Almost half of small firms still contracting

JUST under 50% of Irish firms remain in a state of contraction, according to a new report, suggesting that the jobs challenge facing the economy is likely to persist rather than relent in the near future.

Some 48% of Irish companies with less than 10 employees currently describe themselves as either contracting, trying to survive, or winding up; according to the latest Business Monitor from the all-island trade body, InterTrade Ireland.

The monitor, which surveys 1,000 companies across Ireland on a quarterly basis, shows that “only” 14% of firms with over 50 employees are in the same boat.

“Too many firms appear to be stuck in a rut with nearly half of businesses contracting or in survival mode.

“Small firms reliant on domestic demand, in particular, are facing the most difficult challenges,” according to InterTrade Ireland’s director of strategy and policy, Aidan Gough.

“However, for the first time in a number of quarters, we are seeing some positive signs for some business — mainly larger firms — which are reporting an increase in sales performance. This is particularly evident across the agriculture sector which may have benefited from rising food commodity prices and the recent strong cereals harvest.”

InterTrade Ireland has called on policymakers and development agencies to ensure that smaller firms are receiving the right supports to assist them in developing new opportunities and ensuring longer-term sustainability.