Irish businesses are the second most optimistic in Northern Europe and plan to invest heavily in cybersecurity, according to the Azets Barometer Survey.
The survey tracks responses from micro, SMEs and large businesses from Ireland, Denmark, Finland, Norway, Sweden and the UK.
Irish respondents rated their business prospects at 6.1 out of 10, the second-highest on the list behind Denmark (6.8).
Sentiment among micro-businesses (under nine employees) in Ireland has improved, rising from a score of 3.7 out of 10 at the start of 2024 to 5.2 in the latest survey, while the scores SMEs rose to 6.5. Large businesses (over 250 employees) were the most optimistic, with a 7.1 score.
Labour shortages again reared its head as a main concern, with Irish businesses ranking talent recruitment and retention as its main challenge, along with economic uncertainty (both 6.0). Geopolitical uncertainty and competition (both 5.8) followed closely behind.
In relation to workers, compensation and benefits (41%), competition from other employers (36%), and skills shortage in the labour market (33%) were the main challenges to retaining talent. Irish respondents were noted for the belief in their ability to retain talent in a challenging labour market, compared to their European competitors.
Neil Hughes, CEO of Azets Ireland, said that the results show that businesses are “generally confident about the future” and with the country’s economic prospects.
“Despite facing higher labour costs, increased costs, higher levels of regulation, and the payment of warehoused tax debt in recent times, it is positive to see the growing levels of optimism among ambitious owner managed businesses,” Hughes said.
“As we look ahead to Budget 2025, is important that growth in the mid-market is nurtured and encouraged over the coming months.”
The survey also revealed that 91% of Irish businesses are planning to invest in cybersecurity measures, followed by recruitment and talent acquisition (89%), digitalisation (88%) and employee retention (87%).
Recruitment will see the largest amount of funds allocated to it, with 44% of respondents planning to invest at least €60,000.
Despite microbusinesses being the most willing to invest in cybersecurity, they are also the least likely to invest in AI, with more than half (57%) not planning any AI investment, compared with 4% of SMEs.
“It’s clear from the Azets Barometer that Irish businesses are prioritising investments in cyber security and people as they look to protect their data and grow their workforce,” Hughes continued.
“However, the barometer reveals that smaller Irish firms risk being left behind in the AI race. Now is the time for micro businesses in particular to start accessing the potential of this transformative technology and how best to start adopting it across their organisation.”
Ireland was noted for having the highest level of succession planning, scoring 6.3, compared with an average of 5.1 in other countries. On average, Irish firms also prepare their cashflow forecast 11.4 months in advance.
(Pic: Getty Images)
