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86% of small businesses performed as well as or better than forecast in the first quarter of 2024, a new survey conducted by ACCA has revealed.
This positive performance by Irish businesses, supports the findings of ACCA’s Global Economic Condition Survey (GECS) that saw a moderate rise in confidence among finance professionals in Western European and a gradually improving global economic outlook.
However, SMEs remain concerned about operating costs with 41% of Irish businesses calling it out as a significant challenge with 44% stating that increased wage demands were an impediment to business performance in the first quarter of the year.
The main concern for the finance professionals surveyed, however, was persistent challenges in recruiting and retaining staff with just over half (51%) signalling that this is their most pressing issue so far in 2024.
When asked about policies that would boost specific areas of the economy, 38% stated that reduced VAT rate for struggling sectors such as hospitality would have a positive impact.
Stephen Noonan, head of ACCA Ireland, said: “These reports demonstrate that confidence among small businesses in the first quarter has been on the rise, as local and global economic conditions improve. However, Irish accountants and the businesses they advise remain concerned about continued high levels of operational costs and challenges to the labour market. This relates to both the availability of skilled talent and wage expectations and demands.
“With inflation moving in the right direction and with a concerted focus within the public and private sector to build better levels of skill sets particularly in evolving sectors, confidence and with it economic growth can continue to rise throughout 2024.”
