Almost three quarters of Irish medium-sized companies are predicting a positive future, the latest International Business Report from Grant Thornton reveals, better than the euro zone average.
The Grant Thornton survey, which looks at the attitudes of 10,000 mid-market businesses across 28 countries, shows that 73% of Irish medium-sized companies surveyed are predicting a positive future compared to the euro zone average of 59%.
Grant Thorton said that 57% of Irish firms surveyed predict their revenues will grow over the next year, while 59% predict higher profits and 52% expect to increase their headcount over the next 12 months.
Irish businesses said that geopolitical disruption is unlikely to prove to be a constraint on their ability to grow, with only 17% of Irish firms surveyed registering it as a concern, compared to a euro zone average of 42% and a global average of 49%.
The survey also shows that 27% of Irish companies see economic uncertainty as a barrier to growth, compared to 46% of their European and 55% of their global peers believing that it would be a negative factor.
But despite the positive outlook, energy costs continue to weigh on the mood of the Irish business community, with 43% of firms identifying utility bills as their main growth constraint.
The research study also found a significant difference in attitudes to innovation between participating Irish firms and their international peers, with 24% of Irish businesses prepared to increase R&D investment over the next 12 months compared to 48% of their euro zone and 60% of their global peers.
There was a similar gap in levels of planned technology investment, with 48% of Irish firms budgeting for an increase compared to 58% of European and 67% of global medium sized firms.
Grant Thornton’s Head of Deal Advisory Patrick Dillon said that despite current and potential geopolitical risks on the horizon, Irish businesses are remarkably positive in their outlook for the future.
“Having navigated the pandemic, the cost-of-living crisis and disruption in global supply chains in recent years, these firms have proved their resilience and have a noted level of confidence in an uncertain world,” Mr Dillon said.
“It will be important, however, not to rest on our laurels by overlooking the opportunity to invest in innovation in order to gain a competitive advantage in a global marketplace,” he added.
