The Small Firms Association says employment prospects for 2004 are in free fall after the worst year since 1984 for redundancies.
It quotes figures from the Department of Enterprise, Trade & Employment showing redundancies so far this year of just under 25,000.
SFA director Pat Delaney says small companies are continuing to take cost-cutting measures in an effort to survive the economic downturn.
He adds that a spiralling cost base - in areas such as wages, insurance, energy, commercial rates and service charges - has put increased pressure on firms.
'We expect to see further erosion of jobs in 2004 as investment and business confidence remain weak. The expected upturn in the international economy may take some time to benefit the small business sector,' said Mr Delaney.
