The findings are part of a new survey of 220 entrepreneurs, primarily from the SME sector, conducted by Eurochambres, an association representing European chambers of commerce and industry.
Entrepreneurs identified general macroeconomic uncertainty, a steep decline in domestic demand and increased difficulties in accessing finance as the main obstacles to economic recovery.
European businesses are also concerned about growing delays in payments by clients. 43% of respondents said public sector payment times have increased, and the situation is even worse for businesses with private clients.
Eurochambres urged member states to seek guarantees of better access to credit from private banks that have benefited from injections of public funds.
"European businesses – particularly smaller ones – are sending us a clear message: the crisis is hitting them hard. They ask for concrete solutions to their concrete problems, today, not tomorrow. Inaction would lead to a paralysis of Europe's economy," said Eurochambres Secretary General Arnaldo Abruzzini.
The news comes as economy ministers from across Europe gather in Brussels for crunch talks on the economy, in the wake of an announcement by the European Investment Bank (EIB) that it has ratcheted up efforts to get credit flowing to SMEs.
The EIB announced yesterday (March 9) that it had boosted loans to small businesses by 42% in 2008.
Total EIB lending rose by 21% last year to €57 billion, and loan signatures increased sharply in the final quarter in response to the deteriorating economic situation.
The Bank insisted it was working to make the lending process simpler, more flexible and more transparent.
