
The State of Irish SMBs—Challenges and Opportunities in 2025
Irish small and medium-sized businesses (SMBs) are the backbone of the Irish economy, with over 250,000 operating nationwide and employing nearly 70% of the private sector workforce (statista.com). As of September 2025, 72% of Irish SMBs report strong financial health and more than 80% successfully manage daily operations (gridfinance.ie).
Yet, rising costs—wages, energy, insurance, and raw materials—continue to squeeze margins. Attracting and retaining skilled talent is still challenging, while evolving Irish and EU compliance requirements add to the administrative burden. Despite improvements, funding access remains a concern for many.
AI automation in Ireland is increasingly vital, helping local SMBs address these pressures, optimize operations, and maintain a competitive edge. Recent reports highlight how technology is empowering Irish SMBs to adapt quickly and respond to challenges confidently (thinkbusiness.ie). As we enter late 2025, AI automation has shifted from an emerging trend to an essential strategy for futureproofing Irish businesses.