Just one in ten (10%) Irish SMEs say they currently have access to all the skills and talent they need but are still confident about their growth plans, according to new research from PTSB.
The latest Reflecting Business 2026 research found that 84% of SMEs report either skills gaps within their current workforce or a need for additional skilled employees, suggesting access to talent has become one of the most significant constraints on business growth.
Eight in ten (80%) said gaps in sales and marketing were limiting growth, followed by financial and commercial skills (60%); and leadership and management capability (51%). Reflecting the need for talent, 39% said they plan to recruit more skilled staff in the next one to two years.
However, despite these staffing gaps, SMEs are increasingly confident about their chances of growth. SMEs are overwhelmingly optimistic about the impact of immigration on their business, with nine in ten (91%) saying that they expect it will have a positive effect on growth. Of those, 90% said it increases the workforce, 77% said it helps bridge skills gaps, 74% said it helps increase diversity, and 46% said it brings fresh thinking and new ideas.
The research also identified that businesses increasingly see AI as a tool that can support commercial growth and help teams work more effectively.
Four in five SMEs (80%) believe AI will have a positive impact on their business. Among those who see benefits from AI, the largest opportunities identified were improved speed (60%), increased efficiency (60%), improved productivity (56%) and lower operating costs (50%).
While attitudes towards AI are largely positive, businesses also identified concerns around maintaining the human touch (35%), accuracy and reliability (32%), over-dependence on technology (31%) and data privacy and security (29%).
Irish SMEs also have a significantly more positive outlook than they held a year ago. More than half of businesses (57%) believe the Irish economy will improve over the next 12 months, up from 24% in 2025, while 68% expect conditions for their own business to improve, compared with 31% last year.
"Irish SMEs are entering the coming year with strong growth ambitions, but our research shows many businesses are being held back by skills shortages.
What's particularly striking is that the biggest skills gaps are not necessarily technical, but in the more traditional skill sets such as sales, marketing, finance and leadership. So, while AI and technical capability are increasingly important, demand for core commercial and leadership skills is still exceptionally strong.
Business have also made it clear that immigration is essential to ensure that they have the skill sets and the fresh thinking needed for future growth. The overall message that we are hearing through this Reflecting Ireland report is that while technology is important, the human touch and human skills are essential for the future of business growth in Ireland.”
