SMEs are resilient, ambitious, and ready for growth in a changing landscape

Summary

Our latest SME Confidence Tracker report provides key insights from over 250 Irish business leaders and decision-makers, sharing their views on the biggest challenges, opportunities, and trends shaping the SME sector in Ireland. The survey shows that despite economic uncertainty, rising costs, supply chain disruptions, and geopolitical volatility, Irish SMEs remain resilient and growth-focused. An impressive 88% of business owners express confidence in their prospects for 2025.

The recent Budget and General Election were seen as crucial moments for SME support, yet many business leaders remain unconvinced about their long-term impact.

Top Findings

• Investment Outlook: 92% of SME decision makers plan to invest this year, 36% feel more confident making major investment decisions now post the General Election.
• Sales Outlook: 71% say that they are expecting their sales to increase in the next six months
• M&A Activity: 67% of SMEs are exploring merger or acquisition opportunities for 2025
• AI & Digital technology: 30% have implemented AI technology in their operations, with another 27% planning to follow
• External Finance: 42% of business owners say that they are more likely to use external finance now than six months ago, particularly those involved in international trade
• High costs and Inflation: More than 64% of SME business leaders say high costs and inflation is a significant challenge for their business, up from 43% in Quarter 3, 2024
• Invoice Payments: 65% of SMEs report longer payment delays from customers, especially in Construction (75%) and Transport (72%) sectors

2025 SME Demands:

Government Support:
While signs of recovery are emerging, shifting market dynamics and growing geopolitical divisions pose new challenges. SMEs emphasize the urgent need for government action to safeguard their future. Their top priorities include simplifying tax structures, introducing targeted incentives, stabilising business energy costs, and providing low-interest loans or grants to fuel expansion.

Access to Finance:
Securing external finance remains a major hurdle for SMEs, limiting their growth potential and broader economic contributions. Nearly half (48%) of SMEs report deteriorating access to finance over the past six months, with challenges particularly pronounced in Wholesale (56%), Manufacturing (50%), and Services (50%).

Bridging this financing gap through greater awareness of funding options and fostering stronger SME-lender relationships is essential to unlocking business growth and driving economic progress.

How is Bibby supporting business ambitions?

Bibby Financial Services is a family-owned business and are Ireland’s largest independent provider of financial funding solutions to SMEs for over 19 years. As people-led business, we take time to understand their needs. On average, we facilitate over €1m+ a week in new funding limits to enable a range of funding scenarios including cashflow/working capital, growth and expansion, management buy-ins and buy-outs, refinancing, corporate restructuring and mergers and acquisitions.

Through our partnership with the Strategic Banking Corporation of Ireland (SBCI), we have helped over 300 Irish businesses access more than €70 million in funding, ensuring they maintain steady cash flow and grow with confidence. Additionally, our strategic collaboration with PTSB expands access to a broader range of financial solutions, helping businesses achieve their ambitions.

The SME Confidence Tracker, launched in 2017, is a regular market study surveying over 250 Irish SME business owners across key sectors including manufacturing, construction, wholesale, transport and services sectors. It monitors business confidence, performance, Government policy, and investment plans. Conducted by independent specialists Critical Research, the latest fieldwork took place from 18th to 25th February 2025.