Ireland’s private businesses are reporting high growth confidence despite rising costs and talent shortages, according to KPMG’s Enterprise Barometer 2025.

Niall Savage, head of Private Enterprise at KPMG, said: “Entrepreneurs play a crucial role in building companies, creating jobs and fostering innovation that strengthens communities. 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.”

Increased customer demand drives confidence, cited by 79 per cent of firms, up from 45 per cent earlier this year. Expansion into new markets or product launches (57 per cent) and technology adoption (36 per cent) also support growth.

Labour costs remain the top concern for 75 per cent of firms, while recruitment and retention issues (55 per cent) and competition for skilled talent (49 per cent) continue to challenge businesses.

Investment priorities are shifting. Workforce and skills lead at 38 per cent, while investment in innovation has grown from 15 per cent to 26 per cent since January. General technology investment has decreased to 22 per cent.

Most firms (83 per cent) focus on building enduring businesses, with only 19 per cent considering selling to mitigate risk.

Jenny Melia, CEO of Enterprise Ireland, said: “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.”

KPMG’s Private Enterprise teams provide guidance across investment, scaling, and business growth.

Explore the complete story for a full view of how Irish businesses are managing growth and workforce pressures.

Photo credits to KPMG’s official website