Small and medium-sized enterprises (SMEs) are the backbone of Northern Ireland's economy. They create jobs, drive innovation, support local communities and provide opportunities for people to build businesses that reflect the strengths of our towns and cities. If we are serious about delivering sustainable economic growth, then supporting our SME community must remain a central priority.
Northern Ireland is home to more than 81,000 VAT and PAYE-registered businesses, with almost nine in ten (89.3%) employing fewer than ten people. Micro-businesses dominate our economy, while only 2.2% of firms employ 50 or more people. These figures highlight just how important small businesses are to our economic success and why policies designed with SMEs in mind can have such a significant impact.
Despite ongoing economic uncertainty, our entrepreneurs continue to demonstrate resilience and ambition. Many are investing in digital technologies, expanding into new markets and creating high-quality employment across manufacturing, retail, tourism, professional services, and the growing technology sector. However, they also face significant pressures, including rising operating costs, access to finance, skills shortages and increasing regulatory demands.
The latest evidence also shows that Northern Ireland has one of the lowest levels of SME use of external finance among the UK's devolved nations. While cautious borrowing reflects responsible business management, it also suggests that many firms may not be accessing the investment needed to innovate, scale and compete internationally. Improving awareness of funding opportunities and ensuring businesses can access tailored financial support should therefore be a priority.
Supporting SMEs means creating an environment where businesses can grow with confidence. That includes reducing unnecessary bureaucracy, investing in transport and digital infrastructure, strengthening links between education and industry, and ensuring our workforce has the skills employers need both today and in the future. It also means championing entrepreneurship, encouraging start-ups and helping family businesses successfully transition between generations.
Northern Ireland has unique advantages. Our skilled workforce, world-class universities, strong manufacturing heritage and privileged access to both UK and EU goods markets provide businesses with opportunities that few other regions can match. By building on these strengths, we can attract investment while helping locally owned businesses expand and prosper.
Economic growth is strongest when it is inclusive. Thriving SMEs create employment in every constituency, strengthen local supply chains and keep wealth circulating within our communities. When small businesses succeed, they help revitalise high streets, support charities, sponsor grassroots sport and provide opportunities for the next generation.
The future of Northern Ireland's economy will be shaped not only by major investors, but by thousands of ambitious entrepreneurs prepared to take risks, create jobs and invest in their communities. By backing our SME sector with practical support, smarter regulation and long-term investment, we can unlock greater productivity, encourage innovation and build a stronger, more resilient economy that delivers prosperity for everyone.
This article first appeared in the Irish News on 18th August. To discuss any aspect, please contact Stephen McConnell, Business Services Partner E: stephenmcconnell@bakertillymm.co.uk T: 028 9032 3466.
Related content
