More than half of Taiwan’s small businesses reported growth in 2025 and sentiment for 2026 has improved to its strongest level since before the pandemic, according to a CPA Australia survey.
The finding was part of the accounting body’s Asia-Pacific Small Business Survey 2025–26.
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CPA Australia, which has an office in Taipei, collected responses from 4,166 small enterprises across 11 Asia-Pacific markets, including Singapore, Chinese Mainland and Australia for the survey. Taiwan’s results were based on feedback from 311 firms.
According to the survey, 53% of Taiwanese small businesses expanded in 2025.
Although this is slightly below the 57% recorded in the previous survey, expectations for the year ahead are more optimistic.
For 2026, 63% of respondents anticipate business growth.
Confidence in the domestic economy has also improved. Some 61% of respondents expect Taiwan’s economy to grow in 2026, the highest level recorded since the market was included in the survey in 2018.
The survey also found that small and medium-sized enterprises remain central to job creation.
In 2025, 31% of SMEs in Taiwan increased their headcount, and 44% plan to hire more staff in 2026.
CPA Australia Honorary Taiwan Advisor Elic Lam said: “Rising global demand for semiconductors and AI related chips continues to create opportunities for exporters and suppliers across Taiwan’s value chain.
“While geopolitical tensions and intensifying competition are adding uncertainty, government support measures for SMEs, including targeted subsidies and tax incentives, together with Taiwan’s resilient domestic demand, are helping to lift business confidence.”
Investment in artificial intelligence (AI) has become more prominent among small firms. The survey shows that 33% of businesses identified AI as the technology they invested in most in 2025, up from 29% a year earlier.
The report also points to a notable reduction in cyber incidents.
The proportion of small businesses reporting a loss of time or money due to cyber events dropped from 59% in 2024 to 27% in 2025, which the survey links to higher awareness and wider use of basic cyber security measures.
Only 40% of Taiwanese respondents said their technology investment in 2025 led to higher profitability, compared with a survey-wide average of 56%.
The survey also indicated that financing conditions improved markedly in 2025.
Two-thirds of businesses (66%) reported that obtaining external finance was easy, placing Taiwan among the top three markets surveyed and up sharply from 28% in 2024. Looking ahead to 2026, 63% expect access to finance to remain favourable.
