SFA Survey Reveals 44% Surge in Cumulative Business Costs Over Three Years
Last week, the Small Firms Association (SFA) has released its 2026 Annual Small Business Survey, conducted by Amárach Research, revealing an alarming 44.4% cumulative increase in average business costs over the past three years. Within the last 12 months alone, overheads spiked by an additional 10.9%, highlighting a relentlessly aggressive high-cost environment that leaves little room for small enterprises to breathe. The nationwide study of over 400 small businesses identified the biggest strains on company budgets:
- Employee & Labour Costs: Cited by 50% of respondents.
- Energy (Gas & Electricity): Impacting 44%.
- Insurance & Raw Materials: Creating severe pressure for 39% and 37% of firms, respectively.
State-imposed labour costs - such as adjustments to the National Minimum Wage, statutory sick pay, and the rollout of Auto-Enrolment—have significantly compounded these issues. Consequently, vital financial buffers are evaporating. A stark 59% of small firms report having six months or fewer of financial reserves, while nearly half warn they could face critical liquidity challenges within the next three months without intervention.
Compounding this vulnerability is a rigid financing landscape; high borrowing costs and economic uncertainty have prevented one in five firms from seeking necessary short-term capital. SFA Director David Broderick has described this as a "canary in the coalmine" moment for the wider economy. In response, 90% of members surveyed are calling for immediate government action. The SFA is actively lobbying for targeted reliefs, including a freeze on the National Minimum Wage, a freeze on commercial rates, a temporary PRSI rebate, and state utility supports. Small businesses are the backbone of our communities, and decisive policy action is required now to protect their survival.
For any questions about this topic, please contact SFA Public Affairs Lead, Jonathan McDade on Jonathan.McDade@sfa.ie.
