Small businesses showing less growth optimism for 2013

New research shows that Northern Ireland’s small and medium sized businesses are more likely to apply and more likely to get loans than SMEs elsewhere in the UK, however ACCA (the Association of Chartered Certified Accountants) points out that at the end of 2012, Northern Ireland’s SMEs were still the least optimistic about their growth opportunities in 2013.

The research from BDRC Continental’s SME Finance Monitor shows that in 2012 SMEs in Northern Ireland were able to secure finance through loans, overdrafts and alternative finance with 82% of overdraft applications reported in 2012 in Northern Ireland being successful (compared with 73% overall in the UK). According to ACCA, one reason for this may be because Northern Ireland SMEs have the best record when it comes to keeping their finances in order. Figures from a separate BDRC SME Finance Monitor report show that between Q1 2011 and Q4 2012 Northern Ireland SMEs in particular have the best record of producing regular management accounts.

However, the same businesses were not looking to use that finance to grow. In Q4 2012, SMEs in Northern Ireland were the least optimistic about their growth prospects for 2013 with just 37 per cent planning to grow compared to 44 per cent planned growth across the UK. ACCA says that while access to finance is one thing, using it effectively is another.

Joan Ballantine, Chairman of ACCA’s Ulster Members’ Network commenting on the research at the annual Chairman’s lunch, “SMEs in Northern Ireland are overcoming a difficult hurdle that many other businesses in other parts of the UK are struggling with – access to finance. However, the fact that prospects for growth have taken a tumble suggests that that finance might now be used simply to maintain the business rather than develop it. Having secured vital funds the challenge now must be to turn that into growth.

“There is considerable evidence which shows growth is much stronger amongst SMEs with a comprehensive finance function backing them up. The role of the accountant in an SME setting goes well beyond the basics of bookkeeping. Their role is vital at different stages of an SME’s development. In the UK most SMEs have no trained staff in charge of their finances. Finance expertise is essential for helping to develop the business and take it forward.

“The role of finance professionals is widening and taking on a more business-focused nature, which is of particular importance for SMEs. From their infancy to their eventual growth into something larger and beyond, the role of their finance function changes and adapts to suit the needs of the business,” concluded Joan.

ACCA has launched the Accountants for Small Business initiative which is aimed at providing support to SMEs in the UK and across the world. A new, free guide for small businesses as well as other useful support initiatives will help SMEs with their finance operations, covering a range of issues, including hiring and training financial staff, outsourcing finance functions, software and systems advice as well as planning for future growth. Find out more here.ENDs 

For further information please contact:Aiken PR on 028 9066 3000Shane Finnegan on 07764534565 orKatrina Frazer on 07553367349or email firstname.lastname@aikepr.com 

Notes to Editors 

1. ACCA (Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. 

2. There are over 20,000 members and students in Ireland. 

3. We support our 154,000 members and 432,000 students in 170 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of over 80 offices and centres and more than 8,400 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.4. Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.