Connaught SMEs demonstrate highest capital deployment plans for 2025

• Connaught SMEs plan to invest an average of €213,600 over the next twelve months, the highest figure across all the provinces nationwide
• 42% of SMEs in Connaught feel more confident making major investments now the General Election is over however opinions remain divided on government supports for SMEs
• 28% of Connaught SMEs have implemented AI technology in their operations, and 20% planning to in the future

Business confidence among SMEs in Connaught remains strong with 90% feeling optimistic about their prospects for 2025 despite rising business costs and geopolitical volatility. This is according to research conducted by Bibby Financial Services Ireland, a leading provider of financial support and funding solutions to Irish SMEs.

Almost eight out of ten (78%) businesses say they expect sales to rise over the next six months, with only 6% those surveyed expecting sales to decrease. This is the highest percentage across all provinces.

Connaught businesses surveyed said their top opportunities for the next six months are attracting new customers (56%) and expanding their workforce (40%). In terms of business transitions, 24% are exploring the opportunity of a merger or acquisition and a further 16% are considering the full sale of their business to an outside entity, a higher figure than both Leinster (13%) and Munster (8%).

Connaught SMEs have big plans to invest in the coming months, with 92% intending to do so. When asked how much they plan to invest in their business over the next year, the average figure quoted by businesses, excluding those with no plans, was approximately €213,500. This the highest investment figure, comparing to the national average figure of €193,000. Investing in staff training (42%), recruitment (42%), digital technology/ AI (28%) and machinery and equipment (28%) are the top priorities for Connaught SMEs.

28% of Connaught SMEs have now implemented AI technology in their operations, with another 20% planning to do so. The highest figure across all provinces is in Munster (40%), 10% more than the national average. Across Ireland, AI adoption is highest in the wholesale sector (44%) with SMEs primarily using AI for enhancing customer service (57%), marketing and sales (38%), automating operations (36%) and data analysis and decision making (32%). However, some of the barriers to AI adoption included lack of knowledge (41%), high costs (31%), data security concerns (23%) and fear of using technology (19%).

42% in Connaught say they feel more confident making major investments now the General Election is over, higher than both Leinster (34%) and Munster (36%). However, opinions remain divided on whether the new government will provide better support for SMEs, with one-third nationwide expecting improvement and another third anticipating no change. The top government measures SMEs would like to see include:

• Introduce measures to lower or stabilise business energy bill (42%)
• Simplify taxes and introduce incentives (e.g. reduce corporation tax or business rates) (36%)
• Implement legislation to reduce late or non-payment issues (30%)

Carmel Mulroe, Business Development Manager in Connaught at Bibby Financial Services Ireland, says the results of this survey demonstrate the optimism and hunger for growth among the Connaught SME community despite the challenging geopolitical factors influencing the wider industry.

“It’s always positive to hear that 86% of SMEs in Connaught are optimistic and remain bullish about the months ahead and expect an increase in sale, regardless of outside influences causing uncertainty.

With 42% of respondents saying they feel confident making major investments now that the general election is over, it is crucial that the government support SMEs both large and small by introducing measures such as lower energy costs, tax incentives and legislation to reduce late payments.

Additionally, it’s encouraging to see the willingness and action in the province to adapt to the technology of today, with an expected 48% having implemented AI by next year, showing priorities are turning towards this advancement.

While there are promising signs of recovery, the market is changing and geopolitical divisions are continuing to grow. We must be prepared for these changes and it is vital the government takes action now to safeguard the future of these businesses.”

About Bibby Financial Services Ireland

Bibby Financial Services is Ireland’s largest independent provider of financial funding solutions to Irish SMEs. Operating across the island of Ireland for 18+ years, the company, on average, facilitates over €1m+ a week in new funding limits – in addition to the millions in weekly payments to existing clients - to enable a range of scenarios including cashflow funding, growth and expansion, management buy-ins and buy-outs, refinancing, corporate restructuring and mergers and acquisitions.