Following the recent closures of some favourite local spots, including Kale+CoCo, All My Friends pub and many more, the future is undistinguished for small businesses across the country. With January nearly behind us, the landscape for these SMEs seems to be filled with nothing but ever-rising costs, as business owners face constant uncertainty with price volatility. In 2023, the SME count in Ireland was approximately 309,000 with 91% of these accounting for micro-sized businesses, employing between 1 and 9 people. Yet, according to a survey by PwC in the last quarter of 2023, approximately 650 businesses are expected to close this year due to “market disruption” and rising running costs.
The ICOB (Increased Cost of Business Grant) for 2024, which entails once off payments to 193,000 businesses, has increased to €257 million following the release of Budget 2024. However, even with these grants, businesses are still struggling to meet ends when it comes to covering the many bills they incur.
Dublin’s “All my Friends” pub, based in Smithfield is a prime example of the struggles associated with running a small, independent business in the current Irish, commercial environment. The pub opened its doors in the summer of 2022, and less than 2 years following, closure was announced due to the ‘punitive tax system’ as described in their statement, highlighting the ever-increasing costs of running an independent small business in Ireland. Kale + CoCo, another favourite in the Stoneybatter area, closed its doors in December due to similar financial constraints. As reported in the Irish Independent, “Nowadays, it’s not enough to just be a cafe”, with “so little reward”.
Following the Government debate on 14th February, these increasing costs were noted as Accountancy Ireland recommended a limited increase in the minimum wage due to the increased costs of doing business and inflation. The increasing financial pressure on SMEs is hard to narrow to one specific area. The issue is not unique to Ireland, with many global geopolitical factors at play: shocks to supply chains following Brexit and the crisis in Ukraine are namely impotent, with global circumstances taking their toll on markets across the globe.
SMEs facing financial difficulties are inevitably raising consumer prices to meet ends’ need, but naturally the overall inflation rate is taking its toll on the economy. The public are now much more aware of their spending habits and their role in keeping businesses flowing, yet increased selling prices are taking their toll on demand. As a college student, a notable change we can all vouch for is the costs of a cup of coffee and a pastry. Two years ago, friends and I would regularly treat ourselves to some of our favourites, most often comprised of small, independent coffee shops. In the last few months however, this has not been so economically feasible. These small, generally family-run businesses have unfortunately had no other choice but to hike up prices, and the tangible impacts on daily expenses, like the rising cost of coffee, underscores the urgent need for comprehensive solutions to sustain the vital ecosystem of small, independent businesses in Ireland.
The precarious landscape for small businesses in Ireland mirrors global inflationary challenges, and while the ICOB grant increase offers some relief amongst other actions taken by the government, it falls short of addressing the broader economic issues to which are harder to control. Geopolitical factors, supply chain disruptions, and inflation are just some of the difficulties for SMEs in Ireland today, prompting price hikes that impact consumer habits.
From a corporate perspective, transition risk encompasses the uncertainty surrounding the pace of achieving carbon neutrality. On a broader scale, EU nations aspire to become the world’s first climate-neutral economy and society by 2050, as outlined in the Paris Agreement. Advanced economies must reduce their CO2 emissions from 8.8 to 3.8 tonnes per capita by 2030 to stay within the 1.5°C threshold. Yet, the current trajectory suggests a perilous 3°C increase in global heating. Aligning portfolio structures with evolving EU policies is crucial for financial institutions as they navigate the imperative shift toward a low-carbon economy. This transition holds the potential for substantial ripple effects on financial systems, prompting sudden reassessments of assets.
The European Central Bank has heightened regulatory measures, compelling financial institutions to disclose climate risks as per the 2023 directives. As such, increasing scrutiny will place growing pressure on portfolio managers to adjust their portfolio exposures. Non-compliance with the new regulations, resulting in a failure to disclose climate information, not only signifies a breach of EU law but also triggers supervisory action. Furthermore, with an expected surge in the size of the wealth management industry due to demographic shifts and rising consumer demands for increased investor involvement in promoting sustainable business practices, financial institutions must reshape their portfolio compositions to contribute to a carbon-neutral world.
In the realm of financial stability, long-term institutional investors play a pivotal role in the recalibration and redistribution of carbon transition risks. Mitigating the escalating threat of natural disasters is facilitated through the utilisation of hedging instruments, such as catastrophe bonds. Additionally, various financial tools, including green stock indices and green bonds, emerge as valuable mechanisms for redirecting investments towards environmentally sustainable sectors. Furthermore, the world’s excessive dependence on oil, primarily sourced from politically unstable authoritarian regimes, presents a compelling case for the urgent redirection of funds towards renewable energy sectors. Historical patterns reveal that hikes in oil prices frequently precedes recessions. To bolster stability in the financial sector, a strategic shift away from investments tied to oil holds significant benefits.
