Lack of customer demand hindering small firms, research shows

Customer demand - and not access to finance - is hindering the progress of small businesses in Ireland, according to research published earlier this month.

Viking, the office supplier, revealed that half of the firms it questioned believe a reduction in customer spending is their biggest problem at the moment.

But 28 per cent of small businesses still said that a lack of finance is causing problems with growth, suggesting more needs to be done to get banks lending, Business and Leadership reports.

Michael Walby, director of Viking in Ireland, told the news provider that firms will need to adapt to changing market conditions.

He added: "There's a telling distinction in the findings between Irish and UK SMEs.

"While we are all familiar with the discontent surrounding the dearth of finance, the fact is, capital is of limited use if demand is at a low ebb, and that seems to be more the case in Ireland than across the water."

It comes after the Small Firms Association said that up to 20,000 jobs could be created across the next 12 months by small firms.

Posted by Thomas Fletcher

Date published 18 Feb 2013 | Last updated 17 Jan 2013