Improving economy and Govt supports resulting in growth for SMEs – Corcoran Kennedy

Fine Gael TD for Laois/Offaly and Chairperson of the Oireachtas Jobs Committee, Marcella Corcoran Kennedy has said the supports in place for SMEs, alongside a growing economy, have resulted in an improvement in trading conditions. Deputy Corcoran Kennedy was speaking following the publication of the SME Credit Demand Survey covering the period April – September 2014. This survey brings together the contributions of 1,500 respondents and involved over 6,000 direct calls to SMEs.

“The Credit Demand Survey shows that a growing economy and supports in place for SMEs have resulted in improved trading conditions with 84% of companies saying that turnover has increased or stayed stable. One in three businesses has hired more people and over 50% of SMEs are making a profit.

“These statistics are extremely encouraging as they indicate that starting your own businesses is a good option. Growth in this area is also very important as two thirds of all new jobs come from start-up SMEs in their first five years of existence. The Government recognises the importance of supporting SMEs and has put in place a range of measures to support growth in this area.

“The survey also shows that the outlook towards credit for SMEs has changed. Businesses believe that banks are lending which is very good news, but despite this only 31% of the 1,500 SMEs surveyed applied for credit during the six month period. SMEs looking to expand or to take on new projects should consider applying for credit as it is available and if banks refuse credit, the Credit Review Office is there to question the decision, and with 56% of the cases referred to them overturned, their success is clear.

“We know that there are lots of good ideas out there but they are often not acted upon due to lack of resources or lack of confidence in the market. This survey showed that 61% of SMEs have engaged in innovative activities and 38% have developed new marketing concepts. I am really encouraged by this innovative forward thinking.

“One worrying outcome of the survey is the awareness among SMEs of the Government supports available. The “Supporting SMEs” online tool was launched in May this year and the Strategic Banking Corporation of Ireland (SBCI) will improve the availability of credit in the sector. These are just two of the most significant measures that have been introduced and only yesterday (Wednesday), Intertrade Ireland held an event to encourage SMEs to avail of the €12 billion public procurement market. Despite the opportunities in this sector, InterTradeIreland’s most recent Business Monitor, indicated that only 14% of SMEs in Ireland have bid on a public sector tender in the last 12 months.

“We are lucky to have so many entrepreneurial, business minded people in Ireland. Small businesses are the corner-stone of local economies and I am very pleased to see that trading conditions are improving for them. However, further growth can be achieved if SMEs avail of the supports that are available.”