Business sentiment is up with 88% of Irish SME’s saying they are confident for the year ahead
- 36% feel more confident making major investments now the General Election is over however opinions remain divided on government supports for SMEs
- SMEs plan to invest an average of €193,000 over the next twelve months, with staff training and recruitment as top priorities
- 30% of SMEs have implemented AI technology in their operations with 27% planning to do so in future – with most using it to enhance customer service
- 14% of SMEs surveyed say they have faced cyber-attacks with 56% of those affected incurring costs of between €10,000 and €50,000 to resolve the issue
Business confidence among SMEs in Ireland remains strong with 88% feeling optimistic about their prospects for 2025 despite rising business costs and geopolitical volatility. This is according to research conducted by Bibby Financial Services Ireland, a leading provider of financial support and funding solutions to Irish SMEs. Confidence is highest in the wholesale sector, where 92% feel positive about their future.
7 out of ten businesses say they expect sales to rise over the next six months, with only 5% anticipating a decline. Again, optimism is very strong in the wholesale sector.
Businesses surveyed said their top opportunities for the next six months are attracting new customers (50%) and expanding their workforce (37%). In the services sector, 61% see customer acquisition as their biggest opportunity, while in the transport sector, hiring staff remains vital. However, businesses engaged in international trade see fewer growth opportunities over the next six months compared to the previous waves.
Irish SMEs have big plans to invest in the coming months, with 92% intending to do so. When asked how much they plan to invest in their business over the next year, the average figure quoted by businesses, excluding those with no plans, was approximately €193,000. Staff training, recruitment and digital technology are among the top priorities for this investment:
- Staff training & development (35%) – up 7% since 2024
- Recruitment (34%) – up 6% since 2024
- Digital technology and IT, including AI (33%) – up 5% since 2024
- Machinery or equipment (manufacturing businesses) (42%)
36% say they feel more confident making major investments now the General Election is over, however, opinions remain divided on whether the new government will provide better support for SMEs, with one-third expecting improvement and another third anticipating no change. The top government measures SMEs would like to see include:
- Providing low-interest loans or grants for expansion and job creation (38%)
- Lowering or stabilising business energy costs (36%)
- Simplifying taxes and introducing tax incentives (33%)
30% of SMEs have now implemented AI technology in their operations, with another 27% planning to do so. AI adoption is highest in the wholesale sector (44%) with SMEs primarily using AI for enhancing customer service (57%), marketing and sales (38%), automating operations (36%) and data analysis and decision making (32%). However, some of the barriers to AI adoption included lack of knowledge (41%), high costs (31%), data security concerns (23%) and fear of using technology (19%).
14% of SMEs surveyed also said they have faced cyber-attacks, with small businesses particularly vulnerable to breaches and ransom demands. Among businesses with a turnover under €250,000, 24% have faced a cyber-attack issue or breach. Of those affected:
- 86% reported the incident to the Data Protection Commission
- 50% had a ransom demand
- 56% incurred costs between €10,000 and €50,000 to resolve the issue
Mark O’Rourke, Managing Director of Bibby Financial Services Ireland, says the results of this survey demonstrate the optimism and hunger for growth among the Irish SME community despite the challenging geopolitical factors influencing the wider industry.
“It’s always positive to hear that 88% of SME’s are optimistic and remain bullish about the months ahead and expect an increase in sale, regardless of outside influences causing uncertainty.
With 36% of respondents saying they feel confident making major investments now that the general election is over, it is crucial that the government support SMEs both large and small by introducing measures such as tax incentives, lower energy costs and low interest loans to encourage job creation and expansion.
Additionally, 14% of SMEs surveyed have experienced cyber-attacks, with 56% incurring significant costs to resolve these issues. This highlights the critical need for robust framework to protect businesses, particularly smaller operations, which are more vulnerable to these threats.
While there are promising signs of recovery, the market is changing and geopolitical divisions are continuing to grow. We must be prepared for these changes and it is vital the government takes action now to safeguard the future of these businesses.”
About Bibby Financial Services Ireland
Bibby Financial Services is Ireland’s largest independent provider of financial funding solutions to Irish SMEs. Operating across the island of Ireland for 18+ years, the company, on average, facilitates over €1m+ a week in new funding limits – in addition to the millions in weekly payments to existing clients - to enable a range of scenarios including cashflow funding, growth and expansion, management buy-ins and buy-outs, refinancing, corporate restructuring and mergers and acquisitions.
