Increase in turnover a significant improvement on low levels reported a year ago.
45% of all businesses reported increased turnover in the six months up to March 2022 with 18% reporting a decrease.
According to the latest SME Credit Demand Survey commissioned by the Department of Finance, 61% of SMEs reported profit during 2022, compared to 53% in 2021. 10% reported a loss in 2022 while 25% broke even.
“The survey gives an insight into how SMEs in Ireland are continuing to demonstrate resilience as they adapt to challenges arising from Brexit, the pandemic and most recently from Russia’s invasion of Ukraine”
Only 16% of SMEs in Ireland applied for bank credit between October 2021 and March 2022. 5% of SME firms applied for non-bank finance.
76% of SMEs reported that sufficient internal funds was the reason for not seeking credit.
Climate change and energy
All sectors reported an improvement in turnover performance compared to March 2021. The biggest improvement was seen for the Hotel and restaurant (66%) sector.
Two-thirds of SMEs agree that investing in climate change adaptation is important.
Electricity costs are a significant proportion of total energy costs.
For 38% of SMEs, energy costs were less than 2% of cost of sales, while for 26% the energy costs were between 2-5% of cost of sales. For 9%, energy costs are more than 10% of cost of sales.
35% of SMEs have committed funds to invest in energy efficiency over the next year.
The biannual survey by Behaviour and Attitudes is the most t comprehensive survey of SME Credit Demand in Ireland, covering over 1,500 respondents through in-depth discussions. The survey captures a full picture of the SME landscape in Ireland, with micro enterprises, small-sized enterprises and medium-sized enterprises accurately represented as per the percentage make-up of SMEs in Ireland.
“The survey gives an insight into how SMEs in Ireland are continuing to demonstrate resilience as they adapt to challenges arising from Brexit, the pandemic and most recently from Russia’s invasion of Ukraine,” said Finance Minister Paschal Donohoe, TD.
“The SME Credit Demand Survey series is an invaluable resource that allows us to develop, refine and implement policy measures to support our indigenous businesses and allows the Department of Finance gain an essential understanding of the Irish SME environment.