Microsoft has a "strong, necessary, symbiotic" relationship with small and medium-sized businesses (SMEs) in Europe, a spokesman has commented.

Jan Muehlfeit, chairman of the software firm within the continent, made his comments to eGov Monitor, noting that almost 120 million Europeans work for SMEs.

Furthermore, he asserted that all large corporations in the region rely on smaller businesses to a degree as they are the "engine" of the economy.

The European Commission must encourage SME growth and create enabling policies to avoid start-ups and entrepreneurs decamping to the US and "silicon valley", Mr Muehlfiet continued.

"Europe's leaders must now act, or we will continue to fall behind our global competitors," he urged.

Previously, Microsoft has urged small businesses to back up their data so that they do not lose vital client or financial records should their hard drives crash or a natural disaster occur.

It stated that data is a "vital business asset".