Small firms are engines of recovery under four-year plan

26 Nov 2010

While access to credit for viable small firms will remain a challenge, indigenous small businesses will be the engines of recovery under the Government’s four-year plan, according to the Small Firms Association.

The SFA believes the four-year outline provides methods to address the challenges facing our public finances.

“Time and time again, the small business community has shown that they see opportunity in uncertainty; however, they need assistance from Government – this plan shows the Government’s road map,” said SFA acting director Avine McNally.

Better cost control

McNally says that it is crucial for small firms to remain focused and gain better control of their costs, despite the difficulties they face in gaining credit.

“It is essential that the focus remains on restoring cost competitiveness to the small business sector and that the enterprise environment is generated that will assist in the creation of jobs and help small firms gain even greater control of their costs. However, without access to credit for viable small firms, growth will remain a challenge,” said McNally.

Cash flow assistance

The SFA believes the announcement to extend the 15-day prompt payment rule from Government departments to the wider public sector will assist greatly with cash flow.

“Indigenous small businesses will be the engines of recovery and the creation of a supportive environment for the enterprise sector will assist. However, some elements of the plan will cause concern for small firms, including the proposed increases in VAT; changes to the PRSI ceiling and tax treatment of pensions.”

The Government presented its four-year plan this week and it has since evoked outcry among opposition parties and the public alike for its included cuts to the minimum wage and social welfare.