The Small Firms Association has said that while the economic outlook is positive, the spread of growth is uneven.
In its winter economic statement, it says the exposed sectors of the economy are coming under severe pressure as factory gate prices fall, while the strengthening euro may undermine exports.
The SFA says higher costs for gas, electricity, petrol and local authority charges are still causing serious concerns for the business community.
Director Pat Delaney says December's budget should maintain a balance between increases in current spending and the need to regain lost competitiveness.
He says spending more money on public services is not a panacea. 'Delivery of extra services without regard to cost, efficiency or effectiveness is not a winning formula,' he says.
On economic growth, the SFA says private sector services look set to grow, but manufacturing may slow and consumer spending growth is only modest.
