Barriers to finance decline for SMEs in NI — but cash flow issues persist, report finds

The research by Enterprise Northern Ireland and the British Business Bank said numbers had improved slightly on previous years and were similar to levels reported in Wales.

But at 18%, the percentage experiencing barriers when accessing finance was higher than in Scotland, where 13% faced the same issue. The Access to Finance Report 2026 found that just over half (56%) of SMEs here were using external finance, the lowest percentage among the UK’s devolved nations.

However, demand for funding remained strong, with 42% of smaller businesses anticipating a need for additional finance over the next 12 months, while just over half of those expected to require finance felt confident about securing it.

Cash flow was a key concern for many businesses, with 69% of NI SMEs reporting a positive cash flow position — lower than Scotland and Wales at 85% and 80% respectively.

Among those reporting negative cash flow, weak demand or sales pipeline was most commonly cited.

SMEs in the southern part of NI were most likely to report using external finance, at 61%, while businesses in Belfast were most likely to report not having barriers to accessing finance.

News Catch Up – Thursday 22 January

Overall, SMEs here were found to be the most optimistic about their growth prospects among the devolved nations, with 56% expecting growth, compared with 49% in Scotland and 30% in Wales.

Michael McQuillan, chief executive of Enterprise NI, said: “The fact that Northern Ireland businesses are the most optimistic about future growth is extremely encouraging, but optimism alone is not enough if businesses are unsure whether they can secure the funding required to realise those ambitions.

“We know that both the optimism and ambition are there, and what we now need is a well-tailored support system for local enterprise.”