SMEs hit as orders cut
Thursday April 16 2009
More than half of small businesses in Ireland have had orders cancelled due to the economic downturn.
The Irish Small and Medium Enterprise (ISME) Association said that its latest survey shows that the sector is experiencing "severe difficulties", with exports particularly hard hit.
A total of 43pc of companies reported that the value of their exports was down on the same period last year and 56pc reported employing fewer people than at the same stage last year. Only 4pc of companies expect their sales to increase in the coming year, while just over three-quarters expect profits to fall.
The quarterly trends survey for the first three months of this year covered more than 600 companies and three-quarters of firms said that they were less confident about future business prospects in the period.
grants
Asked to name their biggest immediate concern, 37pc of firms cited economic uncertainty, 24pc reduced orders, and 21pc "Government inaction".
Meanwhile, Dublin-based firms are set to benefit from the EU Commission's decision to authorise the Irish Government to hand out state aid of up to €500,000 per firm over the next two years. Over the next two years, Irish companies can get direct grants, reimbursable grants, interest rate subsidies and subsidised public loans.
