Small and medium-sized enterprises remain optimistic about their businesses, according to a new survey.
The survey by ISME, which represents the sector, found that 30 per cent of respondents expect to increase employment in the coming year.
It found that 38 per cent were more optimistic about their businesses in the coming year, compared to 14 per cent who were less optimistic.
The net figure of 24 per cent is a slight increase on the 22 per cent recorded in the previous quarter's survey.
There were more than 500 respondents to the 2,000 businesses surveyed. The most optimistic sector was distribution, where a net 41 per cent of companies were more optimistic about business prospects. Next came services, where 33 per cent were more optimistic.
The responses from the manufacturing sector, however, were at odds with those from other sectors. No net new jobs were predicted in manufacturing by the survey. Only a net 10 per cent of manufacturing companies felt more optimistic.
This was an improvement on the previous quarter's survey, when the net figure was 5 per cent, but is well behind the result of the last quarter survey of 2005 when a net 22 per cent of manufacturing businesses were more optimistic.
The survey found that 2006 was a good year for employment in SMEs, with a net 33 per cent of service businesses, and 19 per cent of distributors, increasing employment numbers.
The survey found that 56 per cent of respondents intended to increase investment in their businesses in the coming year, up from 53 per cent at this time in 2005.
The value of exports by respondents was down on the previous quarter, with a net 14 per cent reporting an increase in comparison to a net 18 per cent for the June-September quarter. However, in comparison to the same period last year, the value of exports increased by 4 percentage points.
Labour costs were identified as the biggest immediate concern to 22 per cent of companies, followed by erosion of competitiveness (16 per cent), increased regulations (13 per cent) and energy costs.
