The majority of SMEs here have been impacted by global trade tensions and tariffs, according to the latest SME Business Sentiment Survey from Chartered Accountants Ireland and GRID Finance.
It found that 60% of small businesses had felt the effects of the changing trade picture.
However the biggest issue for most firms was the continued rise in costs.
"While resilience is building among the business community in Ireland there is still a rocky road ahead," said Cróna Clohisey, director of members and advocacy at Chartered Accountants Ireland. "That's really being driven by rising costs.
"80% of businesses surveyed - and that's across all sectors in Ireland - have reported an increase in costs, particularly in labour costs and day-to-day costs."
She also said there was little sign of this pressure easing in the near future, with a number of added costs facing businesses in the new year.
"From 1st January we're going to see an increase in the minimum wage, we're going to see the introduction of auto-enrolement," she said. "For an employer employing someone on minimum wage, you're looking at an extra €1,800 per employee due to the regulations that are coming down the tracks.
"There doesn't seem to be any let-up in labour costs."
Ms Clohisey also said that compliance costs were continuing to be an issue for firms, with businesses struggling with regulations.
The arrival of pensions auto-enrolement next year has been well-flagged, but the survey suggests that many firms are still not fully prepared for its implications. That is particularly true among smaller SMEs.
"Two thirds say they're ready and about 40% have budgeted for the extra costs," said Ms Clohisey. "But what we're seeing is that the readiness is much bigger in companies that have more than 50 employees - we know the vast majority of companies in Ireland have less than 50 employees."
The silver-lining in this, however, is that SMEs appear to be growing their resilience - with more companies now feeling that they are prepared for the challenges they're facing.
"What we've seen is the resilience of Irish business coming through - they're prepared now for the volatility that we're seeing in global trade markets," she said. "It doesn't make it any easier, but 60% are reporting that they're feeling the heat but they're learning to adapt.
"We are seeing levels of optimism - one in ten report that they're optimistic about the future."
