Karla Browne
Keeping a business open in Roscommon has always meant keeping a close eye on the books. But for local business owners, the past few years have brought rising costs on almost every front — from electricity and wages to stock, packaging, maintenance and transport.
At Molloys Bakery, owner Declan Molloy says the cost of ingredients is one of the biggest pressures, with global events and climate change increasingly affecting what businesses pay.
“War and climate change would be the two big ones,” he says, pointing to rising oil and ingredient costs, and the impact of poor growing conditions on future crops.
Electricity has always been a major expense, and it continues to place pressure on businesses. At local butchers Maddens Meats, refrigeration is essential, meaning energy costs cannot simply be avoided.
“Electricity would be a huge factor, especially running a shop where you’re solely dependent on ESB,” says owner Tom Madden. “Temperatures have to constantly be kept cool.”
Even packaging has become noticeably more expensive. Madden says each small tray used by the business can cost an additional 20 cents.
“You could buy 200, 300 trays… it all adds up,” he says.
Wages are another pressure. Madden says finding staff in the butchering trade is difficult, while higher wages also contribute to the overall cost of doing business.
“It’s a hard job. It’s on your feet, it’s long hours, and so it is hard. Plus wages have gone up as well. When the wages go up, people must realise it means that prices go up as well.”
At McGuinness Pharmacy, employee wages, electricity and equipment maintenance are among the biggest expenses.
“We’ve got to pay for maintenance, that service fee every year, and that’s creeping up as the years go on.”
The business has invested in solar panels to help reduce electricity costs, but rising expenses have also put pressure on its ability to increase pay.
“We try not to affect our staff as much as possible,” a pharmacist at the business said. “We haven’t let anyone go. We haven’t reduced hours either.”
At Donnellan & Co, the rising cost of stock has meant some price increases have been unavoidable. However, Niall Donnellan says the challenge is no longer simply competing with other local shops.
“Trading locally is definitely becoming both harder and different,” he says, pointing to competition from businesses around the country and the growth of online shopping — something that would not have been a major factor 10 years ago.
For these businesses, rising costs are therefore only part of the challenge. They are also operating in a market where customers have more choice than ever.
Declan Molloy believes small rural businesses are carrying a burden that is often overlooked.
“A small business in rural Ireland… has the same legislation and bureaucracy that, I’d say, Kerry Group, which is a massive multimillion group, has,” he says.
“The Government needs to realise that small businesses in rural Ireland are not the same as the big businesses, the multinationals,”
“I think it’s quite unfair to the small, local businesses to have to match the same criteria as those big ones.”
Despite the pressures, the local connection remains strong, and is something that most bigger companies cannot replicate. Madden says looking after customers is key to competing with larger businesses.
“You have to stand out on your own, look after your clients,” he says. “That’s the whole secret at the moment.”
Niall Donnellan also believes the VAT burden on businesses needs to be addressed.
“The restaurants and all of them got a bit of help there. They got theirs brought down. We’re still very high at 23 per cent,” he said.
Declan Molloy, meanwhile, said he would like to see greater Government awareness of the realities facing businesses outside Dublin, arguing that more direct engagement with rural areas would help policymakers understand the pressures they face.
For Roscommon’s small businesses, personal connection may be their greatest asset. But with costs continuing to rise and competition extending far beyond the town centre, keeping the doors open is becoming an increasingly expensive balancing act.