The green economy opens a world of opportunities for investors. Climate change, with its far-reaching impact beyond the EU, underscores the need for a global approach. If the green transition remains confined solely to Western nations and China, projections suggest that by 2050, South Asia, Southeast Asia, and Africa could contribute to a staggering 64% of global emissions. This scenario makes the achievement of Paris Agreement goals virtually impossible without substantial investments in green technologies within emerging markets. Notably, a mere 14% of green investments in these burgeoning economies are privately funded, in contrast to the 81% in developed nations. This evolving market, coupled with innovative investment instruments, provides a fresh avenue for investors to generate alpha returns. Simultaneously, it offers the strategic advantage of hedging portfolio risks by diversifying exposure across different global regions.
For those of us hunting for a quick respite during the lunch hours, or contributing to the all-too-familiar hot honey craze, Bambino has become a household name amongst the Dublin food scene. Known for their quick, by the slice service, the shop has gained a favourable reputation amongst Dubliners for its unique flavours served on a white, paper plate.
TBR’s Editor-in-Chief Sean Smith spoke with Nick DiMaio, co-founder of Bambino, to learn a little more about the pizza joint’s history and the business model that made the shop so successful.
Bambino’s Story: A String of Events
Bambino’s start-up is an untraditional one. Being born in the United States, Nick was no stranger to the New York style slice shop. Moving to Ireland in 2001 to pursue a career in the restaurant industry, with the birth of Dublin favourite Token under his belt, DiMaio would “beat the 3PM slump by getting a pizza slice in any one of the pizza slice shops that were available back then – usually DiFontaines”, sparking a dormant idea for a market in quick-serve pizza.
Fast forward to 2020, this slice shop concept began to materialise. During the pandemic induced lockdowns, Nick met up with a few friends via Zoom, where he got talking with Shane Windrim, the eventual co-founder of Bambino. The two chatted about the potential for a slice-shop in Dublin, and with Shane’s background in fine-dining, the pair started generating inspiration for a future storefront.
A year later, Nick received a message from a friend with a photo of a piece of paper saying ‘Manager/Business Partner Wanted – Must Have Experience Running Business”, prompting DiMaio to pursue the vague offering out of curiosity. Much to his delight, Nick soon learned the vacancy appeared for a unit on Stephen Street, near facilities he previously owned. With no particular inspiration for the space at the time, Nick viewed the property and it hit him: “…there was a brick wall immediately to my left when I entered the premises. In 5 seconds I said to myself – this is a slice shop. I had seen that brick wall before in so many pizzerias I had been to in my lifetime. It made so much sense. I was in the unit for about 10 minutes, and I had mapped the place out.”
Shortly thereafter, Nick phoned Shane to pitch the idea. The two were sold, preparing the facility for operation and opening toward the latter half of COVID regulations. Facing adversity, as most small businesses during the pandemic did, the pair were met with challenges during construction and denied a startup loan due to the ‘volatility of the hospitality industry”. Nevertheless, Nick and Shane opened the shop and have not looked back, amassing a swiftly loyal customer base.
A Slice Worth Eating: A New Operating Model for Pizza
Acclimating the Irish market to a slice shop model was not an easy feat, as traditional clientele are often used to full pies in a restaurant setting. “Initially the idea of grabbing & going/eating at a ledge, no bookings, no cutlery, 1 slice of pizza for €4-6, not being ‘full’ after one slice, was a bit foreign to people” DiMaio affirmed. “I think people have gotten used to us, and what we do. Even for us, if we wanted more of a restaurant style pizza experience, we’d definitely just go to an actual restaurant.”
With such a new operating configuration comes inherent obstacles. Nick cited issues like minimising wait times and handling queues out the door, as unlike their New York counterparts, “Our customer base probably wouldn’t wait outside, especially as it’d more than likely be raining”. As with any SMB, uniformity and a consistent product regardless of customer foot traffic and staffing is a prime goal that the team is striving to cultivate.
