The European Union (EU) is looking at ways to encourage small businesses to create more jobs in the wake of the economic crisis.

New figures from the institution indicate that small and medium-sized enterprises (SMEs) in the region were the most important engine in terms of employment between 2002 and 2008, creating 9.4 million positions.

However, this momentum has stalled since the global downturn and new policies are needed to restart it in order to provide more work for Europeans, the EU executive has suggested.

"SMEs represent our economy's future, only they can generate new employment opportunities," Antonio Tajani, vice-president of the European Commission, said.

"In light of the rather testing times ahead, an effective policy response is crucial."

The body has called on member states for "a speedy implementation" of measures incorporated in the Small Business Act.

In related news, a recent study conducted as part of a European Commission project discovered the number of people who would prefer to be self-employed in the region was lower than in places such as the US and China.

Posted by Alex Donnell