SMALL businesses need more help to grow and create jobs, according to a review of the Small Business Act carried out by the European Commission.

The European legislation is the EU’s policy framework for strengthening small firms, which represent 99% of all businesses and employ more than 90 million people in Europe.

But the different approaches by different countries to promoting entrepreneurship across Europe has led to different degrees of success, according to the Commission.

It says member states must step up their efforts to promote and support small businesses and to help them thrive in the current economic climate.

European Commission Vice-President Antonio Tajani, commissioner for Industry and Entrepreneurship, said: “They are the engine behind our economy and must be kept strong, competitive and innovative. Member states must act quickly to ensure that the Small Business Act is fully implemented.”

As priorities, members nations are being urged to improve access to finance to allow small firms to grow and improve regulations so firms can concentrate on their core business, two of the issues which were addressed by Chancellor George Osborne last week in his Budget.

Governments were told they must also help small firms make full use of the Single Market, through a variety of measures including help to recover debt across EU borders and offering guidance to SMEs making use of labelling of origin rules.

Finally, there should be more help for small businesses to deal with the challenges posed by globalisation.