SME Financing in the EU: Moving beyond one-size-fits-all

Markus Demary, Joanna Hornik and Gibran Watfe
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Markus Demary: Cologne Institute for Economic Research
Joanna Hornik: College of Europe, Department of European Economic Studies

No 40, Bruges European Economic Policy Briefings from European Economic Studies Department, College of Europe

Abstract: The proposal for a European Capital Markets Union (CMU) carries large potential economic benefits from enhancing the financing possibilities for Small and Medium-Sized Enterprises (SMEs). By deepening the capital markets and strengthening crossborder integration, the European Commission hopes to stimulate economic growth and boost employment. In this paper, we discuss to what extent these goals can be achieved, in light of the complex business environment of European SMEs. We outline the different types of SMEs in terms of their financing structures as well as the pervasive differences across the EU, concluding that any policy approach must take into account the diversity of the companies’ financing needs and the market realities in the Member States. We argue that the CMU is likely to have a heterogeneous impact, with some types of SMEs and certain regions gaining more than others.

Keywords: Capital Markets Union; SME financing; European integration (search for similar items in EconPapers)
JEL-codes: E61 F21 G32 O16 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2016-03
New Economics Papers: this item is included in nep-eec, nep-ent, nep-mac and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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