John Dolan: I’d never run my own business - it looks like a thankless task

I grew up in an age when hardly anyone I knew set up a business. I don’t even think the word entrepreneur was invented round my way until around 1995.

My early experiences of it were confined to my father, a self-employed builder who had the gumption to expand his business to 20-plus employees in the boom times, and the wherewithal to go and find work in Scotland and Germany during the bust times.

My mum always ruefully said the building trade was the first to suffer and the last to recover in a recession, which always struck me as grossly unfair.

Times have changed on that front. Recessions are rarer. Borrowing and other sources of investment have made setting up in business easier, teaching business studies in schools and universities has helped, and there are now role models for entrepreneurship in every community.

Our towns and cities are alive with these businesses.

There was a time soon after covid when it seemed like the world and his wife were opening up a coffee shop or truck, for instance - and good luck to all of them.

Small businesses are what keep the economy ticking over, and the successful ones employ other people to keep the money-go-round and the taxes flowing.

The large U.S companies may be propelling the Irish economy with their mega-enterprises and juicy Corporation Taxes, but it’s the flourishing small businesses that are the true soul of this country’s economic heart.

They ought to be cherished, protected, and defended at every turn. But are they?

I have long felt that running a business is a bit of a thankless task in this country. That while it must be nice to be your own boss, the headaches and stresses that can come with it are too high a price to pay.

Take, for example, the rows over commercial rates in both the city and county that have been playing out in the past few days.

In Cork county, an attempt to increase the rates that businesses have to pay by a hefty 8% in 2027 was voted down this week, as was a bid to reduce the increase slightly to 7.5%.

The county council had to adjourn the meeting, and reconvened two days later to set a rate of a still hefty 7.25%, with waiver supports for small and medium-sized businesses, such as small pubs, restaurants and coffee shops.

There is still uncertainty in the city council area, where a 7% increase in commercial rates is being considered, and inciting much anger.

Clearly, councils’ budgets are coming under severe pressure, but it seems unfair to dump that burden on the people trying to run small businesses in a difficult climate.

At a time when energy costs are soaring because of the war in Iran, insurance seems to be ever spiralling upwards (they don’t appear to need a war anywhere to do that), and consumers are feeling the pain in their pocket, adding another increased bill to the business environment is a recipe for potential disaster on our high streets.

Cork Business Association (CBA) has said as much, and is calling for the mooted commercial rates increase in the city to be aborted.

“Introducing another rates hike at this juncture would add yet another layer of financial strain - one that many simply cannot absorb,” it warned. “These mounting costs risk undermining the very foundation of our city’s economic resilience.

“We need to support business sustainability and protect local jobs. A rates increase now sends the wrong message to those who continue to invest in and champion our city.”

Chambers Ireland, which represents more than 9,000 business nationwide, has also spoken out, calling on local authorities to exercise moderation in setting commercial rates for 2027, and citing instances of proposed increases of 5-15%.

Its Chief Executive, Ian Talbot, said: “Increases on this scale would place additional strain on businesses at a time when many operating costs have already risen sharply.

“Any increase must be proportionate and it should be introduced following meaningful consultation with the local business community.”

Uncertainty over any increases as we head towards Christmas is far from ideal, with many companies already budgeting for next year, but with one hand tied behind their backs as they await confirmation on rates.

These can be tricky waters for councillors of all parties, as they seek to invest in their region and balance the council budget, while also wanting to protect the business sector.

However, Fermoy Aontú county councillor, Peter O’Donoghue, was among those leaping to the defence of businesses in Cork, calling the proposed 8% increase in the county commercial rates “bonkers”.

“It defies common sense, it defies logic,” he insisted. “We simply cannot have another hike on tax on small businesses who are already struggling. They simply can’t cope.

“They are falling under the weight of costs that are only going one way, through the roof. Imposing additional unsustainable costs on businesses that are already just hanging on by their fingertip is not good commercial sense.”

Asking the government to step in and make up the shortfall is one solution - but they appear to have enough overspends of their own to grapple with, having just settled a hefty public sector wage bill.

It’s not just in the area of commercial rates where businesses are coming under mounting pressure.

I’ve long been sceptical of politicians who announce grandiose promises at election time and bask in reflective glory as they implement them, while dumping all the hard work on the backs of businesses.

Yes, it’s good news for the workers when the government introduces pension auto-enrolment or a rise in the minimum wage, or increases to maternity and paternity leave - but often, all it takes from them is a stroke of a pen and, voila, they are the heroes of the hour.

Meanwhile, the people running businesses - especially smaller enterprises with no HR department - and who are keeping the economy afloat are left to take on all the extra pressures and charges such changes incur, with barely a word of thanks.

All of this comes at a time when many businesses are already complaining about the burden of red tape, from councils, government, the EU, and a host of other regulatory bodies.

One survey showed that more than half of companies cite regulation and compliance as their top challenge.

We should be making setting up and running businesses easier, but instead, we pile on more and more workloads and charges on them.

A large rise in commercial rates could be the straw that breaks many business backs in this cost-of-living crisis.