Irish private businesses are confident that they can survive the downturn, with many predicting that their profits will either remain unchanged or increase over the next six months.
According to a KPMG survey of 250 Irish owned businesses, 73 per cent of respondents said that their businesses are protected against the adverse market conditions which currently exist, while over a third are still investing, mainly back into their business.
Moreover, almost half of the businesses surveyed anticipate that their profits will either remain unchanged or increase over the next six months.
Amongst the challenges faced by Irish companies is cash flow management, and seven out of ten respondents indicated that customers are now taking longer to pay.
However, companies are not experiencing a deterioration in their banking facilities despite the current crisis, with three quarters of respondents stating that there has been no negative impact on their relationship with their bank.
Companies responding to the survey believe that the best solution to the current downturn is for Ireland to trade its way out of difficulties.
Forty-one per cent of respondents called for more incentives for business start ups, while 21 per cent said that increased availability of seed capital are the best ways to address the negative impact of the challenges faced in this sector.
Despite difficulties faced in the current downturn, 77 per cent of respondents said that they would encourage family members to start a business, with three quarters of respondents expressing the view that attitudes towards entrepreneurial activity are as favourable or more favourable in Ireland compared to other countries.
