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A new economic assessment suggests that significantly increasing digital investment among Irish small and medium-sized enterprises could deliver a substantial boost to the wider economy. The research estimates that doubling the current average level of digital spend by SMEs has the potential to add €8.3 billion to Ireland’s economic output.

The findings come from a report published by Digital Business Ireland, which indicates that many Irish SMEs have yet to reach the level of digital capability needed to compete effectively in modern markets. While adoption of basic digital tools has improved, the report argues that more advanced digital commerce systems remain underutilised across large parts of the sector.

Titled Taking Digital Commerce in Ireland to the Next Level, the research stresses that digital development should be treated as an ongoing process rather than a once-off upgrade. Businesses are encouraged to continually enhance their digital maturity, particularly in areas such as online sales platforms, data-driven marketing, and customer engagement technologies.

The report outlines several recommendations aimed at supporting this progression. These include the introduction of a second, higher-value tier of the Grow Digital Voucher, designed to help SMEs invest in more advanced digital commerce capabilities. It also proposes targeted tax incentives, including accelerated tax credits, to encourage sustained investment in digital systems rather than short-term improvements.

At a policy level, the report calls on the Irish Government to actively support positions at EU level that protect the ability of businesses to use personalised digital advertising. The authors argue that such tools remain critical for SMEs seeking to reach customers efficiently in competitive online environments.

Commenting on the findings, Victor Timon, Chair of Digital Business Ireland, said that digital transformation is an ongoing challenge for businesses. He noted that the pace of change continues to increase, driven by rapid innovation and the growing influence of artificial intelligence, meaning that businesses must constantly adapt to remain competitive.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.