Some 1,314 jobs have been saved since the introduction of the Small Company Administrative Rescue Process (SCARP) at the end of 2021.

A total of 100 SCARPs, a simplified out-of-court debt restructuring process for small businesses deemed to be viable, have been completed since the scheme launched three-and-a-half years ago.

The latest SCARP Index from Azets Ireland shows 73 per cent of those SCARPs have been successful and that more than half of businesses (53 per cent) availing of the scheme have been based in Dublin.

This year to date, 15 SCARPs have commenced, an increase of 15% on the same period last year, and 240 jobs have been saved as a result of successful SCARPs over the past six months.

A fifth (20 per cent) of businesses going through SCARP in the first half were in the hospitality sector, the highest share among all industries ahead of construction (13 per cent) and alcohol producers (13 per cent), indicating turbulence created by White House trade tariffs has effected boutique spirits exports.

“In a period of heightened economic uncertainty, Ireland’s SMEs are navigating challenging trading conditions, from rising costs to elevated energy costs and supply chain issues. In sectors which are heavily export dependent, the unknown position on tariffs and how that might recalibrate the trading relationship has caused considerable uncertainty and a slowdown in key decision making," said Dessie Morrow, partner in advisory and restructuring at Azets Ireland.

"This can have a major impact on firms from production slowdowns to pauses in capital expenditure and is particularly challenging for firms already struggling with the high cost of doing business."

Citing low take-up, Azets has called for increased flexibility for micro, small and owner-managed businesses around the significant administrative and compliance burdens of the scheme.

“The simplification of access to the process, via form-filling for companies with straightforward affairs and turnover below a prescribed level would help to ease administrative burdens of the scheme on time pressed owner managed businesses, many of whom face significant pressure engaging with the scheme while managing everyday operations and trade," Morrow continued.

"Consideration should also be given to removing the state creditor opt-out from the scheme. Notwithstanding the Revenue’s positive engagement with the scheme, the ability to opt-out, is a deterrent to some business owners considering the process.

"By reducing the burden on businesses and enhancing the flexibility of SCARP, we can support the future viability of more small businesses that may need to restructure in the months ahead."

(Pic: Getty Images)