Minister for Enterprise, Trade and Employment Micheál Martin is expected to announce the establishment today of a new council aimed at improving management capabilities in the small and medium-sized business sector.

The Management Development Council will be chaired by Prof Frank Roche of University College Dublin.

Informed sources said the aim of the council would be to ensure that management capabilities in small and medium-sized businesses were raised to the best international standards.

The establishment of such a council was one of the key recommendations in the report of the Small Business Forum, which was established by Mr Martin in July 2005.

This sought to consider the current environment for conducting small business in Ireland and to advise on the adequacy and appropriateness of public policy responses in this area.

The forum's report said research carried out in Ireland had shown that the level of general management skills in small businesses was relatively poor, particularly in functional areas such as human resources, marketing and finance, as well as in forward planning and strategic management.

"Despite these deficiencies,small firms engage in management training and development only to a very limited extent, both for reasons of time and cost and because the available management training programmes are not perceived to be relevant," the report said.

"Given that economic progress in Ireland in the years ahead will depend heavily on the performance of the small business sector, it is critical that the management of these businesses be equipped with the knowledge and skills they need to make the businesses perform optimally."

It recommended that a management development council be established "to ensure that the supply of management programmes meets the needs and styles of owners/managers, through continuous monitoring and evaluation of the available programmes".