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Quarterly Business Insights

Northern Ireland’s growth story must include its smallest businesses

11th Aug 2026

Neasa Quigley, President, NI Chamber

Published last week, NI Chamber’s latest Quarterly Business Insight survey offers a timely reminder that headline economic performance can sometimes obscure a much more complex reality.

The Q2 26 survey, delivered in partnership with Queen’s University, shows that Northern Ireland compared favourably with many other UK regions in areas including exports investment and recruitment. That is a credit to the ambition and determination of our business community. Yet behind some of those encouraging indicators sits a growing concern about the experience of the smallest firms in our economy. The survey shows that while many businesses are performing well, a significant minority are under strain and that pressure is falling disproportionately on small and micro enterprises.

For those of us who work closely with businesses across Northern Ireland, this should give pause for thought. SMEs account for the overwhelming majority of firms here. They employ people in every town village and city. They are the local manufacturers, professional services firms, retailers and hospitality operators that contribute so much to the character and vitality of our economy. When those businesses are finding conditions difficult, it is not a niche issue. It is an economic challenge with consequences for communities right across Northern Ireland.

The survey findings are stark. Only 62% of micro firms reported trading well or reasonably in the second quarter of this year. Almost four in ten are either just covering their costs or struggling. The gap between their experience and that of larger businesses is substantial and points to a widening divide in the ability of firms to absorb shocks and manage rising costs.

What makes this particularly concerning is that many of the pressures identified in the survey are not temporary. Labour costs remain the dominant concern for businesses of all sizes. Energy costs continue to undermine competitiveness and skills shortages persist across sectors. These are structural challenges that have featured in NI Chamber surveys for many years and they show little sign of easing. For larger organisations, these pressures are significant. For a business employing five, six or eight people, they can quickly become overwhelming.

The findings also demonstrate how international events can have very local consequences. Almost seven in ten firms reported a negative short-term impact arising from conflict in involving Iran and the resulting market volatility. While larger firms are more likely to report some level of impact, micro businesses are considerably more likely to report that impact as severe. More than one in five say it has had a very negative effect on their business, reflecting the reality that smaller firms often have less capacity to manage disruption or accommodate prolonged uncertainty.

At the same time there are reasons for cautious optimism. Investment intentions remain positive. Recruitment activity remains high and Northern Ireland continues to perform

strongly when compared with many other UK regions. Those strengths matter and they provide a solid foundation for future growth.

However, it would be a mistake to assume that resilience alone is enough. Businesses cannot build long-term growth strategies on resilience. They need an operating environment that supports investment rather than delaying it, which means addressing issues which have become familiar but no less urgent including wastewater capacity, planning delays, skills availability and energy costs. Progress in these areas would have a positive impact across the economy but it would be particularly significant for small and micro businesses which have less room for manoeuvre.

As President of NI Chamber, I am encouraged by the determination that businesses continue to demonstrate in difficult circumstances. Yet I am equally conscious that behind the regional rankings and economic indicators are thousands of entrepreneurs and business leaders in all sectors making difficult decisions every day.

Northern Ireland has many strengths on which to build but if we want sustainable and inclusive economic growth, we must pay close attention to the firms that are finding it hardest to keep pace. Supporting small businesses is not simply about helping the smallest firms, it is about strengthening the foundations of the entire economy.