Eight in 10 (79%) small and medium-sized enterprises are either as confident or more confident about the future compared with this time last year.

A survey by professional accountancy body ACCA, that sought the views of SMEs on their economic outlook for the year ahead while reflecting on business performance in 2024, found that a third (34%) cited improving growth as their main priority.

A quarter (24%) called out the need to retain skilled staff, and just over a fifth (21%) stated that they would be increasing staff numbers.

Only 15% of responding businesses plan to increase the ‘in office’ days, with 85% set to maintain their current working patterns.

Regarding the biggest challenges of 2024, the forecasted squeeze of profits as a result of higher long-term business costs remains the most significant impediment to projected growth for 38% of businesses despite stabilising inflation levels.

“This survey shows the strength and resilience among many of our SMEs that form the backbone of the Irish economy," said Stephen Noonan, head of ACCA Ireland.

"They have overcome significant challenges over recent years and it is a positive reflection of the strong structures that SMEs have established within their businesses that the majority are confident about their prospects in 2025. This is supported by recent business activity tracker results that have shown that there was a sharp increase in business activity in November.

“Our survey also shows long standing concerns among many businesses remain, notably on the cost of doing business and staff retention. As a professional body we will continue to work with and support small businesses in becoming more efficient and sustainable and helping to bring a strong financial skillset to the labour market which will support economic performance and growth throughout the SME sector.”

Photo: Stephen Noonan. (Pic: Supplied)