The second six-monthly SME Business Sentiment Survey from Chartered Accountants Ireland and GRID Finance has found that 60% of businesses have been impacted by global trade tensions and tariffs. The survey measures and tracks the experience, confidence and sentiment of SMEs, including small accounting practices, doing business in Ireland. The inaugural survey took place in April 2025.

Businesses more prepared for trade tensions and tariffs

Despite uncertainty in global trade and tariffs, the proportion of businesses unprepared for related disruptions has fallen from 36% to 23% in the past six months - suggesting growing resilience. Business members in particular feel better equipped to manage these issues, rising to 25% now compared to just 15% in April. The effects of Brexit continue to be felt with 41% of respondents reporting that it had a negative impact on their business.

Cróna Clohisey, Director of Members and Advocacy, Chartered Accountants Ireland said:

“The findings highlight both the resilience and the pressures facing SMEs. While more businesses are now prepared for global trade disruptions, the environment remains volatile and demands continued vigilance. Our members are uniquely positioned to help businesses plan, adapt, and thrive amid these challenges, offering the trusted guidance and expertise needed to build long-term resilience.

“Encouragingly, nearly a third of members (32%) report business profitability has increased in the last 6 months, an improvement on April’s findings. One in three also believe that their business will be better off in the next 12 months, up 5% from the previous survey.”

Cost pressures continue to bite

The survey found that business costs are continuing to increase for the vast majority (79%) of SMEs. Small businesses remain under pressure from rising labour costs, which nearly two-fifths identify as their greatest financial challenge. This is followed by rising operational costs (30%) and regulatory compliance costs (12%). Not only are costs a financial challenge to businesses, they are viewed as the biggest competitiveness challenge faced by SMEs at 45%. This is followed by salary demands and talent pipeline/shortages.

Countdown to auto-enrolment

Almost two-thirds (64%) of businesses indicate that they are prepared for the pension auto-enrolment start date of 1 January. The findings reveal that business size is a significant factor in how companies prepare for this new scheme. Those with 50+ employees are more likely to budget for increased costs and expand their existing occupational pension schemes at 53% and 49% respectively compared to 32% and 33% for organisations with fewer than 50 employees.

Clohisey continued

“Businesses are taking steps to ready themselves with almost 60% having attended an information session, but only 39% have budgeted for increased costs related to the scheme. Smaller firms will need additional support to manage the costs and administrative burden this reform will bring. Continued government support will be vital to ensure no business is left behind.”

Eoin Christian, CEO, GRID Finance said:

“The November survey findings highlight the views of small businesses across a range of critical issues and clearly illustrate the challenges they continue to face. Chief among these are rising costs related to staffing, day-to-day operations and regulatory compliance. When combined with an uncertain global trading environment, these pressures make it more important than ever for small organisations to closely assess their operations and future cash-flow requirements.

“With almost one-fifth of respondents reporting increased demand for borrowing, and nearly one-third applying for government supports, it is evident that businesses are actively seeking financial assistance — both from the State and from specialist finance providers such as GRID Finance.”