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Dublin: 9 °C Thursday 17 April, 2014

Businesses spending more with local suppliers, but have little confidence in banks

Less SMEs are taking summer breaks and more will invest in their companies this year, a new survey has shown.

Image: daffodilred via Shutterstock

OVER HALF OF Irish small businesses feel that there should be more pressure put on banks to lend to SMEs.

The figure, released by business networking group BNI Ireland, shows that just four out of ten businesses are confident in the banking sector.

Over 1,000 Irish businesses were surveyed, with 84 per cent saying that the current state of the economy has changed the way they do business.

Almost three quarters of those said that they now deal more with local suppliers, defined as being within an hours drive.

64 per cent of SMEs took a summer break this year, down from 73 per cent last year and 57 per cent of owners say that they will invest more in their business this year than last year.

Sandra Hart, executive director of BNI Ireland South and West said that the poll is a clear signal that the government need to encourage the banking sector to do more for SMEs.

“Every day we see the pressure small businesses are under, much of which is due to non-compliance from their bank to grant them finance, and this needs to be addressed urgently by the government.

Continuing to ignore the problem will see a further loss of jobs at a time when small businesses should be encouraged to create employment.

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