Beyond Confidence: Why Irish Private Enterprises Must Now Close the Operational Performance Gap

By Jed Nykolle Harme

March 29, 2026

Photo Credits: Unsplash

Irish private enterprise is operating from a position of genuine strength. The KPMG Ireland and UK Enterprise Barometer, drawing on surveys of over 100 Irish decision-makers and 1,500 UK private business owners, finds Irish business confidence up seven percentage points year-on-year, with 79% expressing confidence in growth and 71% expecting revenues to rise. Yet the data reveals a widening operational performance gap — driven not by lack of ambition but by investment priorities yet to fully align with modern operational demands.

The report reads as an operational excellence diagnosis as much as a confidence survey. Irish businesses are people-led, resilient, and long-term in orientation — genuine strengths. The challenge is that confidence unaccompanied by operational transformation leaves margin on the table. Three fault lines demand boardroom attention: process efficiency; workforce capability; and funding structures.

The process efficiency gap is the most urgent finding. In the UK, 77% of private businesses plan to invest in AI and technology in 2026, with 57% explicitly targeting efficiency gains. In Ireland, only 22% name technology as a top investment priority and 19% identify AI integration as a near-term opportunity. AI-driven process automation is reducing operating costs and improving decision quality across every sector — this gap, compounding annually, will prove costly to close.

Workforce pressure is the second operational fault line. The Barometer finds 75% of Irish business leaders cite labour costs as a primary concern and 55% highlight difficulty recruiting and retaining staff, reflecting housing and regional skill shortages. These are operational risks that drive process bottlenecks, limit capacity, and raise unit costs. The 38% of Irish leaders prioritising workforce investment in 2026 are making the right call; that investment must be linked to AI readiness and process improvement outcomes.

Ireland's funding conservatism is the third constraint. The Barometer finds 83% of Irish leaders want to build enduring companies — a positive long-term signal. Yet only a fifth of Irish owners have considered selling up, while 46% of UK counterparts plan to turn to private equity. Operational transformation at scale requires sustained capital. Irish businesses relying on organic funding alone risk under-investing in capabilities competitors are building now.

Three priorities should anchor Ireland's operational agenda. First, AI adoption must shift from aspiration to execution: the efficiency case is proven and delay is costly. Second, workforce investment should be restructured around AI-compatible skills, turning cost pressure into a performance multiplier. Third, Irish leaders should evaluate capital structures that can fund operational transformation at the pace the market demands.

Ireland's private enterprises are confident, resilient, and exceptionally well-positioned for long-term growth. Leaders who match that confidence with disciplined operational investment in 2026 will build the performance advantage that sustains Irish competitiveness for the decade ahead.

(The views expressed by the writer are his/her own and do not necessarily reflect the views or positions of BusinessRiver.)