Rising input costs, tighter access to finance and the impact of tariffs are the biggest risks facing Irish SMEs, new research shows.
The survey was carried by the Strategic Banking Corporation of Ireland (SBCI), the State’s promotional financial institution.
It reveals that high energy and transport costs and difficulties in hiring people with the right skills are also adding to the strain on businesses.
The research reveals a high degree of exposure among Irish SMEs to multinationals and US trade disruption.
28% of respondents said they earn at least a quarter of their revenues from doing business with multinational corporations, with nearly 40% of exporters trading with the US.
73% of SMEs cited high costs as the top concern, while 71% said access to finance, and 69% said the impact of tariffs.
Despite the risks, the survey shows that SMEs are largely positive about their financial outlook and growth prospects, with many planning to hire more people and invest further in their businesses.
However, the overall mood remains cautious.
“As Ireland’s promotional financial institution and a supporter of over 63,000 Irish SMEs, we are committed to understanding the pressures these businesses face and providing financial solutions to help them overcome these challenges,” said June Butler, Chief Executive of the SBCI.
“Our research shows an encouraging level of confidence among SMEs about the future.
“However, this optimism is tempered by the reality of the risks they continue to navigate.
“We’ll continue to work with our lending partners, including banks, non-banks and credit unions, to devise new and better ways for SMEs to access finance,” she added.
