Businesses south of the Border are feeling the effects of the recession to a much greater extent than their counterparts in Northern Ireland, according to the latest All-island Business Monitor survey from Inter-Trade Ireland.
Some 60 per cent of companies in the Republic of Ireland have reduced their prices in response to the downturn, compared to 27 per cent in Northern Ireland, while 61 per cent of companies in the Republic reveal that the downturn has had a negative impact on their business compared to 30 per cent in the North.
Inter-trade Ireland's quarterly All-island Business Monitor survey found that companies are beginning to embrace the importance of innovation, with 71 per cent planning to undertake some form of new innovative activity over the coming 12 months.
A quarter of firms are using social media to promote their business.
The survey also found an increase in the number of businesses, both sides of the Border, that expect sales to increase - 38 per cent in the second quarter, compared to 31 per cent during the first quarter.
Director of strategy and policy Aidan Gough said that while the survey highlights the challenges faced by firms, about 40 per cent are expecting an increase in sales over the coming 12 months, a sign described as "encouraging."
"We believe that while we are still in negative territory, there are tentative signs that the worst is behind us. However, very real concerns still continue to impact on business from uncertainty over the banking sector, potential tax increases and planned cuts in government spending which may further impact confidence in the next quarter.”