Emerald Isle’s Small Businesses Brace for Economic Downturn in 2021

"Small Irish Businesses Brace for Tough Times Ahead as Costs and Interest Rates Surge, Reports Accounting Adviser Azets Ireland"

Small Irish businesses are bracing themselves for the impact of rising costs and interest rates, with many expecting business conditions to worsen as the year progresses. This is according to a recent survey conducted by Azets Ireland, a leading accounting adviser to SMEs. The survey, which received responses from 211 small business leaders, also revealed that many firms are struggling to recruit staff.

In addition to the challenges posed by inflation, the survey found that small businesses are also facing difficulties in securing funding for projects. While many firms are using their own cash and government grants and subsidies to finance initiatives, there is a need for more support to help with staff training.

Neil Hughes, Chief Executive at Azets Ireland, commented on the findings, saying: “Every aspect of doing business is becoming more expensive and rising prices are putting a squeeze on already tight operating margins.”

Despite the difficulties faced by small businesses, the survey found that most firms are forecasting unchanged revenues and profits for the year ahead. However, around a third of respondents said they would need to cut jobs if economic conditions worsen.

The survey’s findings highlight the ongoing challenges faced by small businesses in Ireland, particularly in the wake of the COVID-19 pandemic. While many firms have managed to weather the storm, rising costs and economic uncertainty continue to pose a threat to their long-term survival.

To address these challenges, small businesses are calling for more support from the government and other stakeholders. This includes measures to reduce the burden of regulation and red tape, as well as increased funding for training and development.

Despite the challenges, small businesses remain a vital part of the Irish economy, accounting for over 99% of all businesses in the country. As such, it is essential that they receive the support they need to thrive and grow in the years ahead.

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