Irish small businesses regard insurance and labour costs as their biggest problems, a Small Firms' Association (SFA) survey shows.

The association yesterday released the results of its second "dirty dozen" survey of business problems.

The study details the "12 most negative factors impacting on the ability of small business to invest, develop, expand and create new jobs".

Nineteen per cent of the 1,049 companies that responded to the survey ranked insurance as their main worry, while 83 per cent said insurance was a business problem.

Labour costs came second, with 12.2 per cent of respondents citing these expenses as a problem, while 68 per cent listed them as a major business problem.

Both issues were ranked one and two in the same survey last year.

Inflation was third on the 2003 survey, with just over one in 10 companies saying it was their main concern.

Increased legislation, particularly in the form of new rules and regulations from Europe, was cited by 7.6 per cent of companies.

Energy costs made it on to the list for the first time, with 7.1 per cent of companies singling them out as their biggest problem, and more than half citing them as one of their top 12 problems.