Irish SMEs predict bounce back in Q3
Irish business owners expect to bounce back in the third quarter of this year, according to new research from peer-to-peer lender Linked Finance.
Despite ongoing pessimism in the small- and medium-sized enterprise (SME) market, 83 per cent of business-owners in Ireland believe that they will perform better or in line with expectations in the third quarter of this year, compared with last year.
More than half (52 per cent) of businesses said that they have taken measures beyond pricing to mitigate the effects of inflation. 34 per cent have cut their operational costs, 19 per cent have diversified their products, and 12 per cent have been offering discount and promotions, in an effort to beat rising inflation. However, as Ireland’s rate of inflation starts to slow, business optimism is rising.
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“Notwithstanding inflation and a price squeeze on businesses and consumers, there is evidence of the resilience that defines Ireland’s SME sector and reflect its adaptability in the face of changing economic currents,” said Niall O’Grady, chief executive of Linked Finance.
“The ability for businesses to innovative and put solutions in place such as product diversification and promotional campaigns, underscores the evolving strategies adopted by businesses as they navigate through a phase of tempered enthusiasm.”
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Linked Finance found that despite economic tailwinds, business optimism is slightly higher than it was a year ago, with an uptick in business activity projected during the fourth quarter of the year.
Ireland’s retail businesses have performed particularly well, partly due to the fact that 75 per cent of retail and wholesale businesses have opted to increase their prices.
“While challenges remain, the anticipation of improved business activity for Q4 2023 and the potential for job growth in regional markets provide hope for SMEs,” added O’Grady.
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