The Irish SMB Landscape in 2025
Irish small and medium businesses (SMBs) are the backbone of the national economy, employing over 75% of the private sector workforce and generating two-thirds of Irish-owned firm earnings. As of August 2025, Ireland is home to more than 300,000 SMEs, with sector growth projected at over 3% this year, according to the latest 2025 SME Fact Sheet. Business optimism is high: 88% of Irish SMB owners feel positive about the year ahead, 92% plan new investments, and 70% forecast rising revenue.
Despite this robust outlook, challenges persist. Economic pressures—including rising energy prices, supply chain inflation, and limited access to finance—continue to affect businesses, especially micro-enterprises. Meanwhile, ever-tightening labour markets and increasing regulatory complexity add to everyday pressures. Value-added growth also remains harder for smaller firms.
For 2025, technology investment—especially in AI automation—is seen as a vital path forward for Irish SMBs. Government-backed digital transformation initiatives, improved infrastructure, and a talented local workforce position Ireland to lead in business automation. For many, AI-powered automation is moving from far-off ambition to real, practical strategy that eases operational pain, unlocks growth, and maintains competitive edge.