Business owners say main barriers to growth include costs, lack of time and skills, highlighting the need for SMEs to embrace digitalisation to stay ahead.
Press Release
InterTradeIreland’s latest All-Island Business Monitor paints a broadly positive picture with 37 per cent of businesses saying that they are growing, 53 per cent stable, and 6 in 10 reporting that they are profitable.
However, challenges around costs and access to people and skills persist. Issues such as cash flow and demand are also beginning to creep up this quarter. This is contributing to an overall sense of uncertainty and potentially dampening the appetite for investment.
The findings of the survey, which takes the temperature of 750 SME owner/managers across the island, shows that sales performance, which is the nuts and bolts of doing business, remains positive across the wider business economy. 30 per cent reported increased sales this quarter and over a third of all firms surveyed are expecting sales to grow over the next six months.
The largest challenges for businesses remain the high costs of energy and other overheads which have their roots in wider economic and geopolitical issues.
InterTradeIreland’s Director of Strategy, Martin Robinson said:
"There are also certain concerns that are coming into sharper focus in the third quarter. While these are not yet causing sleepless nights for business owners, they have increased in importance. Emerging issues reported include business and consumer confidence, cash flow, access to finance and demand for goods and services. Together, these could subdue investment intentions.”
When asked about investment, seven out of ten businesses said they had no plans to increase employee numbers, upgrade new plant or equipment or invest in IT over the next 12 months. One in four SMEs reported that the biggest barrier to growth is actually finding the time to focus on it. The survey also shows that access to skills is a real pinch point for firms. Businesses are indicating that not having enough people is putting them and their existing staff under pressure. Both these factors combined mean that there’s limited room for business owners to think strategically about their growth plans.
Martin Robinson comments:
“Increasingly we would encourage firms to seek support from agencies across the island, including InterTradeIreland that can work with them to embrace innovation to plug skills gaps and improve productivity. It may take time up front, but in the longer run it will accelerate your business growth.”
Business Consultant, Garrett Harty who works with companies in Co Antrim and often directs them to InterTradeIreland for assistance says:
“These findings don’t surprise me. Many of the business managers that I work with are very time poor and are looking for practical solutions to solve challenges around productivity or smarter ways to bring more people into the business that can focus on sales.”
The survey also asked businesses how they have adapted to the trading conditions post-Brexit. Encouragingly, there are signs of improving knowledge of the Windsor Framework and its requirements for businesses.
Last quarter almost half (49 per cent) of those who told us they remain impacted by the UK’s exit from the EU said they had no knowledge about the requirements of the Windsor Framework, this per centage has now dropped to just over a third.
Businesses in the construction sector across the island are most likely to say they have some level of knowledge of requirements.
Economy Minister, Conor Murphy said:
“I am pleased to see that awareness around the Windsor Framework is increasing. I would encourage any firms that have any questions or need more information to contact InterTradeIreland’s Trade Hub to be well placed to take advantage of the huge benefits that both dual market access and the all-Ireland market provides.
Earlier this year to help address some of the skills issues raised by employers I announced a new Skills Fund of up to £12m. The Fund will support important skills initiatives, including a new Skill Up programme, developing our childcare workforce and growing the apprenticeship system.”
View our All-Island Business Monitor Findings
This infographic illustrates the findings from the All-Island Business Monitor conducted in Q3 2024.
Select here to download a PDF of the AIBM Q3 2024 infographic.
AIBM Key Findings
Every quarter we publish an in-depth summary of the All-Island Business Monitor Key Findings. Here you can read more detail and an economic analysis of our research.
