"The Sterling factor has really rammed it home," he said. "There's no incentive in the border area to invest in the retail trade because of the fluctuations of Sterling."

He's been in business for nearly 30 years, so he was trading during Ireland's last recession in the 1980s as well as in other difficult times.

“We always sort of managed," he said. "I don't know how we managed but we always managed to come through. You learn to fight against it." He said he felt sympathy for people who started in business more recently and did not have experience negotiating leaner times.

The downturn in construction is among the larger economic factors that has had a local impact, he said.

"When the Celtic Tiger was roaring at its loudest we could only hear a whisper in Donegal," he said. "As soon as there was a downturn in the economy, the first county hit and hardest hit was Donegal."

But he also said that before people complain that groceries are more expensive in the south than they are in the north they need to look at overhead costs. Those are dearer in the south as well, he said. "The consumer watchdog is not comparing like with like," he said.

For example, he said electricity was up to 20 percent higher and waste collection up to 35 percent higher. Minimum wage is higher too, "but I'm not taking away from minimum wage," he said. "Anyone working will tell you it's too low."

Still, when you add it all up, "the cost base of running a business in the republic now has just gotten so high in comparison with other parts of Europe," he said.

And he said that Donegal will not have the economic safety net that may be found in other parts of the country as it moves into the anticipated recession.

"When the rest of the country was moving toward full employment, Donegal never saw that," he said. "We didn't ride the crest of the wave when the tiger roared."