Supporting entrepreneurs, attracting investors and enhancing the productive capacity of regions is vital to improving their economic performances and helping those that are lagging behind to catch up. Around 1.2 million enterprises are created in the EU every year - some 10% of the total number of businesses. Yet only half of them survive the first five years. And thereare big differences across the EU - for example, in Italy, Spain and the United Kingdom, new enterprises are created twice as often compared to the EU average.SMEs are the real giants of the European economy, accounting for 99% of businesses and up to two-thirds of all private sector jobs in the European Union. However, SMEs often have difficulty in accessing capital and knowledge and frequently lack experience. EU cohesion policy is aimed at tackling these difficulties through a combination of 'hard' measures, such asdirect support to investment, and 'soft' ones, notably the provision of business support services, training, an innovative environment, financial engineering and technology transfer, as well as the support of networks and clusters.