Supporting Small Businesses in 2025: The New Irish Government’s Plan

By Stephen Broadbent

The new Irish government has unveiled a comprehensive plan to support small businesses in 2025, aiming to foster growth, innovation, and resilience in the SME sector. This plan is part of a broader strategy to create a vibrant economy and ensure that small businesses, which make up over 95% of all companies in Ireland, continue to thrive.

Key Initiatives

1. Financial Support and Grants The government has introduced a new €170 million Power Up Grant specifically designed for businesses in the retail and hospitality sectors. This grant aims to alleviate some of the financial pressures faced by small businesses, particularly in light of rising energy costs.
2. Tax Incentives Several tax measures have been implemented to encourage and incentivize innovation. The first-year payment threshold for the R&D tax credit has been increased from €50,000 to €75,000, providing further cash-flow support to companies undertaking smaller R&D projects. Additionally, the VAT registration thresholds for the supply of goods and services have been raised to €85,000 and €42,500, respectively1.
3. Investment in Startups The government has allocated €9.7 million to Enterprise Ireland to fund innovative startups and targeted decarbonization supports. This investment is expected to boost the startup ecosystem and encourage the development of sustainable business practices.
4. Employment and Training Recognizing the importance of a skilled workforce, the government has pledged to assess all elements of labor market policy that impact the viability of SMEs. This includes working with the voluntary sector to address pay issues and developing a new workforce plan to attract and retain staff in critical sectors2.
5. Infrastructure and Digitalization To support the digital transformation of small businesses, the government has committed to increasing investment across regulatory offices and providing additional funding for digital infrastructure. This will help small businesses adopt new technologies and improve their operational efficiency.

Long-Term Vision

The government’s plan is not just about immediate support but also about creating a sustainable and resilient business environment for the future. By focusing on strategic investments, supportive enterprise policies, and fostering a vibrant economy, the government aims to create 300,000 extra jobs by 2030.

Conclusion

The new Irish government’s plan to support small businesses in 2025 is a comprehensive and forward-thinking approach that addresses the immediate needs of SMEs while laying the groundwork for long-term growth and sustainability. With financial support, tax incentives, investment in startups, and a focus on employment and digitalization, small businesses in Ireland are well-positioned to thrive in the coming years.