Discuss the challenges facing businesses in the tertiary (services) sector in Ireland. - Leaving Cert Business - Question (A) - 2020

Another major challenge stems from commercial rates levied by local authorities. These rates can create financial pressure on small businesses, particularly in the retail sector. The high cost of these rates puts local retailers at a disadvantage when trying to compete with larger chains that can absorb such expenses more easily.

The ongoing impacts of Brexit continue to create an atmosphere of uncertainty for businesses. There are concerns regarding the export of goods and services, as changes in trade regulations and tariffs could potentially increase costs and complicate operational logistics.

The rising cost of rents in urban centers, such as Dublin, further complicates matters for service businesses. Higher rental costs can lead to increased operational expenses, which in turn compels businesses to raise wages to attract and retain skilled employees. This escalation makes it challenging for service providers to maintain affordable pricing for consumers.

Overall wage demands are rising, particularly in sectors like transport. Businesses must navigate these pressures while remaining competitive in pricing, which could also reduce their profit margins and exacerbate staffing challenges.

The shift toward online purchasing has led to numerous retailer closures. Many brick-and-mortar stores struggle to adapt to the changing retail landscape, resulting in a loss of jobs and contributing further to the challenges faced by the tertiary sector.

Finally, poor infrastructure and a lack of skilled workers in certain areas can further exacerbate these challenges. Issues such as insufficient utility services and the resultant fallout on industries, like banking, can diminish the overall competitiveness of the services sector.