KPMG Enterprise Barometer 2024
Resilience will be critical as businesses adapt to sustainability, cybersecurity, digital transformation, and AI issues. Less than half (48 percent) expressed concerns about potential cyber security threats affecting their business continuity, a notable decrease from 93 percent in 2023, suggesting growing confidence in their cyber defence measures. Furthermore, a majority (74 percent) reported their company had never experienced a cyber security attack.
Turning to cybersecurity, our research revealed a mix of preparedness and concerns among domestic companies and entrepreneurs, with most (84 percent) confident handling potential cyber-attacks.
Dani Michaux, Dublin-based EMA Cyber Lead at KPMG, says, “With increasingly advanced technology in the hands of cybercriminals, attacks are now inevitable. Accepting that you are not yet fully prepared and that more work is needed is the first step. Management teams should focus on business continuity for when an attack does occur to ensure that they can continue to support their employees and customers.”
With increasingly advanced technology in the hands of cybercriminals, attacks are now inevitable.
AI readiness
Domestic businesses and entrepreneurs display varying degrees of readiness and involvement when adopting AI. In terms of its role in strategy and operations, it is still in the early stages for most domestic businesses; only one-fifth (21 percent) say they have a defined AI strategy, with 1 in 5 (23 percent) claiming AI has contributed to their competitive advantage. Only 19 percent acknowledge that integrating AI technologies has impacted their business operations and efficiencies and 15 percent think AI will reduce their workforce.
Previous KPMG studies show that generative AI remains a top business investment, according to almost three-quarters (73 percent) of Irish CEOs, slightly higher than the global average of 70 percent. CEOs’ top five benefits from implementing generative AI are profitability, new product and market growth opportunities, increased innovation, increased efficiency, and job creation.
However, CEOs cite a lack of technical capability and skills to implement it when it comes to the barriers to organisational success caused by generative AI. Meanwhile, over half of the Irish CEOs (57 percent) believe the return on investment in AI will take more than five years.
Supporting sustainability
A substantial four in five respondents expressed support for increased action on climate change, demonstrating a collective awareness of environmental challenges. Moreover, 68 percent claimed to actively pursue sustainability measures within their operations and two-thirds (67 percent) reviewed their overall business operations in light of sustainability.
Concerns persist regarding the financial implications of green initiatives, with 57 percent worried that an increase in green initiatives will lead to a rise in costs for their business and over half (53 percent) concerned they won’t fully understand the costs and benefits of sustainability.
Turning to sustainability reporting, by 2026, many larger domestic businesses will have to comply with EU regulations such as the CSRD, which represents a significant step-change in corporate reporting. Companies should initially determine whether they are in the scope of the CSRD directly or indirectly through being part of a broader supply chain. Most entities impacted will have to report from 2025, so early preparation is key.
By taking proactive measures to address sustainability concerns, businesses can mitigate environmental risks and unlock opportunities for innovation, cost savings, and long-term resilience in an increasingly sustainable marketplace.
Valuing entrepreneurship
Finally, nearly half of the survey respondents (49 percent) feel that Irish society places an important value on entrepreneurship compared to other countries. While encouraging, it raises interesting societal and economic issues given that half of our respondents by definition don’t perceive Ireland in this way. Undoubtedly more work is needed to understand how attitudes can become more positive towards entrepreneurship.
This is particularly important given the vital role played by entrepreneurs in Ireland’s economic growth, innovation, and job creation and the further and as yet unrealised potential they represent.
KPMG is committed to supporting domestic entrepreneurship, fostering innovation, and empowering entrepreneurs and fast-growing companies to achieve their business goals.
KPMG’s dedication to enterprise and entrepreneurship drives us to continue supporting unique programmes for ambitious entrepreneurs like Going for Growth, Inspiring Women Entrepreneurs, Endeavor Ireland and the KPMG Private Enterprise Global Tech Innovator annual competition.
Get in touch
At KPMG, we are committed to encouraging and supporting domestic entrepreneurship and helping companies in Ireland grow. Our teams work nationwide to support privately owned and entrepreneurial businesses to achieve their ambitions.
If this sounds like you, we should be talking. We look forward to hearing from you.
Alan Bromell
Partner & Head of Private Enterprise
KPMG in Ireland
Dani Michaux
EMA Cyber Leader
KPMG in Ireland
