BUSINESSES in Belfast see political uncertainty as a bigger challenge even than spiralling rates and staff recruitment, a new survey has found.
And the majority of respondents also believe both turnover and profits will increase in the next six months in what was a generally improving picture than the previous survey, conducted by M.E.L Research on behalf of Belfast City Council and Belfast Chamber.
Some 352 businesses of all sizes in the greater city area were canvassed for their views (78 per cent have been trading for at least a decade and 62 per cent have turnover of £500,000 or more).
Business owners were asked about current and future business costs and challenges, with the questions generally mirroring those in a similar survey six months ago.
But given the year-plus failure to have an operating Stormont Executive, respondents were asked for the first time for their views on political uncertainty.
And more than half (51 per cent) said this was their biggest current business challenge - well ahead of staff recruitment (42 per cent), paying overheads (38 per cent), getting paid on time by customers (37 per cent) and increasing business rates (28 per cent).
Belfast Chamber chief executive Simon said: “The survey illustrates the complexity of the challenges facing businesses in the city at present.
“It's positive to see a slight rebound in optimism compared to our last survey as well as increases in sales in some markets along with confidence about increased profitability in the next six months.
“But it is easy to see why considerable pessimism remains when we look at the increase in the cost of doing business being experienced by the overwhelming majority of respondents in addition to other challenges like staff recruitment and retention.
“The availability of staff has been a regular issue raised in these surveys but it is reassuring that only 4 per cent of businesses are worried about having to make redundancies.”
And he described it as “significant” that more than half of those who took part in the survey said political uncertainty represented a challenge for their business.
“Belfast Chamber has supported efforts to find solutions on the Northern Ireland Protocol that represent a durable outcome that both protects consumers and gives businesses the certainty they need. We also appreciate the need to take time to consider options.
“But when businesses owners in Belfast rank political uncertainty as a bigger business challenge than staff recruitment, paying overheads and getting paid on time by customers, it is also abundantly clear that the ongoing, indefinite absence of an administration at Stormont is causing considerable concern for our city’s business community and that we need an Executive back in place.”
