Start-ups and SMEs find it harder to shop around for funding options because of barriers thrown up by the EU, the Association of European Chambers of Commerce, Eurochambres has warned.

The body is lumping pressure on the European Commission (EC) to remove the barriers and give businesses more opportunities to find appropriate finance.

Eurochambres said a lack of risk appetite coupled with patchy rules regulations impacting on lenders and borrowers was restricting the lending environment for small businesses.

Other problems highlight by the group included:

1. Slowness of decision making process for debt or equity financing

2. Barriers - largely regulatory - to acquiring financing from other member states

3. Tax regimes that discourage investment

Miquel Valls I Maseda, vice president of Eurochambres, said: “It is clear that many entrepreneurs face huge problems in trying to acquire the type of finance they need at the time when they need it most.

“This asymmetry must be addressed as a matter of urgency by the EU’s leaders for the new term.”

Recommendations for the EC included the creation of a genuine single market and to create more equity-friendly tax regimes to foster a more entrepreneurial and risk-taking culture.