A LACK OF finance for investment is preventing one-third of Irish businesses from expanding their operations, according to a new survey.
The Business Monitor study carried out by InterTradeIreland showed fears for the future among company owners. Almost half of the small businesses surveyed said that they were either struggling to survive, shrinking, or winding up entirely.
Meanwhile, just six per cent said they would be hiring new staff in the near future.
Many company owners were not satisfied with their bank. Seventy per cent felt that their lender had “little or no understanding” of their financial needs.
However, just one in ten businesses had approached their bank in the hope of securing more funding. Aidan Gough, strategy director for InterTradeIreland, said this reflected a lack of confidence in the banking sector.
He said businesses faced “a decline in customers, a fall in confidence and contraction in cash with each reinforcing the other, creating a vicious circle that is difficult to break out of.” Gough continued:
The fact is that nine out of 10 businesses are reluctant to approach banks for funding. The disconnect between the funding businesses require and what banks are willing to provide is an issue that has to be addressed.