ireland:
Irish Self-Employed Individuals:
•Continuous improvement: Engage in ongoing training and workshops to enhance skills and stay competitive in the market. This can include learning how to utilise online platforms and digital tools easily to expand reach and promote products/services effectively to the right audiences. Knowledge can be invaluable.
•Savvy Smart Connection: Define the online/offline business groups which foster collaboration, resource sharing, and mutual support. To remember that we are trading in a global marketplace and that we are not defined by our location. “Maintain the human to human connection, every screen has a human behind it and people do business with people”. says Boland Murphy.
•Enhance Financial Education: Develop their financial management skills to better navigate budgeting, investments, and overall financial health. “We need to be empowering business and financial learnings from the ground upwards to develop future business leaders. Knowledge is no weight to carry” says Boland Murphy.
•Empower Innovation: Embrace the solution mindset and strive to engage innovation in the SME businesses through challenge and change. Do not be afraid to consider new ideas in your business.
•Engage circular: The circular economy is alive and active. When engaged proficiently it can reduce waste, engage your ideal audience, save you unnecessary stress and allow you to stand out for the right reasons.
Irish Consumers:
•Shop at Local Irish Businesses: Make a conscious effort to shop from local self-employed individuals and small businesses which will support the community and a circular economy.
•Purchase from your local markets and producers in your community when the opportunity arises.
•Raise Awareness: of local and Irish providers of quality services and products in their communities online and offline alike.
•Support Livelihoods: Remember that when you buy from local or Irish businesses you are supporting the Irish economy, livelihoods and households.
Irish Government:
•Introduce Financial Education: Develop financial education initiatives, including grassroot learning from school/college level upwards to equip and empower future leaders in business.
•Centralised Awareness Campaign: While there is a perception that there is a lack of support there for startups, in reality, it may simply come down to a lack of awareness of where/how to access the full complement of support that is actively available. A central campaign to increase awareness of available support initiatives from the Government would be a gamechanger.
•Challenge Continuity Fund: a safeguarded and regulated fund that would support independent business owners through challenge and change, a lot of which can often be beyond their control. This could be addressed on a case-by-case basis. In tandem, consider specific tax relief initiatives for independent business owners.
•Prioritise Mental Health Resources: Allocate resources for mental health support tailored to the unique challenges faced by self-employed individuals and their teams.
•Streamline Regulations: Simplify bureaucratic processes to create a more supportive environment for small businesses. This would help self-employed better understand and meet their legal and compliance obligations—making it easier to “see the wood for the trees” and focus on what truly matters for their business.
The AXA report serves as a crucial call to action for stakeholders across Ireland, highlighting the urgent need for enhanced support systems for the self-employed. By identifying the key challenges and disparities faced by this vital segment of the economy, the report aims to spark dialogue among policymakers, business leaders, and consumers.
“Ultimately, fostering a more robust ecosystem for self-employed individuals is essential not only for their sustainability but for the overall health of the Irish economy,” concludes John.
