Half of Irish companies downsizing or struggling for survival, survey finds
Well-publicised issues including weak consumer sentiment and rising business costs are the main areas of concern for businesses, according to InterTrade’s latest research.
But its survey of 1,000 business managers also shows that one in six companies currently see themselves being in growth or expansion mode.
The survey found that as many as 70% of companies see the ongoing weakness in consumer sentiment as a major negative impact on business.
In the face of this, 38% of companies have decreased prices in recent months, meaning many are struggling to remain profitable.
Access to finance for day-to-day cash flow and cost control are also high on the concern list for companies.
Of everyday business costs, most owners view energy as a “very large issue” that needs to be tackled.
InterTrade found that companies with 50 or more employees are in better shape than those with a smaller workforce, and tend to be in growth mode.
The survey claimed firms that are exporting their goods are doing well.
InterTrade director of strategy and policy Aidan Gough said: “Those businesses which are diversifying into new products or services or entering new markets are those which are currently growing.”
He said companies looking at market diversification are nearly twice as likely to be in expansion mode than those who are only looking at the home market.
Mr Gough said: “The lesson from the survey is that we need more of these companies driving the economy’s recovery. Standing still is not an option. Continuous innovation is a core business process for successful firms.”
“The outlook is still in the balance with 50% of firms contracting or in survival mode. We are unlikely to see any significant increases in employment or growth in the short to medium term.
“However, the road map is very clear: we need more companies exporting and innovating,” Mr Gough added.
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