SME study

Companies are struggling, but are in good spirits

Despite the tough market environment, small and medium-sized enterprises are on a solid footing(Bild: Mathis Fotografie)

Vorarlberg's small and medium-sized enterprises (SMEs) are not letting the current challenges get them down and are largely confident about the future. This is not least due to the fact that most companies are in a very solid position. 

Vorarlberg is a state of small and medium-sized enterprises: they make up 99.8 percent of all companies and employ almost 70 percent of the state's workforce. However, the backbone of the local economy is struggling with the current less than favorable conditions, as a recent IMAS study commissioned by Erste Bank and Sparkassen shows: 68 percent of the companies surveyed stated that the market environment had become more difficult in the past two to three years.

Price increases and poor order situation
The main reasons cited were price increases, the price pressure associated with online competition, the poor order situation and labor shortages. "Companies are feeling the after-effects of the crises of recent years. In combination with the labor shortage, this poses challenges for many," says Martin Jäger, spokesman for the Vorarlberg savings banks, summarizing the results of the study.

IMAS study

68 percent of the Vorarlberg small and medium-sized enterprises surveyed in the study stated that the market environment has become more difficult in recent years.

In view of all these adversities, it is quite astonishing that almost two thirds of all SMEs are still optimistic about the near future. This also shows how solidly positioned most companies are, according to Jäger: "In Vorarlberg, many companies have been able to strengthen their capital base sustainably over the past few years and are now on a very sound footing. This makes them more resilient on the one hand and enables them to invest in their future on the other."

Hope for interest rate cuts
When asked about the challenges of the future, SMEs in the Ländle region are under no illusions: 86% assume that bureaucracy will continue to increase, while 64% do not expect the shortage of skilled workers to ease. According to Jäger, there is at least hope for an improvement in financing costs in the near future: "We expect an initial interest rate cut at the ECB's June meeting and - depending on inflation - further interest rate cuts this year."