Crime is costing small Irish businesses as much as €2 billion a year - equal to €14,361 per company - the Irish Small and Medium Enterprises association (Isme) said yesterday.

A survey of 300 businesses found that 55 per cent of those questioned had been affected by crime in the past 12 months. The retail sector suffered most, with 77 per cent of companies experiencing some form of crime in the past year.

"The level of crime against small business continues unabated and unless remedial action is taken at an official level, business owners will continue to be the soft targets for criminal activity, resulting in significant costs," Isme said in a statement accompanying the survey.

While direct costs are significant, Isme said there were many other costs associated with crime that could be a huge handicap to small businesses. According to the survey, 35 per cent of respondents had to alter the layout of their building as a result of crime, while 22 per cent had experienced a disruption to trade. For 17 per cent of respondents, insurance costs had risen as a result of a criminal incident.

"The consequences of crime impacts far beyond the direct financial aspect," Isme said. "There is a significant disruption to business activity with delayed orders, loss of customers, poor staff moral leading to absenteeism, damage to company reputation and increased management time devoted to dealing with the aftermath of crime."

Isme called on the Government to set up a national crime forum with a specific mandate to investigate the extent and impact of crime against business.

It also proposed a reassessment of the system for punishing crimes against businesses, saying the courts do not take the issue seriously enough.

Increased Garda presence on the streets and more CCTV would also help businesses in the fight against crime, it said.