Number of SMEs seeing rise in turnover on decline, survey shows

Hotels and restaurants sector shows a notable decline in trading conditions

The hotels and restaurants sector has reported one of the lowest net turnovers. File picture

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, a new survey has shown.

According to the latest SME Credit Demand Surveys, conducted by the Ipsos B&A on behalf of the Department of Finance, 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.

The survey included in-depth discussions with 1,500 people working micro-enterprises, small-sized enterprises, and medium-sized enterprises across the country. It covers the calendar year 2024.

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.

Average outstanding debt from €440k

The survey found that the average Irish SME had outstanding debt of €440,000, up from €369,000 in 2023. 

Average outstanding debt ranged from €53,000 among micro businesses to €1.45m among medium-sized companies.

More than half of all SMEs’ — 54% — outstanding debt was to retail banks, with the balance owed to non-bank bodies.

One in five SMEs applied for bank finance during last year, of which 37% cited working capital/cash flow requirements as the primary reason, while 9% applied for government financial support or other non-bank finance.

The average value of a credit application for new finance was €260,059 up from €185,857 year-on-year.

Speaking on the publication of the survey, finance minister Paschal Donohoe said the data provided “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”.