ISME: Small business set on big 2006
The last 12 months has been relatively positive for small to medium enterprises (SME) with a sizeable increase in employment and investment in the sector.
ISME, the group representing small businesses, said in an end-of-year assessment that a recent survey revealed a net 28% of companies were more confident about business prospects and jobs than in the previous 12 months.
The manufacturing has fared better than in previous years with companies reporting increased business confidence and evidence that the sector is beginning to recruit more staff than it is shedding.
However, the manufacturing sector is coming under increasing pressure internationally, particularly from cheap imports and will require significant investment in innovation, R&D and training in order to compete effectively while operating within a high-cost environment.
Other sectors, including services and distribution, experienced further employment growth in 2005, with net increases of 21% and 31% respectively.
The most remarkable growth was in retail, with a significant 58% of companies reporting increased employment in comparison to 16% who reduced their numbers.
However, within this sector, it is the grocery trade that will experience added pressure in 2006, particularly in light of the decision to scrap the Groceries Order.
ISME complained that cost rises which the Government can have a major say in — such as rates, water and waste — have shot up.
The outlook for SMEs is positive for 2006, with the key indicators anticipating robust growth within the sector, particularly in employment.
“It is imperative that costs are kept under control, particularly the labour element and any agreement by the social partners in the New Year will be critical to the direction, future development and growth within the SME sector,” added ISME.
