Some 60 per cent of small companies expect their business to grow in the next year, according to a survey by the Small Firms Association (SFA).
The SFA’s Business Sentiment Survey for April-June indicates that the majority of these firms will focus on international markets to expand business.
The results also show that 24 per cent of respondents rate the current business environment as either “very good” or “good”, while 41 per cent believe their own level of business is either “very good” or “good”, up 2 per cent from the previous quarter.
SFA director Avine McNally said while the business environment remained challenging, performance has been encouraging and companies were looking to the future with “an increasing sense of optimism”.
The survey found 32 per cent of firms noted that their business was maintaining its current level of activity, while just 4 per cent felt their business was in decline, a figure which has dropped since the second quarter of 2012.
“While Ireland [may] have made significant progress in recent years, challenges remain,” Ms McNally said. “A weak domestic economy, high business costs, low consumer spending and ongoing uncertainty in Europe are huge challenges.”
The report also says 80 per cent of the firms surveyed said they would invest in their company within the next two years, with the majority of these saying they would spend on IT systems, staff development and brand development.
Ms McNally said: “Many are investing in the expectation of new orders, increased market opportunities, increased customers and economic recovery.”
Those surveyed also said finding new customers for existing products, developing products and adopting more modern marketing forms were top priorities in the coming months.
