ONE-in-ten businesses in the north are in danger of closing, a new survey from Enterprise NI suggests.
The latest enterprise barometer from the business support service found 43% of businesses surveyed enjoyed growth in the past 12 months, with 61% expecting they’ll grow in the 12 months ahead.
However, optimism around turnover is overshadowed by increasing pressures on profitability, with 10% of businesses stating that they are in difficulty and/or at risk of closure amidst rising costs, skills shortages, and operational challenges.
Enterprise NI said the barometer is the most comprehensive survey of small, micro, and self-employed businesses in the north.
Just over 1,000 businesses took part in the latest survey.
It revealed one-on-three (35%) were stable over the past year. But 12% said business had contracted, with 10% admitting they are in trouble.
While the 43% of businesses experiencing growth represented a 1% decrease from 2023, optimism was stronger in this year’s barometer.
Some 80% are prioritising growth within Northern Ireland, with the Republic the most popular destination for northern businesses hoping to grow sales.
Just under half (47%) of businesses plan to grow sales across the border in the coming year, followed by 39% in Britain.
One-in-five (22%) are hoping to grow sales in the rest of the EU, with 20% for other international markets.
But the survey revealed rising costs remains a major issue for businesses, with 88% reporting increases in cost of raw materials, 87% reporting rising costs in state utilities, 85% in vehicle running costs, and just over half (55%) reporting rising borrowing costs.
The survey also highlighted the challenges around vacancies and skills in the north.
One-in-three (32%) reported vacancies, up from 27% in 2023, while 55% reported problems in finding suitably skilled people.
Just under half (47%) said they do not know where to access skills support.
Economist Maureen O’Reilly, was involved in the study, said it offers “a unique longitudinal analysis” of the north’s economy.
“While the resilience of our business community is evident, the fragility of profits – aggravated by rising costs – cannot be ignored,” she said.
Enterprise NI chief executive, Michael McQuillan, said: “It is critical that councils, Invest NI, Enterprise NI, Local Enterprise Agencies, and the Department for the Economy work in concert to deliver targeted support where it is most needed.
“The increasing pressure on profitability requires us to act decisively to sustain the growth and resilience of our local businesses.”
Commenting on the findings, Economy Minister Conor Murphy said his department had recalibrated its activities since the last barometer.
“We will feed this information into our policies and budgets for the coming year and we will continue to work with Enterprise NI to ensure that the necessary support is in place for our entrepreneurs and small business owners.”