Business Barometer Monitors Mood of Midwest

Sixty-six per cent of small firms in Limerick and the Midwest are optimistic about their future in 2016, lagging behind the national average of 74 per cent. The sentiment was revealed in Amárach’s Economic Recovery Index commissioned by telecoms and cloud services provider Magnet.

The findings were presented to Limerick Chamber member companies at a breakfast event on February 3rd organised by Limerick Chamber and sponsored by Magnet.

The nationwide study of over 500 SMEs, conducted by Amárach Research, revealed some interesting insights for businesses in the region and beyond. An increasing number were optimistic about the future with many planning to open new premises. However, recruitment costs and available skills have become a serious pain point for many.

Just under one in three SMEs hope to open new premises in 2016, a big increase on last year when 1 in 10 considered such plans. Cutbacks in the Budget were seen as the biggest challenge for recruiting staff in the Midwest with 42 per cent reporting this, a trend was echoed throughout the country

When questioned about the Government’s support for SMEs there was a lot of dissatisfaction, with 72 per cent saying they were not doing enough for business owners – the highest nationally. However, this has improved on 2015 when 83 per cent in Midwest cited the same.

Commenting on the research findings, Dr James Ring, CEO of Limerick Chamber, said: “Magnet’s research is an excellent barometer for businesses here in the Midwest and nationwide. The economic recovery is gradually making an impact in the regions, and it’s great to see so much optimism about the future from our local business community. However, as the election nears, it’s interesting to note the continued dissatisfaction with Government support for the SME sector. Business costs and access to finance, in particular, are issues that need to be looked at more seriously by future policy makers if we are to continue on this current path to recovery.”