Nearly half of all small businesses in Northern Ireland could go to the wall if proper government support is not put in place quickly.
That is the main finding of a wide-ranging survey from Enterprise Northern Ireland which surveyed more than 600 so-called micro and small businesses within its network. A total of 47% of respondents to the NI Enterprise Barometer said they won’t survive the next 12 months without the right support in place while 95% said their utility bills have soared throughout 2022.
Worryingly, one in 10 businesses have reported severe cash flow pressures, compared to just 3% at the start of the year.
“The 2022 NI Enterprise Barometer presents a concerning snapshot of our local economy,” Michael McQuillan, Enterprise NI Chief Executive, said. “As illustrated in these results, the current economic and fiscal environment is extremely challenging for small and micro businesses, from all sectors, across Northern Ireland.
“Macro-level events and challenges like the war in Ukraine and the global economic downturn are placing serious pressures on local businesses, combined with local political instability and uncertainty over post-Brexit funding.”
The report showed that economic growth is slowing with only 36% of businesses expecting to grow in 2023, compared to over 50% at the beginning of 2022. The number of respondents who expect their business to contract in the next year has doubled from 18% to 36%.
“While last week’s Autumn Statement from the Chancellor was aimed at injecting stability into the economy once more, it did little to relieve the concerns of small and micro business owners in Northern Ireland,” Maureen O’Reilly, Barometer Economist, said. “Our barometer shows that growth is slowing across the country and firms are now concerned about contractions within their businesses. Deteriorating growth, combined with rapidly rising inflation and the ongoing cost-of-living crisis, is a dangerous mix.”
