Expectations for 'better' turnover but availability of credit still an issue
A third of small businesses expect turnover to be better over next six months, and yet over half rate the current business environment as "poor" or "very poor," highlighting that access to credit is still a worrying issue for the local small business community.
Those are amongst the findings published this week by the Sligo County Enterprise Board and the thirty-four other Enterprise Boards as part of their bi-annual Business and Banking Confidence survey, which included the views of over 1,200 sole traders and small business owners throughout the country.
37% of the small businesses surveyed, expected turnover to be better over the next six months, when compared with the June to December period last year. On the other hand, 23% of respondents expected turnover to be worse over the same period. Meanwhile, the number of business owners who feel that the current business environment was either poor or very poor, remains largely unchanged from last year at 53%.
Commenting on the survey results, John Reilly, CEO with Sligo County Enterprise Board said: "It's clear from the results of this survey that we need to improve the overall business environment for Ireland's small business sector at a local and national level. To achieve this, we need additional enterprise support resources to encourage and foster our indigenous small business sector, creating more sustainable jobs locally."
When asked about availability of credit, only 4% of those surveyed felt that access to credit had improved over the last six months, while 37% felt that availability of credit had worsened over the same period. There was a high level of demand reported for a small business loan scheme concept, proposed by the County and City Enterprise Boards.71% of respondents felt that such a scheme, to provide loans of up to €20,000 to support working capital needs, would be both "helpful and desirable."
For the first time, the County and City Enterprise Boards have overtaken the Credit Unions as a source of funding for those surveyed, coming just after the main financial institutions.
The Business and Banking Confidence Survey was carried out by the Sligo County Enterprise Board, which provides an advice, mentoring and information service to new start-ups and micro-enterprises in the region. The survey was administered and compiled by the CEB Central Co-Ordination Unit of Enterprise Ireland and the full set of findings are available to download at www.sligoenterprise.ie/download/1/Bus%20Confidence%20Survey%20Jan%202011%20FINAL.pdf. For information around the enterprise supports available locally, the Sligo County Enterprise Board can be contacted at 071 9144779.