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SMEs under pressure, says survey
Friday November 07th 2008. Posted: 09:00
Small and medium-sized enterprises (SMEs) in Northern Ireland are facing a double whammy of rising costs and loss of customers as the economic crisis bites, according to new research from BT Business.
Almost half of SMEs (49 per cent) reported worsening trading conditions during the current downturn - compared with just over a fifth of companies in the province (21 per cent) seeing an improvement. Those businesses reporting more difficult trading revealed that 47 per cent of them were experiencing rising costs - compared with a national figure of 57 per cent - while 46 per cent had lost customers, compared with 51 per cent across the UK as a whole. Liam O’Brien, managing director for BT Business in Ireland, said: “The SME sector continues to be dynamic and energising but, more than ever, we need to ensure the right resources and structures are in place to support the local small business ‘engine room’ during these more challenging times. “We need to help as many businesses as we can to best meet the current challenges so they are ready for the upturn when it comes.” The survey highlighted the biggest issues and solutions faced by businesses in the province - with finance dominating. After rising costs, finance, tax and VAT (48 per cent), legislation and red tape (32 per cent) are seen to be the main barriers to growth among Northern Ireland businesses. Increasing turnover (14 per cent) is the main priority during the slowdown, with winning new business next (13 per cent). Thirty-three per cent of businesses in the province said technology had enabled them to reach new audiences and just over a fifth (23 per cent) cited its benefits to productivity and administration.
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Last updated:
12:56