Skillnet Innovation Exchange’s Conor Carmody brings us up to speed on the initiative’s progress so far and his thoughts on Ireland’s SME landscape.
Ireland’s small and medium enterprise (SME) environment has had some considerable developments recently.
In May, the Irish Venture Capital Association (IVCA) released a Venture Pulse survey detailing how venture capital firms invested €532.8m in Irish SMEs in Q1 of this year, marking a record for funding in a single quarter. Around the same time, the Irish Government established a Small Business Unit aimed at giving SMEs in the country more focus and support.
In Ireland, one initiative dedicated to supporting SMEs – as well as corporate digital transformation efforts – is Skillnet Innovation Exchange, which itself has hit some significant milestones in the past while.
We spoke to the organisation’s director, Conor Carmody, about the programme’s progress so far.
Deals done
Over the past few months, Skillnet Innovation Exchange has had some considerable developments.
The Irish digital transformation facilitator had two major regional expansions over the summer – one in Cavan and the other in Cork. The organisation has also arranged multiple commercial and innovation deals across sectors such as manufacturing, sport and food production.
Last month, the organisation facilitated its largest deal to date – an €800,000 deal between Nuálach Automation and The Nestbox Egg Company to streamline egg production lines using robotics and automation.
“In addition, we have delivered numerous other challenges in recent months with organisations including VHI Healthcare, FKM, Platinum Homecare, Celtic Linen, Ireland West Airport, Oroko Travel, Tennis Ireland, and Gymnastics Ireland – with many at various stages of negotiation and many more already in the pipeline,” Carmody tells SiliconRepublic.com.
The Skillnet Innovation Exchange process consists of multiple stages: a corporate partner posts a challenge (a strategic need), after which SMEs with potential solutions are invited to learn more. This is followed by a timeline where an initial solution is submitted and Skillnet Innovation Exchange creates a shortlist of submissions, resulting in a demo day where the shortlisted SMEs pitch their solutions to the corporate partner. The partner then engages the preferred SME in negotiations and trials, which if successful results in the contract being awarded to the SME.
Aside from the core service of Skillnet Innovation Exchange, the initiative also offers members access to its Impact Selling upskilling programme.
“Training demand has been strong,” says Carmody, “with participants engaging in accredited sales training through ESI and other programmes including AI, lean programming, branding and engagement.”
Coming up on the organisation’s planner is its inaugural Innovation Summit. On 23 October, more than 200 SMEs, leading experts, innovators and key decision-makers will congregrate in Galway to discuss the challenges facing SMEs and opportunities for growth.
“Looking ahead, we will place even greater emphasis on challenges in areas such as digital transformation, sustainability and emerging tech innovation – paving the way for higher-value deal facilitation as the programme matures,” says Carmody.
Irish SME outlook
With Skillnet Innovation Exchange heavily involved in Ireland’s SME ecosystem, we asked Carmody about the current state of the landscape and what lies ahead.
He says the Irish SME environment is being shaped by “several powerful forces”, such as digital transformation pressure and access to corporate supply chains.
One consistent challenge for SMEs is access to resources – an issue that has traditionally been more difficult for SMEs outside of Dublin and Leinster. For example, in 2023 a report from the IVCA found that just 26pc of VC investment went to SMEs outside of Leinster during 2022.
However, Carmody believes this is improving.
“With government and agencies prioritising regional clusters and skills initiatives, SMEs outside Dublin are increasingly gaining access to resources and opportunities,” he says, adding that he predicts this will continue to improve.
“Supports and ecosystems beyond Dublin – in hubs such as Cork, Galway, Wexford and other regions – will continue to expand, creating more local scale-up opportunities and reducing geographic barriers for SMEs.”
Skills development is also a major influence on the landscape according to Carmody.
“As AI and emerging technologies reshape industries, continuous upskilling is essential,” he says. “Providing accessible, relevant training for SMEs and their teams remains a national and organisational priority.”
Going forward, he says that skills-first models will become more prevalent. “Expect to see funding streams and programmes that combine procurement access with tailored upskilling, ensuring SMEs can both win and successfully deliver larger contracts.”
Another topic that Carmody says is gaining importance in the Irish SME landscape is sustainability, particularly in terms of sustainability data reporting.
“The demand for accurate ESG data is accelerating, driven by procurement teams, investors and regulators,” he says. “For SMEs, robust sustainability reporting will become a prerequisite for winning contracts and remaining competitive. This creates a significant opportunity for data-driven solutions, software and advisory services.”
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