Small businesses can help bring the European Union out of its economic malaise.

However, Brussels must take positive actions to help them fulfil their potential, states the UK’s Federation of Small Businesses (FSB). The long-awaited EU Small Business Act is designed to set a framework for how the European Union deals with small businesses, which make up 92% of all EU businesses. It is intended to embed the EU’s ‘think small first’ principle into future legislation to take account of the disproportionate burden that red tape often places on small enterprises.

The FSB has called for the Act to contain four ‘quick hit’ actions that would improve the environment for small businesses: Regulatory exemptions for micro enterprises (ones employing fewer than 10 staff); A small business element to impact assessments; EU common commencement dates (single days when new regulations come into effect to give a clearer overview of the volume of legislation and allow businesses to plan ahead); A consultation period of at least 12 weeks.

Tina Sommer, FSB EU and International affairs chairman, said: "Small businesses will make a vital contribution to bringing Europe out of its economic gloom, but the EU must release them from their administrative shackles and allow them to fulfil their potential. The Small Business Act provides a critical opportunity to give Europe’s entrepreneurs a better deal. The European Commission’s proposals are a good place to start, but national governments must significantly beef up this document for it to offer tangible benefits to all small businesses."