Two-thirds of companies surveyed by small business group ISME have said their viability is under threat over the next 12 months, if current conditions continue.
ISME said its survey of 600 companies indicated that the next 12 months would continue to be tough, with firms further reducing employment and investment. ISME head of research Jim Curran said the survey showed there was little evidence of 'green shoots' in the sector.
But its second quarter survey found that business optimism had picked up for the second quarter in a row, though from very low levels. 23% of companies expect business conditions to improve over the next 12 months, up from 16% in the previous quarter.
74% of firms surveyed thought the current business environment was 'poor' or 'very poor' - up from 69% in the first quarter.
62% of companies are employing fewer people than at this time last year - up from 56% in the first quarter - with only 6% employing more. ISME says these are the worst employment figures on record. The construction sector was worst affected with 83% of firms letting people go. 43% of firms believe they will lay off more people over the next 12 months.
Economic uncertainty topped the list of small firms' concerns, with 38%, while 24% cited reduced orders as their biggest concern. Access to credit was the biggest concern for 12% of companies.
