Ireland’s small business landscape in 2026 is defined by resilience, disciplined ambition, and strategic investment , even as the operating environment becomes more volatile. The latest data paints a picture of SMEs that are optimistic, growth‑oriented, and increasingly selective , focusing on productivity, digital capability, and financial control. The Current SME Climate in Ireland SME optimism remains exceptionally strong at 83% , despite renewed inflationary pressure and global volatility. Confidence is underpinned by solid domestic demand and sustained sales momentum. Sales performance is robust : 60% of SMEs report increased sales over the past six months. 71% expect sales to rise again in the next six months. Cost pressures are intensifying : Operating costs have risen 10% on average . 81% of SMEs report margin compression. Energy costs and general inflation remain the top concerns. Access to finance is tightening , with 57% of SMEs saying funding has become more difficult in the past six months — a notable rise from 2025. Cashflow fragility is increasing : 22% cite cashflow constraints as a material issue. 27% say they lack the cashflow needed to grow. Investment appetite remains high but more selective : SMEs are prioritising investments that deliver measurable productivity gains, digital capability, and operational resilience — especially automation and AI. Sectoral performance is shifting : The Digital ecosystem is forecast to lead SME employment growth in 2026 at 3.3% , with real value added rising 1.0% after two exceptional years. Micro enterprises continue to show strong value‑added growth (29.7% in 2025), signalling high agility and innovation capacity. Macro‑economic backdrop : Modified Domestic Demand is moderating from 4.9% in 2025 to 2.9% in 2026, while inflation has risen to 3.6% driven by energy costs — reinforcing the need for financial discipline. What This Means for Ireland’s Small Businesses in 2026 What This Means for Ireland’s Small Businesses in 2026 Taken together, these indicators show a sector that is: Resilient — maintaining high confidence despite tighter margins and global uncertainty. Strategic — shifting from broad expansion to targeted investment in digital capability, productivity, and resilience. Ambitious — with strong sales momentum and continued appetite for growth. Disciplined — watching margins closely, managing cashflow carefully, and raising the bar for investment decisions. This is not a retreat — it is controlled, intelligent growth . SMEs are adapting to a more complex environment with sharper financial management and a focus on capability‑building.

London entered 2026 with steady but slower growth, a softening labour market, and persistent global pressures shaping business conditions. Growth continues, but the balance of risks is tilted to the downside due to geopolitical shocks and supply chain disruptions. Key Economic Indicators GVA growth forecast: 1.7% in 2026 , rising to 2.0% in 2027 and 2.1% in 2028 Workforce jobs growth: 0.5% in 2026 , increasing gradually through 2028 Household spending: Expected to grow 1.0% in 2026 , improving slightly in subsequent years Household income: Forecast to rise 1.2% in 2026 , with modest increases through 2028 Macro Risks Affecting London SMEs GLA Economics highlights several external pressures shaping London’s outlook: Middle East conflicts disrupting oil, gas, and fertiliser supply chains Strait of Hormuz closures causing commodity volatility Inflationary pressures continuing into 2026 Cost‑of‑living concerns affecting consumer demand These factors mean London’s growth is continuing — but under strain.