Optimism among business owners is at a five-year high, despite the fact that the upturn has benefitted big business more than smaller players, according to the latest BDO Optimism Index.

Conducted for BDO by Behaviour & Attitudes, the quarterly Optimism Index compiled the response of 350 business owners/managers nationwide for its Q2 2015 instalment.

It found that larger companies are benefitting most from the upturn, with 69% of these reporting increased business activity compared with Q2 last year, whereas just 40% of smaller companies reported an increase.

One in five companies in Ireland have succeeded in pushing through additional price increases and a further 70% have succeeded in maintaining prices at the same level compared to Q2 last year, according to the latest BDO Optimism Index.

The number of companies who reduced their prices also decreased from 17% in Q2 2014 to 9% in Q2 of this year.

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Overall, more than one in five companies increased their employee numbers, with the most significant growth coming from mid- to large-sized firms, increasing by almost 50% year on year.

Optimistic

The Q2 survey also recorded an overall optimism score of 66.8, compared with 63.4 last quarter. BDO said that this 6% increase quarter on quarter is the highest level of optimism among firms surveyed in the past five years.

Among all companies the top two priorities are business growth and keeping sales coming in.

Other findings indicated that almost six in ten bigger companies and over four in ten companies overall reported an increase in business activity here in Ireland.

Just 12% of companies overall reported an increase in export business, while just under four in ten companies are concerned about ‘Brexit’.

Commenting on the findings, Michael Costello (pictured), managing partner with BDO, said: “The recovery is underway and business optimism is at a five-year high, but the figures in the BDO Optimism Index highlight that this is being led by larger companies based in Dublin.”

“With the budget coming up it is more important than ever that the government acts now to put in place the right taxation and investment incentives to help secure sustainable success for all size companies across Ireland.”