Report: SMEs see brighter year ahead

THE start of the new year has seen a year-on-year doubling in the number of senior executives in small firms looking ahead with confidence.

The latest annual business survey from telecommunications company O2 Ireland shows that 26% of senior management in small and medium-sized enterprises (SMEs) are more confident about their business prospects going into the new year, compared with just 12% going into 2009.

The improvement has been attributed to the feeling that the worst of the recession is over, even though the vast majority of small firms feel the recession is yet to bottom out.

“The study finds that while companies continue to face serious challenges – in terms of sales, cash flow and competition – there appears to be the start of a recovery in confidence levels,” commented O2 sales director Alan Brown.

There was also good news with regard to sales outlooks. Going into 2010, 34% of Irish SMEs expect revenues to rise this year, compared to 24% last year, when 36% expected revenues to fall. However, on the jobs front, things remain muted. This year’s survey found 17% of firms expect to increase employment levels this year, up marginally up on the 15% who gave the same answer last year.