On top of massive demand, Bambino has faced no exemption from the rising costs faced by Dublin businesses at present. While mentioning that the shop’s electricity bills surpass their rent at times, DiMaio maintains an optimistic perspective: “Inflation hasn’t affected us too much, which is why we haven’t raised our prices other than 25 cents per slice to accommodate the recent VAT rate increase…Perhaps it’s positively impacted our sales because what we’ve remained consistent with our pricing as pints, coffees, and other takeaway items have increased quite drastically over the last couple years.” A point of disruption however has presented itself in the form of supply chain issues, as Nick recounted a time when the type of tomato used for Bambino’s renowned sauce became unavailable. The team had to think on their feet, altering their sauce profile with other tomatoes, highlighting their growing concern over consistency.
A Cult Classic: From Tattoos to Tik Tok
Despite any operative challenges, the Dublin food scene has welcomed Bambino with open arms. DiMaio credits the shop’s high customer loyalty to its basic, convenient nature: “It’s just very easy to be a regular customer of ours – the slice is cheap, the wait isn’t too long, there’s a buzz outside the shop, and the quality is high, so we can kind of see how we’ve got a strong following.” Yet despite a convenient customer experience, Bambino has amassed a cult following, with a dozen loyal customers getting the iconic cupid logo tattooed; the owner of the inaugural tattoo received free pizza for life, with subsequent “copycats” as DiMaio puts it receiving a t-shirt and voucher.
In spite of a buzzing consumer base, Nick cites that this is not as a result of the shop’s social media presence. “We are, admittedly, crap at social media and marketing. What we do was always going to be a challenge,” DiMaio said. “We’ve been open for a year and a half and have only posted 40 things, most of which show me holding a slice in one hand and taking the photo with my phone. As before, we want the pizza to speak for itself”. Instead, external promotion has been a substantial driver for Bambino, with the Irish Times and Independent calling the slices the best pizza in Ireland and guests sharing their slices across different social media outlets. Nick even shared his delight at the shop’s Tik Tok fame, admitting “The Cassie Stokes segments where she interviews people in the food industry who have often said Bambino is the best pizza, went from flattering, and then transitioned to hilarity as repetitiveness set in and the memes began. The meme of the microphone being held up to the hole in the beach in Portmarnock with a speech bubble saying ‘gotta be Bambino’ was 10/10.”
For the Bambino cultists among us, fear not; DiMaio hinted at 2024 being a year of growth for the shop and its operations. At present, Bambino has just finished up a refurbishment of their kitchen facilities to streamline its pizza-making. Nick also exclaimed an expansionary project in the works, one that will “See us prepare our dough in a new space with a temperature controlled environment, that will also serve as a small restaurant for whole pies & pitchers of beers with its own slice shop element.” With almost two years of slices achieved, Bambino has solidified itself as a Dublin staple, and we join DiMaio in his excitement for a future full of Hot Pep slices.
When envisioning modern piracy havens, the Red Sea often comes to mind, fueled by the infamous Somali pirates depicted in “Captain Phillips” and, more recently, the Houthis’ pirate-like activities. Yet, there is another, lesser-known region that poses a threat to the global supply chain and shipping industry—the Straits of Malacca in South-East Asia.
To understand the scale of the pirate attacks we must first understand the importance of the region. It shares the same economic importance that can be seen in The Red Sea. It has been in continuous use since antiquity from Roman, Chinese, Indian, and Dutch traders harnessing the natural canal. Today, a third of all worldwide trade traverses through the straits. This accounts for $3.5 trillion of US global trade, two-thirds of China’s maritime trade volume, and 40% of Japan’s maritime trade. By 2030, shipping traffic is expected to exceed the strait’s capacity. Any prolonged disruption can have a big effect. The gadgets we use have their components manufactured in East Asia so long-term disruptions might result in shortages in the West which would not just impact tech companies but also consumers eager to set their hands on the latest gadgets. Moreover, despite East Asian countries relying more heavily on the straits for their energy needs than the West, global oil prices are intricately linked. Any disruption would cause fluctuations in global oil prices.
There are various factors that allowed piracy to flourish in the straits in the first place. It was culturally accepted with the tradition of piracy dating back centuries. The favourable geography allowed for low-risk detection as the straits forced commercial ships to be closer to the coastlines. The law enforcement was underfunded, and some even collaborated with the pirates due to poor wages. This all changed in 2004 when a multinational approach was pursued with Singapore, Indonesia, Thailand, and Malaysia cooperating to curb piracy. It was effective as from 2015 to 2018, there was a 92% drop. However, it may be on the rise again with sources differing in statistics. The ReCAAP ISC reported 41 incidents between January and June while the International Maritime Bureau released its annual report that highlighted that the straits have become an area of concern with a reported 37 incidents in the entirety of 2023. Nevertheless, it is a worsening trend with other reports revealing that the attacks are getting more violent.
