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      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.

      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.

      Download our Enterprise Barometer report
      Niall Savage
      Niall Savage

      Partner, Head of Private Enterprise, National Chairperson of Audit Committee Institute

      KPMG in Ireland

      Key findings

      Confidence drivers

      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

      Entrepreneurs play a crucial role in building companies, creating jobs, and fostering innovation that strengthens communities.
      Niall Savage

      Head of Private Enterprise

      KPMG in Ireland

      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, said: “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.

      Knowing 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.”

      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.

      Jenny Melia

      CEO

      Enterprise Ireland

      Jenny Melia, CEO, Enterprise Ireland said: “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. 

      Entrepreneurial mindset

      Most (83%) state that their core objective is to build a large, enduring company, rather than pursuing a quick sale or a short-term 'cash out' strategy. This statistic underscores a deep-seated ambition for legacy and scale that forms the bedrock of Ireland’s entrepreneurial ecosystem.

      Nearly half (47%) of respondents hold the conviction that entrepreneurship is not something that can be learned but is instead an innate trait one is born with. Meanwhile, less than 1 in 5 (19%) have considered selling their business to ‘cash out’ and mitigate risk further reinforces that for most, the primary value is found in the act of creation and scaling.

      While over a third (35%) of respondents acknowledge the Irish Government's active support for entrepreneurship as a driver of economic growth, this positive sentiment does not yet fully translate into confidence in specific policy effectiveness.

      Indeed, only a quarter (25%) feel Government measures are currently effective in encouraging domestic businesses and entrepreneurs to continue operations rather than selling them.

      This sentiment is reinforced by concerns over resource availability, with just 24% agreeing there are sufficient financial incentives to help private businesses and entrepreneurs scale.

      Download the complete Enterprise Barometer report

      Contact our Private Enterprise team for more

      Survey objectives and methodology

      The KPMG Enterprise Barometer is an annual study that tracks confidence, sentiment, and strategic priorities among Ireland’s private business leaders and entrepreneurs.

      As part of KPMG’s commitment to supporting private and family-owned enterprises who are considered the backbone of Ireland’s economy, this research aims to provide actionable insights and foster informed policy dialogue.

      Fieldwork for the Enterprise Barometer 2025 was conducted on behalf of KPMG by RED C Research in January and again between September 8th and 26th, 2025.

      This survey targeted a representative sample of companies within Ireland's entrepreneurial sectors, engaging over 100 key decision-makers from private businesses and entrepreneurs. Each employing between 7+ and 100+ people across various sectors were interviewed. 

      Read more from our Private Enterprise team

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