Debt levels among Irish small and medium-sized enterprises (SMEs) jumped last year according to the results of a survey being published by the Department of Finance on Monday.
The SME Credit Demand Survey found that the average Irish SME had outstanding debt in 2024 of just under €444,000, up from €369,000 in 2023.
This average debt ranged from €53,000 among micro businesses to €1.45 million among medium-sized companies.
More than half (54 per cent) of all SME outstanding debt was to retail banks, with the balance owed to nonbank bodies.
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Of the more than 1,500 SME respondents to the survey, some 55 per cent had debt.
The survey also found that the average value of a credit application for new finance in 2024 was €260,059, up from €185,857 in 2023.
Twenty per cent of SMEs surveyed applied for bank finance during the calendar year 2024, up from 18 per cent in 2023.
Of those companies seeking finance, 37 per cent cited working capital/cash flow requirements as the primary reason.
Nine per cent of SMEs applied for Government financial support or other nonbank finance – which represented no change year-on-year.
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Some 44 per cent of all businesses surveyed reported increased turnover for 2024.
This is down from the previous survey for 2023 when it was 52 per cent.
Meanwhile, 36 per cent reported no change in turnover, while 20 per cent reported a decrease in turnover, a level similar to 2023.
According to the Department, the hotels and restaurants sector reported one of the lowest net turnovers, with a “notable decline seen in trading conditions from 2023 to 2024″.
Almost three-quarters (73 per cent) of SMEs reported profit during the calendar year 2024, compared to 74 per cent in 2023.
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Nine per cent reported a loss, while 15 per cent broke even.
The percentage of SMEs exporting in 2024 was 19 per cent, down from 22 per cent the previous year.
The survey was conducted by Ipsos B&A, on behalf of the Department of Finance.
Minister for Finance Paschal Donohoe said the survey “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.”
