Smaller firms upbeat on 2007 outlook

MORE than a third of Irish small to medium enterprises (SMEs) are feeling upbeat about their prospects over the coming year, with 38% of them fully expecting to increase investment and employment during 2007.

Respondents to small firms lobby group ISMEs fourth quarterly business trends survey — which was published yesterday — said that business costs, particularly wages and energy, remain the number one concern. They also claim that the imminent increase in the minimum wage and hikes in electricity prices and local charges will negatively impact on SME performance next year. The continuing erosion of competitiveness and increased bureaucracy and regulations were also highlighted as an ongoing negative factor.

Said ISME chief executive Mark Fielding: “In a week when small business has been assailed by ICTU’s attack on the improved Business Expansion Scheme and the announcement of a 13% increase in the National Minimum Wage, the latest ISME Quarterly Business Trends survey confirms that SMEs are, in general, confident about their prospects in 2007, with encouraging figures reported on investment and employment.”