22nd October 2024
The Minister for Enterprise Trade and Employment, Peter Burke TD, today welcomed the government decision to agree the revised guidelines and template for the application of the SME Test. The enhanced test will be rigorously applied by all government departments to major new measures that will directly or indirectly impact small and medium sized enterprises.
Minister Burke TD said:
“The revised SME Test will help to ensure the ‘think small first’ principle is thoroughly applied to new measures as they are being developed. This will ensure that potential impacts on SMEs are fully considered, and mitigations are applied where appropriate.
"Under the new guidelines, all primary and secondary legislative proposals, new policies and strategies, and all SIs (Statutory Instruments) will need to carry out an SME Test or provide an explanation why one is not necessary. It’s part of a further emphasis being placed by government on supports for family businesses, indigenous enterprises and home-grown SMEs to reduce red tape and regulatory burden.”
The SME Test is an impact assessment tool that has been designed to assist policymakers consider the SME perspective when making any new policies, legislation (primary or secondary), or regulatory compliance requirements.
The objective of the SME Test is to ensure the ease of use, understanding and application of policy requirements on SMEs. The test identifies disproportionate impacts on SMEs and encourages policymakers to propose alternative policy options or mitigating measures to minimise the impact on small businesses, and to ensure that the regulatory environment allows SMEs to operate, grow and scale-up.
In addition to rigorously applying the new SME Test, government has also recently committed to consult with business to identify additional areas across departments/agencies where the regulatory burden could be reduced.
A cross-government network has developed the enhanced SME Test and will continue to work together on implementation. Strengthening the language used in the guidance and adding clarity as to when and where it should be applied, as well as including more detailed screening questions and emphasising the need for consultation will ensure the SME test becomes an even more useful tool for policy makers.
ENDS
Back to Department News