Irish SMEs are looking ahead with confidence, but growth is still being shaped by real-world pressures

The latest PTSB Reflecting Business report explores the outlook, opportunities and challenges facing Irish SMEs in 2026.

The findings show a very significant jump in optimism among Irish SMEs with 68% who say their business outlook will improve over the next 12 months, more than double the 31% from 12 months ago.  Nevertheless, there also is a keen awareness of the pressures that continue to influence decision-making, from rising costs and energy pressures to global uncertainty and access to finance.

Separately, the report also sees a rise in attitudes towards embracing sustainability to help deliver business growth.

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What is Reflecting Business?

Reflecting Business is PTSB’s research series exploring the realities facing Irish SMEs from confidence and growth expectations to investment, sustainability and the support businesses need to move forward.

This year’s report provides a snapshot of how SMEs are thinking about the year ahead, what pressures are affecting their decisions, and where they see opportunity for future growth.

What Irish SMEs told us

The latest findings point to a clear message: Irish SMEs are ambitious, but growth is being shaped by practical pressures and careful decision-making.

• 72% of SMEs see sustainability initiatives as a significant growth opportunity.
• 89% say geopolitical developments are already having a negative impact on growth.
• 61% say access to finance is important to achieving their growth plans.
• 78% say access to a dedicated sector specialist would be beneficial.
• Current energy price pressures are increasing willingness to invest in energy-efficiency measures.

Together, these findings show that sustainability is becoming part of how businesses think about resilience, competitiveness and long-term growth.

Confidence is growing, but pressure remains

Many Irish SMEs are looking ahead with greater confidence, but the report shows that optimism is balanced by caution.

Rising costs, energy price pressures and wider geopolitical uncertainty are continuing to affect business planning. For many SMEs, these pressures are influencing when they invest, how they manage risk and what kind of support they need to grow.

At the same time, sustainability is increasingly being viewed as a practical business opportunity — one connected to efficiency, resilience, reputation and future competitiveness.

Sustainability is becoming a growth conversation

The Reflecting Business findings show that sustainability is no longer a side issue for many SMEs. It is becoming mainstream and part of how businesses plan for the future.

For some, that means investing in energy efficiency. For others, it means building more resilient operations, adapting to changing customer expectations or exploring new ways to create positive environmental and social impact.

The report highlights how sustainability is moving from ambition to action and why practical support, clear information and confidence to invest remain important.

Different sectors, shared pressures

The report also reflects the different ways businesses are experiencing today’s operating environment.

Across sectors, SMEs are navigating rising costs, access to finance, energy pressures, staffing challenges and uncertainty. But the findings also show that businesses are continuing to identify opportunities to grow, adapt and invest.

Read the full Reflecting Business report

Download the full report to explore the latest insights from Irish SMEs, including findings on confidence, growth, sustainability, investment and the challenges shaping the year ahead.