Confidence among Ireland’s private businesses and entrepreneurs remains robust despite rising costs, recruitment challenges, and global uncertainty, according to the latest KPMG Enterprise Barometer, conducted in partnership with RED C Research in September.
The KPMG Enterprise Barometer 2025 reveals optimism and ambitious growth among Ireland’s domestic businesses, with the majority (79% ) confident in their growth prospects for the coming year. This optimism marks a significant 7-point increase in sentiment since the start of the year, underscoring the resilience and ambition embedded within this sector.
The main reasons for this confidence are driven primarily by increased customer demand for products and services, cited by nearly 8 in 10 companies (79% ) as the key factor supporting growth, a significant rise from 45% in January 2025.
Other factors contributing to this confidence include plans to enter new markets or launch new products (57% ), and the introduction of new technologies (36% ). Additionally, 1 in 5 (19% ) are looking to integrate AI technologies to streamline processes, reduce costs, and improve operational efficiency, demonstrating a clear focus on margin protection. Encouragingly, turnover expectations have also improved, with 71% anticipating an increase in their turnover over the next twelve months, up from two-thirds in January.
Business Challenges
Despite strong growth expectations, domestic businesses face significant pressures that threaten to limit performance, creating a complex balance between ambition and caution. Labour costs remain the major concern for 75% of firms, a slight decrease from 81% earlier in the year, yet still critical. This is compounded by severe recruitment and retention difficulties (55% ) and intense competition for skilled workers from multinationals (49% ), adding further strain to domestic businesses.
Speaking about the KPMG Enterprise Barometer 2025, Niall Savage, Head of Private Enterprise at KPMG Ireland, says: “Entrepreneurs play a crucial role in building companies, creating jobs, and fostering innovation that strengthens communities. Despite ongoing tariff uncertainties and escalating costs, these businesses exhibit remarkable confidence and optimism, with 79% expressing growth prospects. Understanding their aspirations and challenges is essential for shaping effective policies that nurture this vital sector and secure a prosperous future for entrepreneurship in Ireland. This understanding is not merely a data exercise; it is a policy imperative.”
Jenny Melia, CEO, Enterprise Ireland, said: “Understanding how we can best support our indigenous enterprise base to grow and scale has never been more important, and this comprehensive piece of work undertaken by KPMG offers strong insights on key areas of focus which will help to drive continued growth. Enterprise Ireland’s purpose is to Accelerate Sustainable Irish Business, and it is our long-term ambition that our agile and innovative Irish exporters will become the primary driver of the Irish economy. These innovators and entrepreneurs are economic anchors in towns and villages around the country, and we are committed to supporting them to achieve their global ambition.”
Investment Priorities
Workforce and skills continue to dominate investment intentions, highlighted as the most important area by 38% of respondents, though this has seen a decline from 44% since the start of the year. Investment in innovation has seen the most dramatic increase, rising from 15 % in January 2025 to 26 % in September 2025. This significant rise highlights a clear strategic reprioritisation within the sector. Consequently, the focus on general Technology (including AI, cybersecurity, and digital transformation ) as the main investment priority has lessened compared to the start of the year, falling from 30 % in January to 22 % in September.