Diverting shipping is one countermeasure. But it would extend voyages by an estimated 4,600km & spiking expenses by 20%. Indeed, with the current events unfolding in the Red Sea, the journey around The Cape of Good Hope adds a further 26 days. This can be further exacerbated by the International Maritime Organisation’s recommendation to have ships speed up through danger zones as pirates normally target easier slow-moving ships. However, it would remain expensive, for instance, it would cost a super-tanker $88,000 per day in added fuel consumption if it increases its speed from 15mph to 20mph. Vessel owners are usually commercially minded, if the cost of rerouting is high, they are unlikely to do it. Additionally, shipping companies are forced to install CCTV and other preventive measures on board their vessels especially since the pirates in the straits are reported to be using advanced technology such as radars and global positioning systems to gain information and allow them to target larger vessels.
Regardless, cost-effective alternatives are unavailable. Insurance companies encounter key challenges in piracy zones, encompassing cargo, hull, ransom, and war risk.The latter is intriguing as during the peak of the piracy dilemma in the early 2000s, the straits were labelled as an area of war risk by insurance underwriters at Lloyd’s of London. It led to an increase in insurance premiums and shipping companies were forced to pay this enhanced risk. They were expensive with the average premium increasing from $500 to $150,000. In some instances, shipping companies tend to cover the losses out of their own pocket instead of reporting the incident as it could result in their insurance premiums increasing as well as facing long delays due to government investigations. Shipping companies will also be faced with the prospect of paying ransoms. During the height of the crisis, more than $1 million in ransom was paid in 2005. If the trend continues, we may see a repeat of this fiasco.
Regional nations must sustain collaboration to curb the escalating piracy trend in the straits and prevent further exacerbation of the situation. In the bigger picture, both China and the U.S. have been growing their power in the region. Uncontrolled piracy could provide a pretext for major powers to escalate competition in the straits, potentially heightening tensions and leading to more severe consequences. Similarly, this can be seen in the Red Sea with the U.S. and Iran, any threats of a commercial sea passage may increase geopolitical tensions and further shape the global market dynamics. Imagine the calamity that will be faced if both the Red Sea and the Straits of Malacca have been rendered unviable.
Exploring financial support, transformative experiences, and insights for aspiring scholars.
Petro Visagé
Laidlaw is an unparalleled scholarship initiative financing both research and leadership development for undergraduates with a vision to shape them into global citizens and future leaders. Surpassing €7,000 in total, the financial support extends to additional funding for training sessions, travel grants, and project expenses. This immersive experience cultivates indispensable skills transferable to project management, leadership, communication, and teamwork. Guided by experienced academics, scholars embark on original research projects and partake in a distinctive ‘Leadership-in-Action’ experience. Moreover, integration into an esteemed international Scholar group provides not only a network of like minded students but also profile-raising opportunities, enriching the overall academic and professional journey.
With the application deadline fast approaching, our TBR editors thought it fitting to interview Olamide Obadina, a current Global Business LaidLaw Scholar, to gain her insights, advice and experience with the programme to highlight its opportunities in the business sphere.
“Receiving the Laidlaw Scholarship truly empowered me to conduct research in an area I am genuinely passionate about. I focused my research on gender, racial, and cultural diversity in the C-suite. This is a topic that affects so many women globally and will affect me personally as someone coming from a minority background.” Obadina continued to explain that the opportunity has enabled her to gain a broader perspective of the topic and to learn from some of the best in the industry. She was able to explore the challenges women of diverse backgrounds face and how they overcome them. The experience further empowered her to present a research project sharing her findings with others that may be experiencing the same thing she did.
Key Opportunities:
The programme provides opportunities to further develop leadership skills including:
Training sessions:
As part of the programme, scholars attend leadership development training sessions including an Ethical Leadership online workshop with scholars from the UK, Canada and USA. Sessions focus on crucial skills such as project management, ethical conduct, communication, teamwork, resilience, and cultural awareness. Obadina highlighted the training’s value in enhancing her communication and presentation skills, with her cohort participating in engaging public speaking workshops led by an acting coach.
Networking
Laidlaw offers the opportunity to join a global network of scholars through the programme’s dynamic online platform and impactful in-person workshops and conferences. The Laidlaw Global Conference particularly stood out to Obadina. The conference brings scholars across the globe together and features unique networking opportunities and panel discussions. It further provides a platform to interact with a diverse range of individuals, allowing for the sharing of research projects and ideas. This engagement creates a sense of community, which is especially important when undertaking independent project work.
