In Azets’ recent study, it was revealed that small- to medium-sized enterprises (SMEs) in the Republic are growing more hopeful about the future in comparison to their outlook at the start of 2024. However, apprehension persists regarding recruitment and retaining talent. There is a noticeable lack of investment in artificial intelligence (AI) solutions among smaller businesses, a stern contrast to the heightened interest exhibited by larger companies.
Azets, an advisory and accountancy company, examined responses from 111 mid-market firms across six Northern European countries for their most recent report. According to the study, Irish respondents, who were the second most optimistic in the region following Denmark, rated their economic prospects at 6.1 on a scale of up to ten.
The report noted that small ventures with ten to forty-nine employees scored 6.5 out of 10, which could be due to reduced worries about deferred tax debt, controlled inflation rates, and encouraging economic growth predictions. However, around a third of the businesses indicated skill shortages as the main issue they’re facing, while 41% are perturbed about meeting financial compensation expectations.
Micro businesses employing nine individuals or fewer had a significant rise in their outlook, from a beginning of year score of 3.7 to a later point score of 5.2. Neil Hughes, the CEO of Azets Ireland, emphasised the necessity of supporting and stimulating growth in the mid-market in the run-up to the 2025 budget, considering the increased optimism among aspiring proprietor-led businesses despite high labour costs, increased regulations, and the payment of deferred tax debt.
Contrastingly, the report underscored a difference of opinion between small and medium-sized businesses regarding AI implementation.
The survey revealed that a staggering 57% of micro-enterprises have no intention of allocating resources to AI in the upcoming year, a stark contrast to medium-sized companies, with 50-249 staff, where a massive 96% are planning to infuse funds into AI within the next twelve months.