SMEs 'optimistic' despite Covid impact on revenues

SMEs were closed for an average of 18 weeks last year due to the coronavirus pandemic.

More than 70% of SMEs saw a drop in revenue last year – with nearly a quarter seeing turnover fall by more than half - due to the impact of the pandemic, according to the Central Statistics Office (CSO).

SMEs responding to the CSO’s latest Covid business impact survey said they were closed for an average of 18 weeks last year.

Nevertheless, a survey by the Small Firms Association has found that 55% of its members are optimistic about their prospects and feel the business environment is improving. 

That percentage is up from 35% last summer.

More than 70% of responding SMEs reported a decrease in turnover in 2020 compared to 2019https://t.co/4T0XPJzAb9 #CSOIreland #Ireland #COVIDIreland #BusinessImpact #Business #IrishBusiness #BusinessNews pic.twitter.com/GZJqJzFly1

— Central Statistics Office Ireland (@CSOIreland) June 3, 2021

“Despite the challenges faced by our small business community in early 2021, business owners and entrepreneurs are confident for summer 2021 and the second half of the year,” said SFA director Sven Spollen-Behrens.

“Domestic economic growth continues to be identified as the primary driver of business opportunities in 2021,” he said.

He added that 70% of respondents plan to invest in their business this year with business growth, IT and brand development identified as areas of priority.

The SFA said that with renewed confidence on the back of the vaccination roll-out programme a return to normal trading in the second half of this year is “within our grasp”.