'The Irish government should encourage initiatives that will prevent further cost increases and in turn sustain employment in small firms' - Leaving Cert Economics - Question e - 2009

The government could implement policies that lower the costs of essential services such as electricity, gas, and water. This reduction in utility charges would directly decrease the overall production costs faced by small companies, allowing them to allocate resources toward growth and employment.

Introducing tax breaks or reducing indirect taxes, such as VAT on fuel or raw materials, could significantly help small businesses manage their expenses. Additionally, reducing corporate tax rates or personal income tax could alleviate the financial burden on both businesses and employees, encouraging spending and investment.

Streamlining administrative processes and eliminating excessive paperwork would reduce the operational costs for small firms. By making it easier to comply with regulations, businesses can focus more on productivity rather than administrative hurdles.

Offering subsidies can help lower the cost of labor by reducing the employer's contribution towards social welfare, such as PRSI. Additionally, subsidies for training programs can enhance worker skills, leading to improved productivity and competitiveness.

Investing in infrastructure improvements, such as broadband and transportation, is essential. Upgrading these services can alleviate the costs of doing business and improve efficiency, ultimately enabling small firms to operate more effectively and reach new markets.