Business confidence down, but “still room for optimism,” says Institute of Directors CEO Caroline Spillane.
Irish business leaders are less hopeful this year than they were in 2021 about the year ahead.
The new findings from the Institute of Directors (IoD) Ireland Q4 2022 Director Sentiment Monitor (DSM) report show that just over one-in-two (54%) business leaders believe the financial performance of their primary organisation will improve for the year 2023.
“As we remain in unpredictable times, I would recommend that all business leaders review and assess their business continuity plans to ensure they are future-proofed”
However, in a year-on-year comparison, when asked this question in Q4 2021, 77% of business leaders were hopeful the financial performance of their primary organisation would improve in 2022.
Future-proof your business continuity plans
In addition, just 15% of business leaders are now ‘more optimistic’ about the economy in Q4 2022 compared to the previous quarter.
“While business leaders were more hopeful last year for the year ahead than currently, signs of confidence remain. Just over one-in-two business leaders are hopeful that the financial performance of their primary organisation will improve in 2023, so there is still room for optimism,” said Caroline Spillane, CEO of the Institute of Directors.
“Business continuity plans were the saving grace of many businesses when Covid-19 hit. As we remain in unpredictable times, I would recommend that all business leaders review and assess their business continuity plans to ensure they are future-proofed.”
The IoD research for Q4 2022 has also found that geopolitical/economic instability is seen by nearly a quarter (25%) of business leaders as the leading risk factor facing their organisations. This is followed by inflation (15%) and labour sourcing/quality/capability/retention (13%).
There are some positives for the Government in the IoD report, too. The findings reveal the Government’s performance is seen by a majority of business leaders (58%) as positively impacting consumer confidence. It also reveals that 49% of business leaders see the Government performance as positively impacting business decision-making.