Rising labour costs have been identified as the top concern by 37% of small businesses in the Munster region in comparison to other regions where the top concern was economic uncertainty.

The overall results of a joint HP/SFA All-island Survey of over 400 small businesses found that 51% of Irish SMBs are less confident about the economic outlook for 2008.

Yet confidence in prospects for their own business remains high despite the gloomy outlook for the overall economy, with 52% of respondents to the survey in the Munster area indicating that they expect to grow their business over the coming year.

The survey also showed that the majority of businesses are planning for today, but not the future. Only 31% of small businesses are looking more than one year ahead when making business plans with owners more focused on daily concerns and ensuring the survival of the business without the capacity to invest in planning and strategies for the long-term future.

Patricia Callan, Director of the Small Firms Association, said that "long-term planning is essential for small business survival and growth, but too few owner-managers take the time to invest in themselves and learn how to strategise into the medium to long-term".

"Without these skills, they may be unable to survive cyclical downturns in their business or may not have the appropriate framework in place for succession. Earlier research has shown that fewer than one in three family businesses survive to the second generation—greater investment in strategic planning could ensure that these businesses are thinking ahead and in a position to overcome short-term downturns," she added.

With a greater focus on indigenous Irish industry in the current economic environment, it is interesting to note that 54% of small businesses in the Munster region expect to expand their businesses over the coming year—40% within the Republic, 11% in the North and 23% abroad.

Owners of small businesses are working longer and harder than ever before with over half of owner-managers indicating that they don't manage to take their full yearly entitlement to annual leave and 40% missing important family events due to work commitments.

The study also found that 55% of respondents work over 51 hours a week on average, while 35% of businessmen and women regularly work weekends.

Around 49% of people said that a family member was their most inspirational figures throughout their business career, above mentors, colleagues or friends.

Martin Cullen, Head of HP's Personal Systems Group, said that "there is a real challenge for us to provide solutions that will accommodate people in juggling the demands of family life and business commitments".

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