Things on the up ‘for most SMEs’

Most small to medium-size enterprises have seen their turnover either increase or remain stable, according to the Red C survey of SME Credit Demand in Ireland.

The survey, on behalf of the Department of Finance, involved over 5,000 direct calls to SMEs. Some 74% of respondents reported that turnover has increased or remained stable.

Finance Minister Michael Noonan said that the health of the SME sector was vital for the recovery of the national economy.

“The results... show that trading conditions are improving for Irish SMEs with 74% (up 2%) of companies surveyed responding that turnover has increased or remained stable, 23% (up 2%) responding that they have increased staff numbers, with the proportion of profit-making businesses increasing from 48% to 51% over the survey period.

“I am heartened to note that there are further signs in the survey results that confidence is growing among SMEs and their customers,” Mr Noonan said.

Although 45% of companies reported they did not believe that banks were lending, this had declined from as high as 61% in September 2012.

“The belief among respondents that the banks are lending to SMEs continues to grow, standing at 55%, up from 51% in September 2013 and 39% in September 2012. This is encouraging but the banks need to ensure that this belief is matched by corresponding lending to viable businesses,” Mr Noonan said.

The survey did reveal that a huge number of SMEs were unaware of supports available to them. Only 6% of SMEs that responded had heard of the NPRF funds.

“I am disappointed to see such a low level of awareness of the Government supports available to small businesses. However, I am confident that the ‘Supporting SMEs’ online tool, available on my department’s website, will prove to be a crucial resource for SMEs seeking to utilise the State supports for which they may qualify,” Mr Noonan said.