The latest Access to Finance Report 2026, published by Enterprise Northern Ireland and the British Business Bank, reveals that 18% of Northern Ireland’s small and medium-sized enterprises (SMEs) experienced barriers when accessing finance – a slight improvement on previous years and broadly in line with Wales (19%), but higher than Scotland (13%).
The research shows that just over half (56%) of Northern Ireland SMEs are currently using external finance, the lowest proportion among the UK’s devolved nations. Despite this, demand for funding remains strong, with 42% of smaller businesses anticipating a need for additional finance over the next 12 months.
Encouragingly, 53% of those expecting to require finance said they feel confident about securing it, although this still indicates that almost half of SMEs remain uncertain about their ability to access the funding they need.
Cash flow remains a key concern for many businesses. While 69% of Northern Ireland SMEs reported a positive cash flow position, this is significantly lower than in Scotland (85%) and Wales (80%). Among those reporting negative cash flow, weak demand or sales pipeline was most commonly cited, particularly among businesses in the North East and East regions of Northern Ireland.
The report highlights notable sub-national variations in access to finance and business sentiment:
- SMEs in the South region (Newry, Mourne and Down and Armagh, Banbridge and Craigavon council areas combined) were the most likely to report using external finance (61%).
- Belfast-based businesses were the most likely to report experiencing no barriers to accessing finance, at a rate slightly above the Northern Ireland average.
- SMEs in the North West were the most likely to anticipate requiring additional finance in the year ahead (60%) and also reported the highest growth expectations, with 63% expecting to grow over the next 12 months.
Overall, Northern Ireland SMEs 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, Enterprise Northern Ireland, said:
“This year’s Access to Finance report shows that while fewer SMEs are facing barriers to accessing finance, significant challenges remain, particularly around confidence and cash flow. 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. Businesses want simple, visible, joined-up support.
“Now in its third year, the SME Access to Finance report, produced in partnership with the British Business Bank, provides clear evidence to help shape more effective, locally tailored finance supports. Reinforcing the NI Enterprise Barometer, its findings underline the need to ensure SMEs, predominantly small and micro businesses, across every part of Northern Ireland understand their finance options and can access the right support at the right time. Enterprise Northern Ireland will continue to work with our partners to this end. If we are serious about growing our SME-led economy, these insights cannot be ignored.”
Susan Nightingale, Director UK Network, British Business Bank, said:
“This report provides a timely analysis of the current financial landscape, and it is encouraging to see that over half of Northern Ireland’s smaller businesses are optimistic about their growth prospects in the next 12 months. The British Business Bank is fully committed to ensuring smaller businesses across Northern Ireland have equal access to capital. This research is an important part of informing the development of programmes and engagement strategies to ensure every business owner is aware of the finance options available to them.”