Small Firms Association encouraged by commitments in Programme for Government

Tuesday, 21st January 2025 - The Small Firms Association (SFA), the representative body for businesses employing up to fifty people, has welcomed the commitment to establish a ‘Small Business Unit’ in the Department of Enterprise as well as a new ‘Cost of Business Advisory Forum’ in the Programme for Government which was published last week.

The SFA is also encouraged that the Government plans to bring forward measures to support SMEs which entail changes to VAT, PRSI and other measures. In particular, the SFA had sought relief on PRSI for the most impacted businesses in its election manifesto.

Reacting to the publication of the Programme for Government, David Broderick, SFA Director said:

“Our election manifesto called for a roadmap for developing the small business community and the Government’s commitment to Publish Enterprise 2035, a long-term ambition for enterprise growth and job creation over the coming decade, is a welcome step.

“The commitment to establish a Small Business Unit in the Department of Enterprise chimes with the SFA’s call to put the interests of the small businesses at the heart of Government. The proposed establishment of a Cost of Business Advisory Group and promised measures to changes to PRSI and VAT is another positive development. The SFA looks forward to engaging with the new Government in the months and years ahead to secure the viability of the small business community.

“Ireland is a nation of small businesses that represent the beating heart of communities across the country. This is why the SFA has been calling for the Government to develop a roadmap for small businesses that will foster economic growth for years and decades to come.”

Rising business costs is the main concern for small businesses across the country. In mid-2024 the SFA, in partnership with Amárach, published an extensive survey on business costs. Almost 500 businesses nationwide were interviewed which found that eighty-three percent of small businesses have experienced rising costs in the past 12 months. The research also showed an estimated increase of 16.6 percent in average business costs during that time. 57 percent of businesses say that labour costs have contributed to rising costs. SFA’s ‘cost of business’ survey also showed that 45 percent of small businesses say insurance costs have contributed to overall rising costs while 37 percent cited an increase in raw material costs.

In the run-up to the recent General Election, the SFA published its manifesto which called for the introduction of a PRSI rebate for the most exposed businesses. It would be based on a rebate for each worker below an agreed earnings threshold. The SFA also wanted change around the tax system to support small businesses such as a cut in Capital Gains Tax and a reduction to the rate of income tax on dividends per annum per person on Angel Investor Relief.

ENDS

Notes to editor:

• SFA Director David Broderick is available for interviews and additional comment.
• For media queries please contact Jonathan McDade at 087 625 3551 and jonathan.mcdade@sfa.ie
• Please find SFA General Election Manifesto Campaign here
• Link to SFA's ‘Cost of Business’ report from May 2024 is available here
• The Small Firms Association proudly represents a diverse membership of businesses with less than 50 employees: homegrown and spanning every sector of the economy with members found in every town and every city in Ireland.