The fourth Quarterly SME Business Trends Survey for 2012, launched this week by ISME, the Irish Small & Medium Enterprises Association, shows all 12 indicators moving in a positive manner. However the Association warned the Government against complacency, as the current business environment remains challenging with the need for less rhetoric and a more focused emphasis on Government cost control and jobs initiatives.
According to ISME CEO, Mark Fielding, “the Government needs to implement enterprise led policies in 2013, combined with a revitalised Action Plan for Jobs which should focus on small business as the primary job creators. The SME private sector must take the lead in holding wage rates for the foreseeable future and impose a pay freeze for at least one year, to bring our wages more in line with our competitors”
The survey was conducted in the third week of December, with over 840 SME respondents, giving a response rate of 17%.
“Retailers have borne the brunt of weak consumer confidence in 2012 and we expect this to remain problematic in 2013. The Government must focus on maintaining employment in the weakest sectors of the economy and supporting them with new enterprise initiatives,” added Mr Fielding.
“During his budget speech, the minister for finance mentioned the ‘PLUS ONE’ initiative to incentivise new employment. This must be introduced without delay as the agencies of the State, given the job to promote the current schemes have been found wanting, a new and innovative scheme should be put in place immediately to reward employers for each new job created.”
“Economic uncertainty continues to be the issue of most importance for SME owners demonstrating to Government that, while the global situation is difficult, the domestic economy must be assisted through a real jobs plan and a concerted effort to bring the state sector into line on costs.
In conclusion, Fielding outlined that, “while the results of the Winter 2012 Trends Survey are in the main positive and to be welcomed, the domestic economy is still in a fragile state. The recent budget is a step in the right direction however, cutting government influenced costs, access to bank credit and late payments must be prioritised by the Administration in the coming months”.
