Irish SMEs Report 2025
GRID Finance’s new research comparing SME sentiment from early 2023 data shows significant improvement in business health and confidence, alongside growing concerns about government policy understanding.
The research reveals an increase in SMEs reporting good financial health – from 60% in early 2023 to 72% today, while those reporting financial difficulty decreased from 39% to 27%. During this same period, the proportion of SMEs who feel misunderstood by the government increased from 64% to 74%.
“This research provides important insights into the changing landscape for Irish SMEs, while we’re seeing improved financial health across the sector, there’s a clear message about the need for better alignment between government policy and SME needs as we move into 2025.”
Key Changes Since Early 2023
- Financial health improved from 60% to 72% reporting good health
- Businesses reporting difficulty decreased from 39% to 27%
- Forward outlook strengthened: 35% now expect improvement vs 26% in early 2023
- Government understanding gap: increased from 64% to 74%
Current Business Indicators
- 83% successfully managing financial obligations
- 61% fully up-to-date with financial commitments
- 62% focusing on operational cost management
- 14% expecting decline in 2025
Ongoing Challenges
- 79% significantly impacted by energy costs (consistent with 2023)
- 78% affected by raw material costs
- 70% seeking clarity on tax relief/incentives
- 58% need improved access to grants/loans
2025 Outlook
- 50% expect business conditions to remain stable
- 35% anticipate improvement (up from 26% in 2023)
- 14% expect decline (down from 18%)
The Research
Conducted through RED C’s Computer-Aided Telephone Interviewing (CATI) centre, surveying 300 SMEs across Ireland, with a sample error level of +/- 5.7%.
| Year | 1-2 employees | 3-9 employees | 10-49 employees |
|---|---|---|---|
| 2023 | 29% | 64% | 7% |
| 2024 | 21% | 42% | 37% |
About GRID Finance
GRID Finance is dedicated to providing accessible and sustainable financing solutions to small and medium-sized businesses. With a deep understanding of the needs of Irish SMEs, GRID Finance offers a range of financial products and services designed to support growth, resilience, and long-term success.
Social Impact and B-Corp Accreditation
As a Certified B Corporation, GRID Finance meets the highest standards of social and environmental impact. With an overall B Impact Score of 127.9, significantly higher than the median score of 50.9 for ordinary businesses, GRID Finance is committed to continuous improvement and leading the transformation of the global economic system.
Media Contact Information
Ciara Battigan, Marketing Director & Foundation Director
087 1189580
ciara.battigan@gridfinance.ie
