New research reveals that rising costs of energy, transportation and materials are the biggest concerns for Irish SMEs this year.
The new research is from the Strategic Banking Corporation of Ireland (SBCI) – the State’s promotional financial institution that has channelled €5 billion in funding to over 67,000 Irish SMEs.
It shows that 91% of SMEs said rising costs of energy and transportation represent a key risk for them, up from 68% last year. 86% also said the cost of materials is a key risk, up from 73% in 2025.
Meanwhile, 76% of SMEs said the availability of skilled labour was another key risk, up from 67% last year.
Today’s survey also suggests that far more Irish SMEs are now trading with the EU, up to 59% this year, compared with 33% in 2025.
But the number of those trading with the US has reduced sharply against a backdrop of ongoing US tariff uncertainty, falling to 33% this year from 46% last year.
SBCI said, however, that the number of firms reporting tariffs as their biggest risk has fallen from 69% to 55%.
The survey also reveals that 65% of SMEs expect their financial position to improve in the next 12 months compared to 70% in 2025, while 54% plan to hire more employees, compared with 60% in 2025.
But it also shows that appetite for innovation has eased, with 40% of SMEs said they had no expected product or service innovation planned for this year, up from 21% in 2025.
Colin Moran, the chief executive of the SBCI, said the institution is committed to understanding and supporting Irish businesses facing pressures in the current business climate and providing finance solutions to assist them in navigating these pressures.
“Our latest SME research shows firms remain confident, despite rising costs, and are preparing sensibly for the future, while their priorities are shifting in line with both domestic and international economic developments,” Mr Morann said.
“It is encouraging to see that Irish businesses have clear, appropriate plans in place to invest where necessary so they can maximise their chances of commercial growth,” he said.
“We will continue to provide finance solutions that can aid in that growth and support the revenues and jobs generated by SMEs that make up such an important part of the Irish economy,” he
