Small and medium sized enterprises have experienced an improvement in trading conditions for the six months to the end of March, with 23 per cent reporting an increase in staff numbers, according to a new survey.
The SME Credit Demand survey, conducted by Red C on behalf of the Department of Finance, showed an increase in the proportion of profit-making businesses from 48 per cent to 51 per cent. The number of companies reporting a loss remained steady at 18 per cent.
The survey, which covers the period October to March, found 35 per cent of SMEs requested credit during the period. The decline rate continues to be the highest for micro enterprises at 20 per cent.
Minister for Finance Michael Noonan said the results show an improvement in trading conditions for Irish SMEs.
“The belief among respondents that the banks are lending to SMEs continues to grow. This is encouraging but the banks need to ensure that this belief is matched by corresponding lending to viable businesses,” he said.
Mr Noonan said he was disappointed to see such a low level of awareness of the government supports available to small businesses.
Just 26 per cent of the buisinesses surveyed said they aware of the Microfinance Loan Fund, while only 6 per cent were aware of other supports such as the NPRF funds. More than 40 per cdent of SMEs said they were unaware of any government support initiatives.
The survey series is the most comprehensive survey of SME credit demand in Ireland, covering 1,500 respondents and involving over 5,000 direct calls to SMEs.
