According to Benassi, unemployment and the threat of further job losses have reduced spending power across the EU and devastated the sense of job security that workers felt before the crisis.
Confidence in the business sector also hit an all-time low in 2009, he said, and the outlook for 2010 is gloomy unless EU member states step up their efforts to get credit flowing to small firms in the form of bank loans and prompt payments.
"Against this background, I believe that 2010 will be a 'make or break' year. It is too early to tell whether the crisis is really over or not – I am more inclined towards the latter option – but what is clear to me is that small businesses cannot be left on their own. Public support is much needed at this stage," he said.
Benassi is pointing the finger at enterprise ministers for their reluctance to implement elements of the Small Business Act (SBA), which was adopted more than 12 months ago.
On Wednesday (15 December), the European Commission will publish its assessment of progress in implementing the SBA and is expected to offer a mixed picture of efforts made at national level.
"I am disappointed by the lack of ownership of the SBA process by member states. Some have cherry-picked parts of the package, but very few have implemented a coherent and comprehensive strategy to put the Small Business Act into practice in their countries," he said.
Despite this, Benassi has highlighted a number of examples where governments have set good examples. He is also complimentary about the role played by the European Investment Bank in providing liquidity to SMEs at a time when banks were shying away from extending credit to young companies.
However, all is not rosy in Benassi's assessment. He says companies still struggle to be paid on time, and he wants all businesses to settle their bills within 60 days.
"I understand that some hesitate on such a move, which seems to be against the principle of contractual freedom. But let me be honest: freedom of contract is a myth in this kind of transaction, as SMEs often have no choice other than to accept the payment conditions of their more powerful counterparts," he said.
Benassi was speaking to Gary Finnegan.
