The Department of Finance has released the latest edition of its SME Credit Demand Survey, capturing data from across the 2024 calendar year. Conducted by Ipsos B&A on behalf of the Department, this is the second annual survey in the series to cover a full calendar year and remains the most comprehensive assessment of SME credit demand in Ireland. The latest wave includes insights from over 1,500 businesses, gathered through detailed interviews.
The survey offers a representative snapshot of the SME sector, including micro, small, and medium-sized enterprises, aligned with their proportionate presence in the Irish economy.
Bank Finance Applications:
20% of SMEs applied for bank finance in 2024, up from 18% in 2023. Among these, 37% cited working capital or cash flow needs as their primary motivation.
Government and Non-Bank Support:
9% of SMEs sought government financial support or other non-bank finance, showing no change from the previous year.
Internal Funding Reliance:
74% of businesses that did not seek external credit reported having sufficient internal funds as their main reason.
Turnover Trends:
44% of SMEs reported an increase in turnover in 2024, a decline from 52% in the 2023 survey. 36% saw no change, while 20% experienced a decrease—consistent with 2023. The Hotels & Restaurants sector showed one of the weakest performances, with a significant downturn in trading conditions.
Profitability:
73% of businesses reported a profit in 2024, slightly down from 74% in 2023. 15% broke even, while 9% reported a loss.
Credit Application Values:
The average value of new credit applications rose to €260,059 in 2024, compared to €185,857 the previous year.
Outstanding Debt Levels:
Average SME debt increased to nearly €444,000, up from €369,000 in 2023. Debt levels ranged from €53,000 among micro-enterprises to €1.45 million for medium-sized firms. Retail banks accounted for 54% of all SME debt, with the remainder owed to non-bank lenders.
Exporting Activity:
The proportion of SMEs engaged in exporting declined to 19%, down from 22% in 2023.
Commenting on the survey, Minister for Finance Paschal Donohoe TD stated:
“I welcome the findings of this latest SME Credit Demand Survey. It offers a vital insight into the dynamics of Ireland’s SME sector, which plays a central role in our economy and employment landscape. These results inform policy decisions not just at Government level but also for businesses and support agencies working with SMEs. I wish to thank all the businesses that participated in this important research.”
The findings underscore the evolving needs and challenges of Irish SMEs, as well as their continued importance to national economic growth and resilience.
