Manufacturing & Supply Chain

A new economic survey, by the Association of Chartered Certified Accountants (ACCA), has found that 80% of SMEs are either as confident or more confident about their business prospects for 2024 than they were this time last year. The survey which was conducted amongst 150 accountants who advise thousands of SMEs also found that 32% of small businesses plan to increase their staff numbers next year, with 61% keeping staff levels the same and only 6% planning on reducing their head count.

According to ACCA the survey reflects a positive economic outlook by SMEs for the year ahead, despite recent analysis by both the Economic and Social Research Institute (ESRI) and the Organisation for Economic Cooperation and Development (OECD) that there has been a slowing of the economy in 2023.

However, the professional accountancy body’s report found that consistently high inflation levels, rising operational and supply chain costs and the cost of living crisis is expected to impact the profitability of some SMEs in 2024. Of the those surveyed 65% said they would be either as profitable or more profitable in 2024 than 2023, with 35% saying that they would be less profitable.

There were also signs of a growing return to the office in the survey, with 22% of small businesses saying that they plan to increase the number of days that staff work in the office in 2024, while 60% stated that their current working arrangements will remain the same.

Commenting on the survey, Head of ACCA Ireland, Stephen Noonan (pictured) said: “The exponential growth of the economy in 2022 which saw sustained high levels of multinational exports and investment, further fuelling the post COVID bounce, was always going to start to slow.

“However, that recent fall in the level of growth within the economy and the undoubted impact that high inflation has had on operational and supply chain costs has not dampened the outlook of SMEs for 2024 who are upbeat on their prospects for the year ahead.

“In particular, it is welcome that 32% of small businesses plan to increase the number of people they employ, with only 6% planning on reducing their staffing levels.

“The hybrid working debate is one that will also continue throughout 2024. A crucial component to maintaining business growth and a strong economy, is a skilled labour market.  It is for these reasons that companies need have the right balance of productivity, idea generation and flexibility in their working environment to ensure SMEs can continue to flourish and grow.”