Half Of All Small Businesses Struggling To Survive According To Barometer

Nearly half of all micro and small businesses in Northern Ireland are struggling to survive according to research by the NI Enterprise Barometer, which is the largest annual survey of these type of businesses.

The survey of over 600 businesses found that 47% of these respondents stated that they will not be able to survive the next 12 months without the right support given to them, whilst an overwhelming 95% of businesses reported that their utilities and fuel costs have risen sharply throughout 2022. One in 10 businesses are also reporting severe cash flow pressures, which is up from just 3% at the beginning of this year.

A Concerning Snapshot Of Our Local Economy

Speaking about these findings (the following quotes are from an article in the Belfast Newsletter), Michael McQuillan, Enterprise NI chief executive, said:

“The 2022 NI Enterprise Barometer presents a concerning snapshot of our local economy. As illustrated in these results, the current economic and fiscal environment is extremely challenging for small and micro businesses across NI.

“Macro-level events and challenges like the war in Ukraine and the global economic downturn are placing serious pressures on local businesses, combined with political instability and uncertainty over post-Brexit funding.

“While not surprising, 95% of businesses experiencing a rise in their utilities and fuel expenses over the past 12 months is a stark figure and one which drives home the gravity of the situation businesses find themselves in. The rising cost-of-doing-business is having a severe impact on our entrepreneurs. Without action in the coming weeks and months, businesses will go to the wall.

“Nearly half of our respondents have said they will not survive in the medium term without government support. Small and micro businesses make up the vast bulk of the economy. The collapse of nearly half of these firms would have a catastrophic knock-on effect on the Northern Irish economy, communities, families, and households across the country.

Intervention And Support Is Vital

“Respondents to the Barometer have been clear on the interventions and support they believe are necessary over the next 12 months. These include a reduction in VAT, a change to the business rates system to reduce the burden on small businesses, greater access to finance for stability and growth, and lowering of the energy cap. In the absence of an Executive at Stormont, it’s crucial that the UK Government now steps in to protect the backbone of the NI economy and protect businesses, jobs, and households”.

I think most people do agree that certain steps need to be taken quickly to prevent this crisis becoming even worse, but whether those steps are going to be taken in the time required is anyone’s guess.