Confidence growing among smaller firms

CONFIDENCE AMONG small- and medium-sized businesses is rising, with an increasing number of executives expecting revenues to increase in 2010, a new survey has said. The survey from mobile network O2 finds that senior executives in SMEs are more confident about their prospects for the year than they were last year.

More than double the number of business executives are increasingly confident about their prospects for 2010, rising from 12 per cent last year to 26 per cent.

The survey, which spoke to 300 owners or director-level executives in organisations with up to 250 employees, also finds a steep decline in those who have a more pessimistic outlook. That group falls from 59 per cent last year to 26 per cent at the beginning of 2010.

More than a third – 34 per cent – say they expect revenues to rise in 2010. This compares to only 24 per cent in 2009, while 42 per cent say they expect revenues to remain static. Only a quarter predict a drop in sales, compared to 36 per cent last year.

“The study finds that while companies continue to face serious challenges in terms of sales, cash flow and competition, there appears to be the start of a recovery in confidence levels,” said Alan Brown, Telefónica O2 Irelands business sales director.

Mr Brown said 57 per cent believed the global recession had bottomed out, but only 23 per cent thought the Irish recession had hit its lowest point, with 62 per cent believing there was more to come.

“The survey suggests that owner-managers believe that if they can get through last year, when the Irish and global economies were in severe decline,” Mr Brown added, “then 2010 has to be better as the world economy recovers.”