A dedicated Small Business Unit has been established within the Department of Enterprise, Trade and Employment.

Minister for Enterprise, Tourism and Employment Peter Burke said the unit would focus on implementing the SME Test, to ensure that the perspectives of small businesses are considered across government before new legislation or regulation is introduced.

"The unit will oversee the simplification of information and access to grants and supports for businesses though the National Enterprise Hub. It will also ensure the Local Enterprise Offices are properly resourced to help small businesses," he added.

Small and medium enterprises (SMEs) employing fewer than 250 people account for 99.8% of all enterprises and 69.2% of employment, according to the CSO.

Two-fifths (41.5%) of total turnover and 34.8% of gross value added (GVA) was attributed to these SMEs.

“Small businesses employ two thirds of our population and keep our local communities and economies vibrant and strong," said Burke.

"Government must recognise this, and ensure we are providing the support that SMEs need to run their businesses successfully and continue to provide vital employment and economic benefit across the country."

The move was flagged in the Programme for Government and follows the government's decision last month to expedite the development of the Action Plan for Competitiveness and Productivity, and to adopt a series of short-term measures to address the competitiveness challenges.

In January, the Small Firms Association (SFA) welcomed the planned establishment of the Small Business Unit. The group recently found that 83% of small businesses have experienced an an average increase in costs of 16.6% in the past 12 months.

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