SMEs need to adjust profit expectations to ensure sector’s viability [Video]

Small businesses will need to adjust their profit expectations and require more strategic government supports to ensure their viability and the continued growth of the SME sectors, Banking & Payments Federation Ireland has said.

BPFI’s latest SME monitor found that government needs to move away from subsidising current expenditure and towards supporting the future development of SMEs through measures to increase productivity and efficiency, citing “substantial” labour cost increases and further consumer price inflation.

Brian Hayes, CEO of BPFI, said the report shows a healthy outlook for the Irish economy, which is expected to grow at a moderate level in the short term after significantly expanding since 2019.

“Employment has reached a new record high and inflation pressures are beginning to ease.  

“However, increasing labour costs, including increases to the minimum wage, the proposed pension auto-enrolment scheme and higher employer PRSI contributions will have implications for SMEs,” he continued.

“In addition, almost 58,000 businesses availing of the Revenue …