In May 2024, government introduced a package of supports for SMEs which included a commitment to ensure an enhanced SME Test will be applied to all major new measures. Working with the cross-government network, Department of Enterprise, Trade and Employment officials have developed the new enhanced SME Test and Guidelines.
While regulations are an essential part of modern business life, for example, in areas such as public and workplace health and safety, food safety or environmental protection, it is important that small companies do not face any unnecessary or disproportionate regulatory obstacles to start up, establish and grow.
In developing policy initiatives or measures, it is important that policymakers employ the principle of 'Think Small First' and consider how the measure will impact businesses. This entails that full consideration is given to micro, small and medium enterprises, commonly referred to as SMEs at the early policy development stage. These enterprises can be disproportionately impacted by regulatory or administrative burdens if not given due consideration during the formulation of policy.
The new SME Test has been designed to invite consideration of less stringent compliance requirements for smaller companies, where appropriate and proportionate, including simplification of regulatory adherence through the use of templates, reduced regulatory thresholds for SMEs, and the use of exemptions where possible.
Enhancements to the SME Test include: Stronger language, reference to broader policy rather than just legislation, more detailed screening questions, increasing the prominence of the consultation step, recording positive and negative impacts on SMEs, requirement to publish completed SME Test.
Ireland’s SME Test is comprised of a four-step process for policy makers to consider.
- Consultation
- Identification
- Impact
- Mitigation
The Department of Enterprise, Trade and Employment will continue working with government departments to ensure application of the SME Test to legislation where there are potential impacts on SMEs.
Related link
Guidelines and template for application of the SME Test