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The Drivers of SME Investment in Ireland

Author

Listed:
  • Mahony, Michael

    (Central Bank of Ireland)

  • O'Neill, Cian

    (Central Bank of Ireland)

Abstract

While many Irish SMEs report making investments, the euro value of these investments is small. This pattern is explained by firms being satisfied with their current size and investment rates, rather than by a lack of external finance. When Irish SMEs do expand, their preference is to fund with internal cash resources rather than to borrow. Around a quarter of SMEs state that external finance constraints are a barrier to investment, but factors like recent growth and attitudes to risk are statistically more important in explaining investment patterns across firms.

Suggested Citation

  • Mahony, Michael & O'Neill, Cian, 2025. "The Drivers of SME Investment in Ireland," Central Bank Staff Insights 3/SI/25, Central Bank of Ireland.
    • Handle: RePEc:cbi:stafin:3/si/25
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    File URL: https://www.centralbank.ie/publication/research-publications/staff-insights/the-drivers-of-sme-investment-in-ireland
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