The Department of Finance published the latest in its series on SME Credit Demand Surveys. It was published on May 19^th and covers the calendar year 2024.

This is the second year in this survey series that covers a full calendar year. This wave of the survey has been conducted by Ipsos B&A, on behalf of the Department of Finance. It is the most comprehensive survey of SME Credit Demand in Ireland, covering over 1,500 respondents through in-depth discussions.

The survey captures a full picture of the SME landscape in Ireland, with micro-enterprises, small-sized enterprises and medium-sized enterprises accurately represented as per the percentage make-up of SMEs in Ireland.

A survey showed that 20% of SMEs applied for bank finance in 2024, an increase from 18% in 2023. It also showed that of those companies seeking finance, 37% cited working capital/cash flow requirements as the main reason.

The average value of a credit application for new finance was €260,059 last year, up from €185,857 in 2023, while just 9% of SMEs applied for government financial support or other non-bank finance. This represents no change year on year from 2023.

The number of small and medium-sized enterprises (SMEs) that reported an increase in turnover during the last calendar year has declined, with the hotels and restaurants sector seeing a notable decline in trading conditions.

44% of all businesses surveyed reported increased turnover for the calendar year 2024 which is down from 52% in 2023. It said 36% of SMEs reported no change in turnover, while 20% reported a decrease in turnover similar to 2023.

The survey said the hotels and restaurants sector reported one of the lowest net turnovers, with a notable decline seen in trading conditions from 2023 to 2024.

Though profitability among SMEs remains steady with 73% posting a profit last year, down slightly from 74% in 2023, while 9% reported a loss and 15% broke even.

Minister for Finance, Paschal Donohoe TD stated, “I welcome the results of the latest wave of the SME Credit Demand Survey. It provides a critical understanding of the Irish SME landscape. This in turn enables, not only Government bodies, but numerous other businesses and stakeholders, to develop, refine and implement policy measures to support SMEs that are critical to Ireland’s economic performance and a vital source of employment across the country. I would like to thank the businesses that took part in the survey.”

NB – This is a guide for information purposes only and does not constitute legal advice. If you have an issue requiring legal advice, please contact any of the team at Nolan Farrell & Goff LLP, whose numbers can be found on our website www.nfg.ie, or email info@nfg.ie.