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ONLY 30% OF businesses on both sides of the border said that they were in “growth mode” in the second quarter of the year.
The percentage of SMEs expanding fell from 37% in the first three months of the year, according to a report by cross-border business group InterTradeIreland.
While the fall was more pronounced in the North, InterTrade warned that “firms across the island are reserved about the employment and sales outlook over the next 12 months”.
The president of the lobby group said that the business environment remains relatively fragile despite recent gains, and pointed to several factors that could be responsible for the dip in growth for some companies.
Dr Eoin Magennis said: “Although the growth figures are much stronger than 12 months ago, the dip in the number of firms experiencing growth this quarter aligns with findings from other economic surveys.”
This could be related to external factors, such as weak growth in the Eurozone market, or to the increased speculation about a rise in interest rates. Businesses also remain concerned about cost inflation and the linked and growing issues of cashflow and late payments.
Recovery
Despite the difficult environment, Magennis said that there are still signs of a broad-based recovery across the island, pointing to the fact that 11% of firms reported an increase in staff, with 37% of businesses surveyed tracking an uptake in sales.
Just under 70% of businesses plan to invest in their business in the next year, with marketing and staff training the most popular resources to invest in.
Export hold-up
Almost one in five businesses said that they have a product suitable for export, but don’t sell on both sides of the border, or in other markets.
The main factors holding back export were a lack of time or resources, the costs associated with entry into new markets, a lack of internal financial resources and a lack of awareness of available supports.
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This government is taking so much of disposable income in tax it no surprise small business is going under,
The fear of what will be in the next budget is also preventing people from spending. Very difficult for SMEs to survive in these conditions let alone grow.
A dip in the Germany economy as well as other Euro states spells out its own message. Small business in Ireland has never fully recovered from the crash if six years ago and it’s evident there might well be more bad news. There is still no credit available, no movement outside of Dublin on house prices and unemployment is still unacceptably high. Government spin won’t correct anything or help to resolve the present difficulties. We need radical thinking……..
I think we need to return to properly reporting GNP instead of just looking at 1 quarter of growth vs 2 negative. Then we will see what the mess really is.
Do tell us your radical thinking George, by any chance would it include stop waiting for others to provide jobs and employment and get up off your rear end and do it yourself, or is this far too radical for the intitlement generation.
Dear Richard
No, sorry, I have no magic or radical wand to wave myself. I do not profess to be a politician, merely a member of the public making a comment on a range blog. I do think however that for the most part people on “entitlements” would be happy to get off their arse and create their own jobs if that were feasible. But it is not. And some people have not the wherewithal to do this, that is not to say they have no place in society, they just want a job which they can fulfill. But perhaps you have your own radical plan that might elevate people off their arse? Please do tell…..
RADICAL THINKING INDEED,GET TO F*CK OUT OF THE EUSSR.
I dont mind telling you George, in the early eighties we had a similar economic slump, under pressure with a new mortgage and no job, that’s when I decided i had to take radical action, and without any state handouts i went solo and set up my own business,30 years later I’m still happy doing it, mind you i was never short on motivation and effort.
I applaud you Richard. If everybody were the same there would of course be no problem. I too found myself in a similar situation and had to get about my own business. But let’s not loose sight of the above article. Lots of hard working small business owners are just scraping along ( I spoke to one woman last week that reckoned she was only paying herself a fiver an hour! ). The Midlands of Ireland is devastated. …Small shops and pubs have been struggling for years now. It’s depressing. VAT, commercial rates and huge utility bills are crippling for a lot of people. I’m simply looking at this and wondering what could be done to help.
Radical thinking from this government was to put Pat Rabbitte in a new suit.
A new government is needed to change things, but the list of alternatives is thin and depressingly familiar.
This is all part of the dead cat bounce. We have seen some growth (or recovery to use a better term) from the very very low base we ended up at. With stagnation in Europe there will be very little room for us to manoeuvre upwards of our own accord. There will be many years of flattened economy ahead and not just for Ireland but the world over.
They take money out of peoples poackets – and wonder why there is no growth – or very little – and compared to what year – last year – 2007 ??..
It will e near impossible also to reduce unemployment – as there is so much automation / computerisation / A.I. – But I am sure facts will notget in the way of the govt of day massaging figures – and there is Jobs bridge , zero work contracts , unpaid employment – - no problem at all to show unemployment falling – as will incomes .
I think this idea of people getting up off their rear ends and sorting themselves out is far too simplistic. There certainly is a culture of dependency out there but surely it isn’t naive to believe that most unemployed people would take work if they could get it? Most people aren’t actually dossers.
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