A new survey shows that a gap between small firms doing well and those facing significant threats due to Covid-19 is emerging.
The latest Small Business Sentiment Survey from the Small Firms Association shows that 35% of SFA members feel that the business environment is improving.
But 33% of SFA members reported a weakening business environment. This compares to 17% the same time last year.
Sven Spollen-Behrens, SFA Director, said that as the country prepares for what could prove to be a very difficult winter, Covid-19 restrictions were identified as the biggest risk to small business in the coming months.
But he said that despite the difficulties facing them, a resilient small business community is evident through the positive responses to key questions in the survey.
Mr Spollen-Behrens said the majority of respondents intend to keep wages at their current levels or to award pay rises where the business performance allows.
But he also noted that a number of companies reported decreased working hours, paused or cancelled recruitment, while others had to let staff go temporarily.
"It is not surprising that 14% are considering lowering pay rates, compared to 1% in winter 2019," he added.
The survey also reveals that 61% of respondents indicated their intention to grow their businesses through investing in their brand, staff and Brexit proofing their organisations, in the coming months.
"Policymakers need to listen to this enterprising spirit and help entrepreneurs over the challenging months ahead," the SFA boss said.
He also said that the majority of respondents (65%) identified Budget 2021 as very important to the outlook of their business.
Mr Spollen-Behrens stated that small firms are the backbone of the Irish economy, supporting them helps create and sustain jobs throughout the country.
"Given the scale of challenges indigenous businesses are facing from coronavirus and a no-trade deal Brexit, we hope the Minister for Finance recognises their importance in the upcoming Budget and introduces measures to allow small firms survive and thrive in the years ahead", he added.
