Northern Ireland technology companies are feeling the impact of reduced credit terms from their suppliers, a new report from Deloitte has revealed.
The company’s ‘When the Crunch Bytes’ survey of last year’s entrants to its Fast 50 Awards found that 36% of firms were concerned about working capital, 28% worried about financing and 24% about margin management.
In reaction to the economic slowdown 47% of firms had frozen or reduced their workforce, 20% had cut research and development or expansion plans and 25% had dropped their spending on marketing and PR.
Deloitte said however that local technology firms remained focused on return on investment despite dealing with the worst economic conditions for 11 years.
Associate Partner in Deloitte Belfast, David Coates, said: “It seems a challenged economy represents opportunity for many technology entrepreneurs. The majority of our respondents are self-funded, which could turn out to be a competitive advantage in an environment of scarce liquidity.”
The deadline for entries to this year’s Fast 50 competition is September 7.