Irish small and medium-sized enterprises (SMEs) are markedly more pessimistic about 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 now less optimistic about the economic backdrop than six months ago, up from 54% in October 2025
The twice‑yearly survey, which covers SMEs including small accountancy firms, was first run in April 2025 and repeated in October 2025. According to the survey, only 25% of respondents reported higher profits, down from 32% in October, while 84% said business costs had increased. It showed that the staff-related expenditure is a key pressure point, with 38% naming employee costs as their main financial challenge.
Overall, 54% said rising costs were the biggest threat to competitiveness, raising concerns over the ability of smaller firms to sustain and grow their businesses. Almost half of business owners (48%) cited geopolitical uncertainty, and its impact on costs and supply chains, as their main challenge over the next year. One-third (33%) said energy prices and energy security had the greatest impact on their business infrastructure.