SMEs Heavily Rely On Bank Finance Option, Says Survey

bank finance

Central Statistics Office (CSO), through its recently conducted survey, says that small and medium-sized enterprises (SMEs) in Ireland heavily depend upon the bank loans, which are the most popular and most sought after type of finance option for them. The survey reveals that more than a fifth of all SMEs had sent their loan applications to banks in 2014.


The survey indicates that the majority of the startups or those that have been in the market for some time, and have been able to establish themselves as that with  small or medium holdings in the market prefer bank finance over any other type of finance.


The survey reveals statistics of exactly how many enterprises applied for bank finance in 2014. And according to the CSO’s Access to Finance survey, almost fifth of all small and medium sized enterprises (SMEs) have ventured out exploring for the options that bank finance offer and further making a decision of choosing this option for their businesses.


Other than small and medium sized enterprises, there are also numerous micro sized enterprises that have engaged in the application for bank finance. A total of twenty percent of these micro – sized enterprises were reported to have applied for bank finance. This brings the amount of applications for small sized enterprises up to thirty five percent where medium sized enterprises remain thirty  nine percent, accordingly.


The main reason mentioned by most of the small and medium – sized enterprises that led them to explore the bank finance options is the fact that the given benefits have helped them in getting immense success. The survey further found that exporting SMEs succeeded much more than the non-exporting SMEs while applying for bank finance. Around ninety -five percent of exporting SMEs gained immense success as unlike the non-exporting enterprises, which recorded a success ratio of almost sixty – seven percent, obviously, both stand apart in their success ratio.


The survey revealed that the Information and Communications (ICT) sector was least interested in opting for the bank finance options as compared to the other sectors irrespective of the fact that they would gain greater success if ever they ever went through this way.


The Strategic Banking Corporation of Ireland (SBCI) even encouraged or rather, pressurized Irish SMEs to explore alternate sources of funding other than the traditional banking lending options to enjoy greater benefits. SBCI Chief Executive, Nick Ashmore was heard saying that the Irish SMEs heavily depend upon the banks as compared to the SME’s in other countries. He even alerted by saying that these SMEs should wary off the ever-emerging and rising number of non – bank funding options.


“Irish SMEs have been paying more to borrow than similar businesses across Europe.”


The Big Red Cloud Chief Executive, Marc O’Dwyer, further said that there was a very clear line of difference between the export-oriented SMEs and non-export-oriented SMEs. He also brought to light the struggle that both micro and small type of businesses have to go through in Ireland.


Concluding, Marc says this report reminds the upcoming Government of its elected responsibility toward the 190,000 small businesses in Ireland.

Apple’s Encryption War With The Government

apple campus

Apple has recently urged that the government be responsible for creating a panel pertaining to encryption. This comes off the recent news between the government wanting to intercept and essentially create a backdoor to the iPhone because of the latest terrorist attack involving the San Bernardino shooting.

This has snowballed into a public relations fight between the government and the tech company. After the government asked Apple to disclose this and help them, Apple’s Chief Executive Tim Cook fired back with a letter detailing that they would not do so. He made it clear that the company would refuse to make any sort of software that would compromise the integrity of the company’s encryption technology. It isn’t just about one phone but the larger issue at hand.

Cook stated, “This case is about much more than a single phone or a single investigation. At stake is the data security of hundreds of millions of law-abiding people, and setting a dangerous precedent that threatens everyone’s civil liberties.”

FBI’s Response

FBI’s Directo James Comey came out with an article fighting against this case by saying that this wasn’t about creating a legal precedent for the government but instead he referred to the abstract and slanted view he has on justice.

He said, “Fourteen people were slaughtered and many more had their lives and bodies ruined. We owe them a thorough and professional investigation under law. That’s what this is.”

Last week a federal judge ordered Apple to create the software and retrieve the data from the phone that was locked and used by one of the perpetuators of the crime who had been killed in a gun fight.

Bill Gates was on the side of the lawmakers as he said that technology companies should comply with the government and have to co-operate with them. He said it is a special case and not something that is going to access any other type of information because it is for a particular case that needs to be dealt with.

Perhaps Gates is out of touch here because Zuckerberg, and founder of Twitter, Jack Dorsey and Google’s head Sundar Pichai have all been on the same side of Cook.

Apple is going to be fighting the order and their main argument is that this will jeopardize the future integrity of iPhone safety and encryption from prying eyes.  The formal legal arguments are currently being drafted up to combat this.

This event has prompted a debate amongst academics and people in the position to be dealing with encryption. In a rare show of event Apple made a conference call with reporters and stated that they would be fighting against this and hopes it will bring a broader conversation to the idea of encryption and personal protection. Meanwhile not to be outdone the government has been searching people affected by the shooting to build up a case of public opinion against the company so that their demands can be met from Apple.