Recovery in the SME sector is strengthening and beginning to extend across the sector, becoming more broad based, according to the latest quarterly business trends survey by the Irish Small and Medium Enterprises Association (Isme).
The survey of more than 1,044 businesses showed positive trends in 8 of the 12 key indicators, including a 12 point rise in sales expectations. More than 40 per cent of businesses expect an increase in sales, while 33 per cent expect an increase in profitability.
While business confidence and expectations have experienced an upwards surge, Isme said a note of caution must be acknowledged as future employment and export expectations have both experienced decreases.
Isme chief executive said the results are a positive sign of economic improvement for SMEs but warned the Government cannot afford to be complacent.
“In this ‘year for jobs’ it is worrying that SME owner-managers, who employ almost 70 per cent of the private labour force, do not see a major increase in hiring levels in the coming months,” he said.
He said it is imperative that the upcoming Budget introduce real reforms and initiatives that make it profitable for SMEs to hire new staff.
The survey was conducted in the last week of September with 1044 SME respondents. Some 52 per cent of the respondents employ less than 10, while a further 39 per cent employ between 11 and 50 and the remaining 9 per cent employ between 51 and 250.
