A new survey shows that optimism levels at SMEs in Ireland are at their highest levels in four years, with businesses based in Dublin more upbeat in their outlook for this quarter.
The survey, conducted by SME lender Linked Finance and Ipsos B&A, reveals that business optimism is now standing at 67% across all SMEs.
Large firms in the sector (10-250 employees) are registering 77% in terms of their optimism for a favourable business environment.
Linked Finance said the last quarter of 2024 ended on a particularly strong note, with a year-on-year average increase of 10% in terms of business activity.
These optimism levels are reminiscent of the second half of 2021, when the country was bouncing back from the worst of the Covid pandemic, but prior to the start of the Ukraine war, it added.
Today's survey shows that business activity is firmly in positive territory and the proportion of those surveyed who said their level of business is lower than previously has steadily decreased since the pandemic.
It noted that large businesses, Dublin-based businesses and exporters are largely driving this improvement. But micro businesses (1-3 employees) are neutral in terms of their business activity levels.
Linked Finance noted that the survey fieldwork took place in January, mostly before the new US Republican administration had entered the White House, so concerns may be reflected around tariffs and the global economy in the next quarterly survey.
Niall O'Grady, CEO of Linked Finance, said it was great to see business optimism, outlook and activity among Irish SMEs at such a high level.
"We can also see this reflected in demands for loans at Linked Finance, as SMEs continue to grow. As ever, not all sectors are recovering equally, with retail and wholesale struggling, but the overall picture is more positive," Mr O'Grady said.
"Geopolitical factors may cause some short-term uncertainty, but our SME sector has faced down challenges before and come out fighting," he added.
