Business leaders in Ireland and abroad are anticipating revenue, productivity and product growth over the next 12 months, according to new research by Deloitte.

The Deloitte survey queried 2,550 private company leaders across 30 countries, including 100 in Ireland. It found that the majority of respondents anticipate growth in six of eight key business metrics assessed. The strongest growth is predicted for revenue, productivity and profits.

More than half of Irish private companies that responded to the survey expect revenue growth to increase over the next 12 months. Overall, three-quarters of private business leaders globally expressed high or extremely high confidence in the success of their private firm over the next 24 months.

In Ireland, despite 42% of respondents indicating that uncertainty is higher now compared with a year ago, 35% anticipate growth in revenue by at least 51% in the next 12 months.

Overall, 65% of Irish respondents expressed high confidence in the success of their businesses for the next two years, with another 15% expressing very high confidence.

In Association with

One-third of Irish respondents believe that it is likely their business will go public in the next 12 months, while a further third believe this is likely after the next 12 months.

Cross Border

Deloitte’s research found that 85% of Irish respondents derive more than one-quarter of their current revenues from markets outside Ireland.

Broadly in line with overall global responses, Deloitte also found that four in 10 private Irish companies surveyed believe they will participate in an acquisition over the next 12 months. Another 28% in Ireland said their company will likely at least consider an acquisition.

Amongst all respondents, the top driver cited for M&A activity over the next 12 months is the opportunity to enter new global markets (39%).

In Ireland, the main driver identified was increased availability of capital (35%), followed by the opportunity to enter new global markets (29%), bargain hunting for under-priced assets (29%), efficiencies of scale (26%) and to expand/diversify client base (26%).

In terms of talent development, increasing the number of full-time employees was identified by 49% of Irish respondents as the top investment in talent, followed by leadership development (32%).

In order to attract and retain employees, 45% of Irish firms plan to re-imagine learning and development programmes using experiential formats.

Four in 10 Irish companies said that they are driving a culture of open and transparent communication with leadership, and promoting company commitment to social responsibility, while 36% are increasing their focus on flexibility and wellbeing programmes. However, only 32% of Irish companies plan to develop new talent strategies, nine percentage points below the global average.

There also seems to be an appetite among Irish business leaders to find ways of adapting to disruptive technologies. Some 45% of respondents are exploring ways to take advantage of disruption while 32% are considering new business models.

In conjunction with exploring new business models, companies are also looking for ways to improve growth. The main growth strategies identified by Irish respondents are increased productivity (27%), growing existing markets (25%), development of new products and services (20%) and entry into new foreign markets (20%).

Other findings from Deloitte show that more than three-quarters of Irish respondents (77%) characterise culture as strategically important to the success of their company. Some 62% also said that social responsibility is a high priority for their company. However, 31% admitted that their social responsibility programmes are not well developed or supported.

Commenting on the findings, Deloitte Ireland partner Daniel Murray (pictured) said that the majority of executives surveyed are highly optimistic about growth.

“It is encouraging that private Irish companies have plans, and the ambition and confidence, to scale their businesses. These businesses are the engine of our economy, and their importance and contribution to employment and economic progress here is critical,” Murray continued.