The number of large company owners who believe the Coalition is anti-business has increased by 20 per cent, according to a new survey.
The proportion of company owners who said they believe the Government is “anti business” was up from 36 per cent last year.
The Business Owners Sentiment Survey (Boss) Report found that 63 per cent believed Ireland’s personal tax regime acts as a barrier to attracting and keeping senior talent in Ireland, with 65 per cent supporting reducing Capital Gains Tax to 20 per cent.
The survey, undertaken on behalf of accounting firm Smith and Williamson (S&W) surveyed more than 500 owners of businesses with turnover of more than €5 million. It found that among owner-managers of larger Irish companies, dissatisfaction with the Government was rising.
The survey reported concerns about tax and infrastructure outweighing positivity around the economy’s performance.
Although more than three-quarters said they were confident in the Government’s economic strategy, tax and infrastructure featured among the top concerns expressed by business owners.
Nearly two-thirds of respondents said that personal taxes were impacting upon hiring, with a similar proportion agreeing somewhat or strongly that capital gains tax (CGT) should be reduced from 33 per cent to 20 per cent.
65 per cent said they agreed strongly or somewhat that CGT should be reduced to 20 per cent. 63 per cent agreed that Ireland’s personal tax regime is a barrier to attracting senior talent.
Under one in ten (7%) said they disagree strongly or somewhat. Irish business owners will be hoping for action in the October Budget.
63 per cent strongly or somewhat agreed that the housing shortage makes it difficult for their company to attract qualified candidates to relocate to Ireland.
65 per cent strongly or somewhat agreed that a new government-backed savings and investment account similar to the UK ISA or Swedish ISK would encourage the public to invest.
The authors said housing was “hobbling” growth, adding:
“Persistent problems with housing and infrastructure are hampering growth. The proportion of business owners agreeing strongly or somewhat that the pace of infrastructure development threatens the country’s long-term economic competitiveness has increased from 41% last year to 67% today. Almost two-thirds, meanwhile, say housing shortages make recruiting talent more difficult.
“Amid the growing opportunities from AI, the survey shows that business owners face these and a range of other challenges, from funding and inflation to skills shortages and succession. Regardless of what the Budget brings, Irish business owners will need resourcefulness and the right advice to navigate these and fully realise the promise the new technology seems to bring.”
Asked about AI, 71 per cent of owners said their business is actively investing in AI. 73 per cent said they intend to boost AI spending in the next 12 months, while 72 per said they see AI as presenting an opportunity for their business.
73 per cent said that AI tools have significantly increased efficiency or productivity.
However, large company owners also acknowledged that AI could have a significant impact on the workforce.
Half of the business owners in our survey (50 per cent) said that they expect AI would reduce headcounts or hiring. This was already happening – with 58 per cent saying they have seen redundancies or hiring freezes (56 per cent) or that these are likely in the next 12 months. The most common reason cited for this was efficiencies or productivity benefits from artificial intelligence tools (23 per cent), followed by increasing automation (21 per cent).