Exporters have called on Minister for Finance Brian Cowen to provide more funding in tomorrow's budget to drive the production sector.
The Irish Exporters' Association (IEA) said there was "mounting evidence" of increasing difficulty for small and medium-sized exporters to raise the equity finance they require to enable them to grow to the critical size needed to successfully expand into international markets.
"The future of the production sector of the economy depends on a vibrant flow of new companies entering new export markets with new products," the IEA said.
It asked Mr Cowen to update the Business Expansion Scheme (BES) and the Seed Capital Scheme to levels that would "stimulate fresh investment interest" in companies that wish to expand into international markets.
IEA chief executive John Whelan said: "The BES scheme has not been indexed to inflation, from its inception in 1984. Hence, we are now calling on the Minister to increase the investment ceiling from its current level of €31,750, which, using indexation, will take it to €100,000, or €300,000 over a three-year period."
"Also, there is strong evidence that a major gap has arisen between the point at which venture capital companies enter the market, to manage equity investment schemes, and the current BES thresholds for these companies. This has resulted in a turn away from facilitating companies looking for BES funding, because of the current low level."
Mr Whelan said the Minister should increase the threshold for company fundraising under the BES scheme from €1 million to €5 million.