Majority of SMEs confident about next year despite economy slowing

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 The vast majority of small firms are confident about their business prospects for next year despite a slowing economy, a survey has found.

The survey of 150 accounts who advise thousands of small and medium sized enterprises (SMEs), conducted by the Association of Chartered Certified Accountants, found that 80% are either as confident or more confident about their business prospects for next year than they were this time last year.

The survey also showed that 65% said they would either be as profitable or more profitable next year when compared to this year with the remaining 35% saying that they would be less profitable.

Nearly one-third, 32%, said that they plan to increase their staff numbers next year with 61% saying they will keep their staffing levels the same.

According to the ACCA, the survey reflects a positive economic outlook by SMEs for the year ahead despite recent analysis by the Economic and Social Research Institute (ESRI) and the OECD that the economy has been slowing this year with that potentially leading into next year.

ACCA Ireland head Stephen Nolan said the slowing of the economy along with high inflation and operational costs has “not dampened the outlook of SMEs for 2024 who are upbeat on their prospects for the year ahead”.

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