Irish SME confidence slides as cost and geopolitical pressures grow: survey

Irish tiny and medium-sized enterprises (SMEs) are markedly much pessimistic astir the economy, according to the latest SME Business Sentiment Survey from the Chartered Accountants Ireland and GRID Finance.

The survey showed that 71% of SMEs are present little optimistic astir the economical backdrop than six months ago, up from 54% successful October 2025.

The twice‑yearly survey, which covers SMEs including tiny accountancy firms, was archetypal tally successful April 2025 and repeated successful October 2025.

According to the survey, lone 25% of respondents reported higher profits, down from 32% successful October, portion 84% said concern costs had increased.

It showed that the staff-related expenditure is simply a cardinal unit point, with 38% naming worker costs arsenic their main fiscal challenge.

Overall, 54% said rising costs were the biggest menace to competitiveness, raising concerns implicit the quality of smaller firms to prolong and turn their businesses.

Almost fractional of concern owners (48%) cited geopolitical uncertainty, and its interaction connected costs and proviso chains, arsenic their main situation implicit the adjacent year.

One-third (33%) said vigor prices and vigor information had the top interaction connected their concern infrastructure.

Chartered Accountants Ireland Members and Advocacy manager Cróna Clohisey said: “These findings constituent to a worrying inclination for SMEs, with outgo pressures intensifying and profitability declining compared to six months ago.

“SMEs are being squeezed from each sides – by rising wages needed to clasp staff, persistent increases successful day-to-day operating costs and vigor and regulatory pressures, making it harder to support margins and clasp staff.”

Regulation emerged arsenic the apical country wherever firms question authorities support, with 54% prioritising a simplification successful regulatory and compliance requirements implicit taxation measures oregon backing supports.

This absorption carries into views connected Ireland’s upcoming Presidency of the Council of the EU, with 40% of businesses calling for simplification of EU rules.

GRID Finance CEO Eoin Christian said: “As an organisation that works intimately with SMEs, it is important for america to recognize their outlook. This survey sheds airy connected the cardinal challenges businesses are facing, including rising costs and geopolitical uncertainty.”

Recently, Chartered Accountants Irelandreleased a presumption insubstantial connected the aboriginal of AI and accountancy.

"Irish SME assurance slides arsenic outgo and geopolitical pressures grow: survey" was primitively created and published by The Accountant, a GlobalData owned brand.

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