A study on Ireland’s small and medium enterprises (SMEs) for lender Linked Finance shows the sector has edged into negative territory for the first time since 2020. Post pandemic trade was strongest for SMEs in 2022. Over the last three years, business has remained positive – until now. Despite that, SMEs are still performing well, particularly larger businesses.
The research, which was conducted by Ipsos B&A, indicates that one-in-three SMEs reported that business results were lower year-on-year, an increase of two per cent on the same period last year. While the increase is not overly significant, it does show that several factors – both externally and domestically – are affecting the performance of SMEs.
Bounce
Business optimism among Irish-based SMEs surveyed was 67 per cent six months ago, but that has now dropped to 61 per cent. Exporter optimism in the first quarter, which had increased due to a bounce in orders rushed to warehouses ahead of threatened tariffs in the United States, has dissipated somewhat.
The retail and wholesale trade is the one SME area that saw increased optimism levels in the second quarter, with positive sentiment up by five points year-on-year. Niall O’Grady (above), CEO of Linked Finance and Marketer of the Year winner for Permanent TSB in 2007, said Dublin-based SMEs are performing much better than those in the regions.
Since its launch in 2013, Linked Finance has lent more than €350 million to Irish SMEs.
