The latest Close Brothers Business Barometer survey of small and medium sized UK and Ireland firms has highlighted the continued positive attitude towards growth and investment , despite global challenges faced and increased costs of trading.
Positive outlook
Almost half (48%) of Irish SMEs surveyed said that they feel confident the economy will expand during the coming 12 months, with 39% expecting to see their own business grow over the same period.
This indicates the importance of funding availability, with 66% of respondents planning to improve premises, invest in new assets, whilst the obvious need to satisfy overheads remains.
When asked about the short term, economic stability was consistently felt to be the most pressing need. Other topics such as supply chain uncertainty, better access to skilled workforce and subsidised energy bills were also mentioned, whilst longer term tax cuts and lower interest rates featured too.
Barriers to growth
Energy costs remain a continuing issue highlighted by 42%, whilst concerns around cash flow were raised by 36%. With 1 in 3 also acknowledging that a business opportunity had been missed in the in the last year due to lack of available finance, the support of banks and other sources of funding will be vital.
Despite a gradual reduction in inflation, rising costs remain difficult to offset, with increased energy and supplier costs having the greatest impact. Almost 70% have also seen insurance costs rise in the past 12 months and three quarters have passed these costs onto consumers. Irish SMEs will look to remain resilient and agile when responding to price fluctuations in the coming months.
Innovation
Despite the obvious challenges , Irish businesses continue to innovate in pursuit of growth, with 42% of those questioned stating that they intend to launch a new product or service in the next year. However, almost of quarter of respondents also stated that a lack of available capital remained a barrier to executing change.
Close Brothers Commercial Finance can help businesses with tailored funding solutions. From additional cashflow, business growth or a strategic event such as mergers and acquisitions, our experts can support your needs.
Our dedicated teams provide a personalised service across the island of Ireland, providing tailored invoice finance and asset finance packages to directly meet your needs.
Methodology
*All figures, unless otherwise stated, are from a Censuswide survey conducted in May 2024. The survey canvassed the opinion of 907 SME owners across the UK and Ireland and across several industries on a range of issues affecting their businesses.
