86% of small businesses performed as well as or better than forecast between January and March, new research shows.
The survey carried out by professional accountancy body ACCA reveals a moderate rise in confidence among finance professionals in Western Europe, and a gradual improvement in global economic outlook.
However, 41% of Irish businesses surveyed said they remain concerned about operating costs, while 44% said increased wage demands are impacting business performance.
Recruiting and retaining staff was the top concern for the finance professionals surveyed, with over half stating that this is their most pressing issue so far this year.
When asked about policies that would boost specific areas of the economy, 38% stated that reduced VAT rate for struggling sectors such as hospitality would have a positive impact.
"These reports demonstrate that confidence among small businesses in the first quarter has been on the rise, as local and global economic conditions improve," said Stephen Noonan, Head of ACCA Ireland.
"However, Irish accountants and the businesses they advise remain concerned about continued high levels of operational costs and challenges to the labour market.
"This relates to both the availability of skilled talent and wage expectations and demands.
"With inflation moving in the right direction and with a concerted focus within the public and private sector to build better levels of skillsets particularly in evolving sectors, confidence and with it economic growth can continue to rise throughout 2024," he added.
