Half of SMEs now ‘stable and growing’

Just under half of smallbusinesses are now stable and growing, which is the highest level since 2008, according to InterTradeIreland’s Business Monitor for the three months to the end of September.

“Figures indicated that almost nine out of 10 businesses are either stable (43%) or growing (45%). This is the highest percentage of firms reporting to be in growth mode since the recession began and is almost double the number of firms in growth mode compared to this time last year (26%),” said the report.

The business monitor found that 12% of firms started increasing staff levels in the third quarter, which is up marginally from an 11% increase in the second quarter. There has been a 10% increase in profitability from the second quarter, with 59% of firms reporting an improved outlook at the end of September.

The construction sector is the most optimistic when it comes to undertaking investment with 35% of construction firms indicating they are less cautious about investment than a year ago.

“Up until now, the recovery has been driven by exporters and larger firms but significantly, we are beginning to see an upturn in domestic demand, which is now benefiting businesses that rely on the local market.

“The increase in growth in the third quarter reflects a continuing broad-based recovery, which has now translated across every sector surveyed.

“The growth is also filtering down to smaller firms, most of whom now have a more positive outlook,” said InterTradeIreland strategy and policy director Aidan Gough,