Business survey results should be ‘ringing alarm bells’

A fifth of small businesses in Northern Ireland say they have shrunk in the last year, according to a survey by Enterprise Northern Ireland.

The 2025 Enterprise Barometer found weak cashflows, the rising costs and challenges with skills and technology are widespread issues.

It is the seventh year the organisation, which represents 27 Local Enterprise Agencies in the region, has carried out the study of micro, small and self-employed businesses.

Its chief executive said the results should be “ringing alarm bells”.

Michael McQuillan said: “Our entrepreneurs are sending a very clear message: the ambition is absolutely there, but pressure is halting progress.

“Businesses want simple, visible, joined-up support.

“They want clarity, consistency and a system that moves as fast as they need it to.”

He added: “It would be reckless not to listen to them.”

However, 56% of businesses did say they felt optimistic about growth in the coming year, up from 43% of businesses last year.

Rising costs were found to be a major challenge, with 78% of those surveyed saying theirs had increased in the last year.

Utilities, raw materials, and insurance were named as the areas which impacted the most businesses.

Two thirds said issues in the labour market were putting them under strain and limiting growth, with over half saying it is difficult to find the right skills.

A third said their cashflow position is weak or critical.

The research also found AI was an issue frequently raised by respondents who said they needed support with the new technology.

Northern Ireland’s Minister for the Economy, Dr Caoimhe Archibald said: “As cost pressures continue to mount, the resilience and ambition shown by our entrepreneurs continues to impress.”

She said that her department is “committed to driving local economic growth and promoting regional balance”.

Economist Maureen O’Reilly said: “This year’s Barometer provides one of the clearest indications yet that the pressures facing our small and micro businesses are becoming deeply embedded.

“The resilience and ambition shown by many firms is remarkable, but we cannot ignore the fact that one in five are now contracting and a significant number are experiencing prolonged financial strain.”