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Press release

Minister Donohoe welcomes results of the latest SME Credit Demand Survey

Survey shows Irish SME environment remains favourable

  • Of those SMEs that did not access credit, 89% cited lack of credit requirements
  • 7th year in a row that there has been an increase in reported number of companies making a profit
  • 51% of SMEs report that women either own or are part owners of the company

The Minister for Finance and Public Expenditure and Reform, Paschal Donohoe TD, has today (Sunday) welcomed SME Credit Demand Survey – April 2018 – September 2018 the Department of Finance’s publication of the latest in its series on SME Credit Demand Surveys, which covers the six month period April – September 2018.

This survey series is currently conducted by Fitzpatrick Associates in conjunction with Behaviour and Attitudes, on behalf of the Department of Finance. It is the most comprehensive survey of SME Credit Demand in Ireland, covering over 1,500 respondents through in-depth discussions.

The Department has conducted the SME Credit Demand Survey biannually since 2011 in order to have an independent and statistically significant report into the Irish SME landscape and the availability of, and demand for, credit that exists for SMEs.

Some of the Survey’s key findings include:

  • while demand for credit has decreased to 20% in this survey, of those SMEs that did not access credit 89% cited lack of credit requirements as their reasoning
  • for the 7th year in a row, we have seen an increase in the reported number of companies making a profit; 72% of all SMEs reported a profit in the period
  • the survey registers little change in expected future demand for credit, with 19% of SMEs expecting to apply for finance in the next six months, compared to 20% during the corresponding period in 2017
  • the average cost of credit reported on outstanding loans has continued to decline, at 4.4%, down from 5.1% in September 2017
  • 76% of all SME credit applications were fully or partially approved at the time of surveying;
  • drawdowns continue to increase with 73% of respondents reporting that they have availed of their full credit facility, a significant increase compared to 60% in September 2017
  • 51% of SMEs report that women either own or are included as owners of the company
  • when asked if the Senior Manager or CEO of the firm was female, the response indicated that just under one in three of all SMEs are managed by a female. This rose to 33% for micro companies, but dips to 22% of all medium companies

On the publication of the SME Credit Demand Survey Minister Donohoe said:

"I welcome the results of the latest SME Credit Demand Survey, which shows that though credit demand is low, the number of SMEs reporting a profit has again increased, for the seventh year in a row. It is also more than timely that levels of female participation were captured. The survey has shown that while 51% of SME owners/part owners in Ireland are female, this decreases to 29% for female management of SMEs.

"I would like to take this opportunity to sincerely thank all those businesses that took part in this survey. The SME Credit Demand Survey series is a valuable resource that allows us deepen our understanding of how to support our indigenous businesses, which are the backbone of our economy."

ENDS

Note for Editors:

Background of Report

The SME Credit Demand Survey has been conducted biannually since 2011 to monitor trends in access to credit by SMEs. Please note while the survey is conducted on a 6 monthly basis, for presentation purposes, the report uses year-on-year comparisons.

The Department has conducted the SME Credit Demand Survey in order to have an independent and statistically significant report into the Irish SME landscape and the availability of, and demand for, credit that exists for SMEs. The survey was conducted through a telephone survey covering over 1,500 businesses. It drew a carefully constructed sample from a large database of SMEs, made repeated calls to ensure a full response and asked factual questions. The full questionnaire is included in the report.

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