The scheme is one of several planned measures to bolster the small business sector in Ireland.

It is understood the minister will also announce 'knowledge acquisition grants' of up to 20,000, as well as financial support for information and communications technology (ICT) audits.

The proposed initiatives will be announced on Tuesday at the publication of the report of the Small Business Forum. Chaired by Microsoft Ireland managing director Joe Macri, the forum was set up by the minister in July last year to examine the environment for Irish small businesses and recommend measures to improve the sector's performance.

Nearly 800,000 people, or 54%, of the Irish private sector workforce, is now employed in businesses with fewer0 than 50 employees, according to figures cited by Macri in a speech last week at a Chambers Ireland event in Croke Park.

Access to finance was identified by the forum's report as a major difficulty for the small business sector, and the injection of new liquidity into the venture capital sector through Enterprise Ireland is designed to help alleviate that problem.

Enterprise Ireland's seed and venture capital programme has committed 98m to 15 VC funds since 2000.

It is understood that driving ICT in small businesses is identified in the forum's report as crucial to improving productivity and propelling small businesses up the value chain.

The minister will announce a new 2m government scheme that will enable small businesses to avail of ICT 'audits' over two years.

Microsoft's Joe Macri, who in a previous role headed up the software firm's small business division in the UK, said at last week's Chambers Ireland event that lack of awareness of technology was the main obstacle to small business productivity.

Access to research is also identified as key to improving the performance of small businesses. It is understood the minister will announced plans to introduce knowledge acquisition grants for small companies that lack the capacity to carry out their own inhouse research.

The grants are intended to enable small businesses to access research by collaborating with higher education institutions and research bodies. Companies will be required to co-fund research projects.

The moves are part of a flurry of activity by Ireland plc to bring focus to the small and medium enterprise sector in Ireland, with hope of unlocking the potential of smaller firms to drive further economic growth. A report highlighting a management skills shortfall was released on Friday.

And junior minister at enterprise trade and employment, Michael Ahern, last week confirmed that the audit exemption threshold - under which companies are not required to hire an external auditor - would be raised to the maximum EU level of 7.3m.

Business groups last week said they will be keen to see how quickly, and consistently, the report's recommendations will be implemented by government.