Small and Medium Enterprises
Dail Éireann — 2026-06-16
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Alan Dillon (FG), Mayo

I thank the Deputy very much for the question. The SME test encourages policymakers across Government to apply the principle of thinking small first, to consider the impact any measures may have on SMEs and to mitigate any impacts where possible. This approach helps small businesses by ensuring new policies are designed in a way that supports SMEs and reduces unnecessary burdens on them.
In May 2024, the Government committed to ensuring an enhanced SME test would be applied to all major new measures. In October 2024 the Government formally approved the enhanced SME test and guidelines. Under the current programme for Government we have committed to rigorously implementing the SME test to scrutinise every piece of legislation and regulation for its impact on SMEs. In addition, the Action Plan on Competitiveness and Productivity commits that all Departments will apply the SME test to all measures and in particular to policy initiatives where it is proposed to increase costs on small business and include the SME test in the Government handbook.
As for impact, we are seeing a growing and more consistent use of the SME test. In 2025, 33 SME tests were applied by ten Departments. This compares with 26 SME tests applied by eight Departments in 2024. The year-on-year growth of almost 27% in the number of tests applied in 2025 is a good indication the enhancements, implementation groups and Government commitments are having an impact. The SME test is influencing outcomes and helping small businesses in a practical way. For example, in the development of additional powers for the Agri-Food Regulator, engagement identified a potential burden on smaller firms, thereby resulting in small businesses with up to 50 full-time equivalent staff being excluded from the scope of the legislation. In our Department, its application to the employment permits Bill identified options to mitigate impacts on SMEs.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2026-06-16/debate/main
Retrieved: 2026-08-27T06:54:50+00:00
Sitting date: 2026-06-16