The economic recovery is spreading to smaller business across Ireland according to the latest InterTradeIreland quarterly business monitor.

It found 45 per cent of firms in the Republic and Northern Ireland reporting growth. It was the most positive most positive set of results since 2008 and showed firms of all sizes and across all sectors are experiencing recovery.

Almost nine out of 10 businesses are either stable (43 per cent) or growing (45 per cent). This is the highest percentage of firms reporting growth since the recession began and is almost double the number in growth mode compared with this time last year (26 per cent).

"Up until now the recovery has been driven by exporters and larger firms but, significantly, we are beginning to see an upturn in domestic demand, which is now benefiting businesses that rely on the local market," said Aidan Gough, strategy and policy director at InterTradeIreland.

Meanwhile, more than half of Irish companies that responded to a EY study cited raising fresh capital as their key management issue.

EY’s capital confidence barometer, which surveys business leaders in 60 countries, found 53 per cent of Irish respondents are focused on capital raising. Half of these said equity would be their main source of funding. It found Irish companies were seeking growth EY described as “low growth and close to core”.