Medium-sized Irish businesses are more optimistic about their prospects than smaller ones, according to the inaugural meeting. Azets according to the barometer.
Ireland's business leaders are relatively optimistic about their economic prospects for the coming year, with an average score of 7.4 out of 10, making Irish businesses the most optimistic of the six northern European countries surveyed.
However, the professional services firm's survey of 112 small and medium-sized businesses across Ireland, conducted in November and December, found a clear correlation between business size and financial confidence.
Microbusinesses employing nine or fewer people scored only 3.7 out of 10, indicating that the rising cost of doing business is weighing heavily on such companies.
In contrast, medium-sized businesses employing between 100 and 249 people expressed the highest levels of optimism within the Irish business community, with a score of 7.5 out of 10.
“It is clear from the inaugural Azets Barometer that Irish businesses are primarily optimistic about the future and confident in Ireland's economic prospects. “Irish companies were found to be more optimistic than their counterparts in the UK, Denmark, Sweden, Finland and Norway,” he said. Neil HughesCEO of Azets Ireland.
“However, companies with nine or fewer employees are struggling as costs continue to rise. Double-digit increases in the minimum wage, persistent inflation, and higher taxes are putting significant pressure on smaller businesses.
“With 1,750 million euros in Stockpiled pandemic-era debt “Owed by 58,000 businesses, it is increasingly important that smaller businesses have flexibility and time to pay the tax.”
According to the survey, Irish business leaders ranked economic and geopolitical uncertainty (both 5.7) as the most important challenges on their minds, followed by talent recruitment and retention (4.9) and regulatory compliance (4.4). ).
“As enhanced furlough rights come into force and businesses face a tight labor market, it is no surprise that businesses are struggling to keep pace with regulatory changes and recruit and retain talented people,” Hughes added.
Irish companies also expect turnover, profits and headcount to increase over the next 12 months, with scores of 6.9 to 7.0, but are more cautious about taking on debt to drive growth in 2024, with interest rates now at maximum levels after the crisis.
The survey also found that businesses view Ireland's tax regime favorably, giving the country an average score of 6.8 when asked whether tax policies promote business growth.
“Entrepreneurial, owner-managed and family-owned businesses are at the heart of Ireland’s economy, and many have the potential to increase their success,” Hughes continued.
“By addressing the significant barriers faced by smaller businesses and encouraging the growth of medium-sized businesses, we can unlock the true potential of Irish businesses.”
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