Employers group Ibec has cautioned that an assertive national effort is needed to avoid the very real risk of the UK crashing out of the EU without a new trade deal or transitional arrangements.
In a statement as Article 50 was triggered today, Ibec's Danny McCoy said that the "combative and hardline UK position has significantly increased the chances of a divisive and damaging split".
Mr McCoy said that Irish efforts and influence must be marshalled to ensure this does not happen.
"A far-reaching free trade agreement with minimal trade barriers is desirable, but fair competition must underpin this new EU-UK relationship. Comprehensive transitional arrangements will be needed to avoid a Brexit tariff 'cliff edge'," he added.
The group said it is advising all its member companies to examine how Brexit might impact their business. It is providing contingency planning support for its member companies.
Ibec called for a "comprehensive" state aid package to guard against potential economic disruption and dislocation.
"State agencies will need extra resources so they can better support companies diversifying into new markets," it added.
Commenting after the triggering of Article 50, the British Irish Chamber of Commerce said while it was now imperative that all sides work together in the coming months and years to ensure that a deal is struck that does least harm to the economies of both the UK and Ireland.
The Director General of the British Irish Chamber of Commerce, John McGrane said that he welcomed Theresa May's acknowledgement of the importance of maintaining the Common Travel Area between Ireland and the UK.
"This is something that the British Irish Chamber of Commerce has been advocating strongly for and we are hopeful that the EU will respect the integrity of this unique and bilateral arrangement," Mr McGrane said.
Mr McGrane said the Chamber want to see both sides negotiate a comprehensive trade deal that will include critical sectors such as agri-food.
"It must be made known to those around the table that a bad deal for the UK will be a bad deal for Ireland and should be avoided at all costs," he added.
Meanwhile, the Small Firms Association has published a toolkit for small businesses to help them to practically prepare for Brexit.
SFA Chair Sue O'Neill said "whilst many factors are outside our control, it is important for each small business to assign senior management responsibility to assessing the impact on their own business, and developing contingency plans for likely impacts.
"Companies should pay particular focus to assessing the potential impacts of currency movements, along with supply chain, commercial contracts, finance and funding and workforce considerations."
