Job losses fuelled by the tourism and insurance sectors are expected and the outlook is a pessimistic one, according to the Small Firms Association.
The group say that a failure to recover from the foot-and-mouth crisis and September 11th has led to a third year of falling visitors.
SFA director Pat Delaney insists that a delay in the reform of the insurance industry is also continuing to put companies out of business.
He says that there needs to be more competition in the market but that it is important to have legislative change in Ireland and to change the cost of insurance.