New IoD Ireland research reveals directors and business leaders views on Budget 2026. This new research addresses drivers for growth and obstacles to business growth.
As many as 69% of directors and senior executives believe that Government investment in infrastructure should be prioritised in Budget 2026 to enhance Ireland’s competitiveness, a new survey conducted by the Institute of Directors (IoD) Ireland, has revealed. This is followed by reduced energy costs (22%), simplifying regulation (13%) and global competitiveness and tariffs (12%).
The survey was undertaken on foot of the publication of the Government’s new Action Plan on Competitiveness and Productivity, which also commits to tackling the over-regulation concerns of Irish businesses. Asked if they believed that regulation is stifling growth and competitiveness, 67% of respondents in the survey said yes. When also asked if the cost of carrying out business had increased for their organisation since Budget 2025, 90% of respondents said that it had.
When asked about the biggest obstacle to growth, business development and effective competitiveness, 21% of members chose economic and fiscal pressures, 13% picked cost of business and 9% identified regulatory complexity. Other obstacles chosen by members included international trade tensions and increase of tariffs (17%) and talent acquisition and retention challenges (18%).
However, despite all these challenges, 70% of businesses still expect to grow by year end, respondents indicated. When asked about recruitment plans, 58% of respondents said that they would maintain current staff numbers, 33% said they would increase staff numbers and 10% plan to make a reduction.
Commenting on the survey results, Caroline Spillane CDir, CEO of IoD Ireland, stated:
“The cost of doing business in Ireland continues to rise sharply, putting real pressure on firms of all sizes. While business leaders strongly support significant investment in infrastructure (such as housing, energy, water, transport and broadband) as a foundation for long-term competitiveness, they also need immediate relief from escalating costs and regulatory burdens. Encouragingly, many remain confident about growth prospects this year, reflecting the resilience of Irish enterprise.
Spillane continued:
We welcome the commitments set out in the Government’s Action Plan on Competitiveness and Productivity, particularly on regulatory reform, but it is essential these translate quickly into tangible progress. At the same time, businesses are signalling a shift towards future-focused drivers of growth such as innovation, digital transformation, and customer engagement. With the right mix of smart policy, targeted investment, and streamlined regulation, Ireland can maintain its competitive edge and create the conditions for sustainable growth.”
The survey findings underscore the difficulties being faced by directors and senior business executives when trying to be competitive in today’s economy. Looking towards the rest of 2025. 21% of members said that digital transformation and innovation is the highest driver for business growth to aid competitiveness. Enhancement of products or services (19%), increased customer/client experience and engagement (17%) and Generative AI (12%) were also seen to be important aspects to be considered for a business to be competitive.
The Institute of Directors (IoD) Ireland Snap poll 2025, highlights the perspectives of 385 business leaders on key issues including regulation, competitiveness, and economic outlook and was conducted from the 3rd to the 22nd September. The directors surveyed are all IoD Ireland members and represent a wide range of businesses as well as State or semi-State bodies, not-for-profit organisations, SMEs, and plc/ multinationals.
IoD Ireland is dedicated to developing and improving the effectiveness and performance of directors and boards throughout Ireland. IoD Ireland’s CPD framework for directors, c-suite and senior executives, and boards helps to drive higher standards in corporate governance in response to the ever-evolving policy, regulatory, macro-economic and governance environment in Ireland.
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