DUBLIN: Business growth is rooted in exporting according to the latest InterTradeIreland report which reveals a performance gap between companies selling across the border and those trading at home.
The organisation’s latest quarterly Business Monitor Report has highlighted an overall “solid picture” of recovery, with 88 per cent of Irish businesses reporting growth – although the disparity between domestic market traders and those engaged in exporting was increasing.
Results showed 51 per cent of companies trading in the cross-border market reported growth, compared to only 34 per cent of firms solely active on the domestic front.
The survey, which assesses the pulse and mood of businesses across the island, also found that while 55 per cent of Northern Ireland-based companies had ambitions to grow, only 32 per cent actually reported growth, compared to 41 per cent in the Republic.
This is almost a direct reversal of the 2015 findings (for Q4) when 41 per cent of Northern Ireland SMEs reported growth compared to 34 per cent based south of the border.
The results also seemed contingent upon the size of the companies surveyed: more medium-sized (55 per cent) and large (60 per cent) firms were in growth mode, compared to 36 per cent of smaller firms.
Additional highlights included a majority of 76 per cent of businesses being close to or at full capacity, with a
positive upturn in performance seen in the construction sector, although manufacturing still reported difficulties.
Key areas of concern for firms surveyed centred around cash flow and competition, while a quarter of businesses stated that access to finance was an increasing priority.
Aidan Gough, strategy and policy director at InterTradeIreland, said the report showed that business support had “never been more vital” to help companies in the north overcome initial reticence towards exporting.
“With a well-thought out strategy, businesses can move onto a growth trajectory or pathway that is consistent with the strategy outlined in the ‘Export Matters Action Plan’ launched recently by the former Department for Enterprise Trade and Investment – now the Department for the Economy,” he said.
“There still appears to be apprehension among businesses, both north and south, over exporting.”
Three quarters of firms on the island are not exporting in any form, with 55 per cent stating they either ‘don’t want to’ or feel their closest market, cross border, is ‘too far away’.
An additional 18 per cent are concerned about the ‘costs associated with entry to new markets’.
With regard to jobs creation, Mr Gough said the outlook for employment remained “cautiously positive”, with 13 per cent of businesses planning to increase jobs and only 1 per cent planning to cut back on staff during the next year.
