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Half Of Irish SMEs Say Raising Cash Is Biggest "Headache"

Published on Nov 17 2014 12:32 PM

Half Of Irish SMEs Say Raising Cash Is Biggest "Headache"

Over half (53%) of Irish Small and Medium Enterprises (SMEs) admit that raising capital is their primary headache, according to Ernst & Young's (EY) bi-annual Capital Confidence Barometer.

The eleventh such survey from EY shows a contrast between Irish businesses and their international counterparts, who cite optimising capital as their biggest managerial issue.

Furthermore, 50% of Irish survey respondents said that when it comes to raising new capital, new equity is the main source of funding, compared to 49% of global respondents citing raising new debt. Ireland is due to post the highest economic growth in the EU this year, with EY expectations of GDP to rise by 4.8%.

Mike McKerr, Managing Partner with EY said, "The focus on Irish exports in the US and UK should partly insulate the economy from mounting problems in the Eurozone economy. Almost two-thirds (64%) of Irish respondents considered the local economy to be improving, and growth appears to be becoming better balanced, with domestic demand making a contribution to growth, particularly investment. Consumer demand, however, remains sluggish."

The EY survey also showed that 70% of Irish respondents are expecting their organisations to create jobs over the next 12 months, which is a 20% rise from the Capital Confidence Barometer results released in April this year. Additionally, 47% of Irish companies said that cost reduction and operational efficiency will be their core focus in the coming year.

© 2014 - Checkout Magazine by Genna Patterson

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