Many Irish small business are more positive about the future than previously, but cutting costs remains one of their priorities this year.
In its latest survey, the Small Firms Association has found that labour costs continue to be one of the most significant problems facing its members in 2012, along with improving productivity and performance levels.
Director of the SFA Patricia Callan said that government policy was hindering employment in certain sectors.
"Many businesses recognise the need to improve productivity and performance levels of their workforce currently rather than looking to expand," she said.