The Irish Small and Medium Enterprises Association (ISME) has called for a 10 per cent tax rate across the board for self-employed people over the first five years. This could be followed by a tapered introduction into the full tax net to stimulate new SME start-ups, it said.

In its pre-Budget submission, ISME also said specific incentives should be targeted at middle and senior management in high-tech firms to encourage and facilitate the creation of a vibrant indigenously-owned high-tech sector.

It said £20 million (€25.39 million) should be set aside from the National Training Fund to assist SMEs in effective training in e-commerce and to provide funding towards the adaptation of technology.