Leadership in action
In the second summer of the programme, scholars engage in a ‘Leadership in Action (LiA) Project’ to apply leadership skills to real world challenges. For the project, scholars have the opportunity to travel abroad and work to improve the lives of people in a community of interest. The project empowers scholars to take ownership of a project, stress-test their leadership skills, gain a deeper understanding of global citizenship through exposure to diverse cultures, and contribute to tangible positive change. This may involve applying their own research or collaborating with NGOs, non-profits, or social enterprises. According to Obadina, the projects vary a lot; some resemble internships within organisations, while others involve hands-on physical projects. Numerous projects are located in Central Africa, offering opportunities to contribute to community fairs and uplift communities in various ways. Similarly, there are diverse projects in South America, including Peru and Colombia, providing a range of options based on individual interests and learning goals. “And what I love about it is that everything is contributing to a better, contributing to a better society, which makes you feel so privileged to be a part of a project that’s actually impactful,” Obadina explains.
Applying:
The initial application consists of an online application form, a proposal for a research project in Summer 1, a proposal for a Leadership-in-action experience in Summer 2, a Leadership statement video and finally, a letter of support from the proposed supervisor(s).
Thereafter, applicants undergo a formal interview. If successful, applicants must draft an 800 word proposal for the research to be done in summer 1 and the potential challenges they may face.
Advice for applications:
Finding a mentor:
Obadina explains that finding a mentor/supervisor is one of the hardest obstacles. Her strategy was to make a list of potential mentors in the area. She listed all her lectures, all the subjects she had chosen, and then all the subjects that could relate to her research. Obadina then emailed each in turn explaining the project and research. Interestingly, she noted that many professors may be unfamiliar with LaidLaw, so be prepared to explain the programme’s aim. While Obadina successfully found her mentor with this strategy, she urges applicants that may be struggling to leverage LinkedIn; “I’m sure you have a connection and can connect you to someone who could be your mentor. Really leverage your personal network. I think that’s something that you should do every single year. I love that you’re actually doing that for Laidlaw, because personal connections have been so incredible in pushing my research.”
Choosing a topic
Obadina advises applicants to choose a topic they are genuinely passionate about. “When I did my interview, you could see how passionate I was. They know when you genuinely care about the project and that’s so important because that’s what’s going to motivate you to keep doing this independently over summer.” However, ensure that the research can have a significant impact. “There are a lot of topics you could research that you might be interested in, or they relate directly to your life, but maybe in terms of creating a research project, they don’t really transfer to everybody else,” Obadina continues. Thus, the key is striking a balance between personal interest and generalisable, relevant impact.
Drafting the application:
It is imperative to be clear and concise, Obadina explains: “Know exactly what is going to come out of your research. Be clear about the type of leadership and action projects you want to do in year two. Be clear about potential challenges that you might encounter. Be clear about what you want to gain from the space. That’s something they will really look for. As a person, what do you want to gain from this? What do you really care about?”
Obadina’s experience:
For Obadina the experience has been beyond rewarding. When asked about her experience she emphasised two main highlights: the global exposure and the growth.
Through the annual Laidlaw Global Conference, Obadina was able to find a community of passionate scholars from across the globe, each with their own fascinating research to share. The opportunity also empowered her to interview inspiring women in reputable roles; from entrepreneurs to executives from Canada, the U.S., Malta, France, the U.K. and more.
To Obadina the most rewarding part was how much she learned from the interview process. She loved hearing stories from people that were mistreated in the C-Suite and how they overcome their challenges in the workplace. The experience also gave her exposure to many different industries and how systematic barriers differ across sectors. She further noted significant personal growth through the experience, as in facing many setbacks throughout the process, Obadina learned to be flexible and adaptable in her approaches and to set realistic goals for progress.
The experience further enabled Obadina to discover just how passionate she truly was about the topic. “I always knew I was interested in diversity and inclusion, but when you’re actually doing your research, you realise, wow, this is something that I really get here, something I’ll be able to pursue a career in, something that I could do my research in. It gave me a really good view of where I could take this long-term.”
The deadline is 12:00 Noon, 12th February 2024! Be sure to apply!
Advice to successful candidates
“Approach it with an open mind. At this point, you’ve picked your topic, you’re probably really excited about what you want to do and you’re probably going to plan out everything and make preparations. I would say do that, it’s amazing, but also accept that it will not always work out that way. And that’s not something negative. I actually see it as an opportunity to pivot. Being flexible and adaptable is going to help you when you solve problems in the future. Don’t overthink it, you’ll learn as you go.”
Trinity Business Review 