SFA confident of new year prospects

Small firms are reporting they are confident about their prospects in 2014 according to the Small Firms Association (SFA) business sentiment survey.

The Q4 Business Sentiment Survey found more than a third of business rated the environment as good or very good.

SFA acting director Avine McNally said results of the survey were the strongest figures in recent years. “Business confidence levels have shown further improvement through the final quarter of 2013. This is the strongest set of sentiment data we have seen since in a few years. The survey indicates that the economy has stabilised, the challenge is when the economy will commence to grow in a meaningful way. However, the business performance is encouraging and companies are looking to the future with an sense of optimism.”

Just under a third of firms expect their order books to improve. Exporting firms are more confident, with 39% expecting a rise in business. Only 26% of domestically focused firms are optimistic.

The biggest challenge for small firms, especially those trading on the domestic market, is the fragility of the domestic economy and confidence among consumers.