Research from ACCA and Grant Thornton suggests that one in six small firms expect to lay off staff following the closure of the Employment Wage Subsidy Scheme.
A survey of 200 finance professionals at a recent seminar found that, since the start of the year,
‘SMEs are feeling inflationary pressures from two directions: higher input costs and via a "squeezed consumer" that is having to divert more spending to essential items such as heat and food,' said Andrew Webb, chief economist at Grant Thornton.
'We welcome the decision to cut VAT on fuel bills, but we would also urge policymakers to keep further reductions under review,' said Caitriona Allis, Head of ACCA Ireland. 'The economic conditions facing our small business sector are extremely challenging, with many still in recovery mode from the pandemic, which is impacting their ability to absorb rising costs.'
More information
ACCA has tips on supporting SMEs, including the SME Sustainability Playbook. This offers guidance on supporting SMEs in their understanding of sustainability and includes valuable tips on a range of topics, from accessing green finance to reducing carbon emissions.
To commemorate MSME day, ACCA has produced case studies and other tributes to SMPs.
