SFA anticipates creation of 30,000 new jobs in 2016

The Small Firms Association (SFA) has unveiled its ‘Small Firms Outlook 2016’ report which forecasts the creation of up to 30,000 new jobs across the country during the next 12 months.

Domestic economic growth would appear to offer SMEs the most lucrative opportunities in 2016, with two-fifths (40 per cent) of small business owners surveyed targeting growth in Ireland this year.

More than three-quarters (77 per cent) of owner-managers believe Ireland’s business environment is improving, with just four per cent concerned that it is going backwards.

Other positive factors identified alongside domestic growth opportunities included specific sectoral opportunities (14 per cent), exporting (12 per cent) and bringing new products to market (10 per cent).

Patricia Callan, director, SFA, said: “2015 was a significant year in terms of the broadening and deepening of the economic recovery.

“Small firms that survived the crisis are now looking to grow and develop their businesses, to attract talent and export their products.”

Recruitment is also a top priority for almost two-thirds (65 per cent) of survey respondents, which was warmly welcomed by Callan.

“Small firms already employ over half of the private sector workforce and almost two-thirds of our members will be hiring in 2016,” added Callan.

“Small firms have a crucial role to play in job creation around the country, reducing unemployment and attracting emigrants home to work. We expect small firms to create 30,000 jobs in 2016.”

However, the survey results also fire a timely warning to small business owners on a number of matters, most notably cash flow issues (18 per cent), rising business costs (15 per cent), economic instability (14 per cent), wage inflation (13 per cent) and regulatory and legislative burdens (13 per cent).

“These must be monitored closely to ensure that economic recovery does not lead to a loss of competitiveness, which will be ultimately damaging to medium to long-term sustainable economic growth and job creation,” added Callan.

“Tax equalisation between the self-employed and employees will remain a priority in 2016, as will access to public contracts for small firms and the cost of bank finance.

“Investment in housing and broadband must be prioritised to ensure that Ireland remains an attractive location for investment and talent.

“With a General Election due in early 2016, every party must recognise the important role of small business in job creation, enhancing local communities and driving economic progress.

“The Government that emerges from the General Election, whatever its makeup, must put small business at the heart of its policies by embracing the ‘Think Small First’ principle and ensuring that all of its policies are job-proofed.”

Date published 4 Jan 2016 | Last updated 4 Jan 2016