Bright outlook for SMEs in 2015, survey finds

Roughly two-thirds of SMEs will expand and invest over the next year, according to the Small Firms Association.

In its annual survey, the SFA found that 66% of businesses are growing; 28% of them are maintaining their business at stable levels; and 6% state that they are still seeing a decline in business.

Regarding the broader economy, the results of the survey show that there will be a big increase in investment in 2015.

Of the 867 respondents to the survey, 72% said that they will invest in their business in the next 12-24 months; 20% are unsure; and 8% do not plan further investment at present.

“We predict that 2015 will see strong growth remain in the economy in the order of 4% to 5% GDP growth. 2014 saw the initial green shoots from the cities, spread gradually throughout all regions and towns throughout the country.

“Broad-based regional economic growth must be a priority focus in 2015,” said SFA director Patricia Callan.

The key factors in improving growth prospects identified by the respondents are: having an ideal mix of technology/ people and skills (24%); further reductions in taxation on employment and business (22%); more steady growth rate in the EU (22%); greater certainty among consumers (21%); and having the optimum amount of financial resources (20%).

“Small firms have now moved from survival mode, to focusing on how they can grow their market share. Brand development and marketing are key parts of this strategy and hiring and retaining the right people is already emerging a problem in many sectors, particularly in IT and hi-tech sectors.

“Owner-managers are now focusing on upskilling themselves and their teams to gain competitive advantage,” said Callan.

However, a separate survey by ISME showed that satisfaction with the Government faltered towards the end of last year.

The results show that the overall satisfaction level with the government from SME owner-managers has improved in the last two years.

However, in the final quarter of 2014 the figures have decreased 2 points, from -4 to -6.

SMEs are most satisfied with the Government’s performance on the jobs front, with a 17-point increase from -9 to +8, but least satisfied with their control over business costs, which now stands at -60.

ISME has called on the Government to tackle high business costs and to make improved competitiveness its priority for 2015.