44% of Derry/Strabane & Causeway businesses grew in year but 1/10 fear closure

Sixty-two per cent of businesses in the two districts are forecasting growth in the 12 months ahead.

However, optimism around turnover is overshadowed by increasing pressures on profitability, as one-in-ten businesses stated that they are in difficulty and/or at risk of closure amidst rising costs, skills shortages, and operational challenges.

The NI Enterprise Barometer, the annual survey of the region’s small, micro, and self-employed businesses commissioned by Enterprise NI now in its sixth year, found that 43 per cent of NI businesses report growth over the last 12 months, placing the North West and Causeway Coast ahead of the NI average.

Thirty-three per cent of North West and Causeway Coast businesses reported stable operating conditions, two percentage points below the NI average of 35 per cent, and 13 per cent reported contracting performance, one percentage point above the NI average of 12 per cent.

The proportion of businesses at risk of closure was directly in line with the NI average, coming in at 10 per cent.

Expectations for the next 12 months are markedly optimistic in the North West and Causeway Coast, with 62 per cent of businesses expecting growth, one percentage point above the NI average.

However, 24 per cent of North West and Causeway businesses predict stable performance, below the average of 27 per cent, and eight per cent and six per cent predict that they will contract or be at risk of closure respectively, compared to averages of seven per cent and five per cent.

Locally, 25 per cent of North West/Causeway Coast businesses state that the cost of doing business is an issue at present to a large extent (compared to an NI average of 24%), and 53 per cent of NW/CC companies state it is an issue to some extent compared to an average of 54 per cent.

Thirty-one per cent of North West/Causeway Coast businesses report vacancies, compared to an NI average of 32 per cent.

Seventy-one per cent of those with vacancies state that have proved difficult to fill, compared to an NI average of 72 per cent.

Minister for the Economy, Conor Murphy said: “Since the publication of the last Barometer, the Executive has been restored, I have set four economic priorities, and my Department has recalibrated its activities in line with these.

"I’ve established a dedicated £12 million Skills Fund, new Local Economic Partnerships are being set up at pace and Invest NI is being reformed.

“My economic plans are now contained within the draft Programme for Government, meaning that the whole Executive is behind one economic agenda.

"So, things are moving at pace and I’m pleased to say that this year’s barometer points to a positive economic outlook, whilst recognising there are challenges.”

Maureen O’Reilly, Lead Economist, NI Enterprise Barometer, said: “While the resilience of our business community is evident, the fragility of profits – aggravated by rising costs – cannot be ignored.”

Michael McQuillan, Chief Executive, Enterprise NI, 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.”

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