SME's

Using large scale EIB Investment Survey evidence for 2016 covering 8,900 non-financial firms from all size and age classes across all sectors and all EU Member States, we identify different innovation profiles based on a firm’s R&D investment and/or innovation activities. We find that “basic” firms – i.e. firms that do not engage in any type of R&D or innovation – are more common among young SMEs, while innovators –i.e. firms that do R&D and introduce new products, processes or services- are more often old and large firms. This hold particularly for “leading innovators”, ie those introducing innovations new to the market. To further explore why young SMEs are not more active in innovation, we explore their access to finance. We confirm that young small leading innovators are the most likely to be credit constrained. Grants seem to at least partly addressing the external financing access problem for leading innovators, but not for young SMEs.

Cloud computing, which relies on automatically available services, including storage, that can be shared among devices, is considered crucial to the digital transformation of industry and the economy. But fundamental questions remain on the role of cloud computing in Europe and the best strategies for fostering the conditions necessary for a barrier-free transatlantic digital economy. Is cloud computing being used to its optimum advantage across Europe, and how does that usage differ from country to country? What are the motivations behind cloud adoption—or behind the failure to adopt? And finally, what effect does the adoption of new forms of digital technology have on small and medium enterprises (SMEs)? Into the Clouds: European SMEs and the Digital Age, authored by Tyson Barker, addresses these and other questions.

The objective of this report is to highlight new alternative sources of capital and examine their potential for broader industry disruption in the future. Not all of the trends highlighted in this report will find broad adoption. But collectively, they hold lessons that could point towards the shape of the whole industry to come. To achieve this objective, this report describes the principal new capital sources that have arisen over the past decade, examines their drivers, and explains their effects and importance for society.

ASEAN is now at the final phase of the implementation of the ASEAN Economic Community (AEC) Blueprint. Under the third pillar “Equitable Economic Development”, the development of small and medium enterprises (SMEs) is highlighted where the progress of SMEs is key towards narrowing the development gap.

The establishment of the AEC, expected by the end of 2015, involves initiatives for regional economic integration. Work to deepen both internal and external integration will continue to evolve beyond 2015. It is anticipated that the enhanced movement of goods, services, investment, capital and skilled labour will attract investment and enhance economic activities in ASEAN. While this will open up new opportunities, at the same time, such benefits of integration must also be fully recognized by SMEs in the ASEAN region.

Small and medium sized enterprises (SMEs) are often cited as the major driver of economies and a force in job creation, but they still have difficulty securing proper financing to prosper.
The global financial crisis of 2007-2008, coupled with higher regulation and capital costs for loans to SMEs, has made it even more difficult for SMEs to secure financing. However, the financial crisis has also created a plethora of disruptors in the FinTech area (“FinTech”, a contraction of “finance” and “technology”, is defined as the use of technology and innovative business models in financial services) who, with their innovative ways to originate, assess credit risk and fund SME loans, have provided alternative ways for SMEs to secure funding for their growth.
Over the last year, the Global Agenda Council on the Future of Financing & Capital, formed of industry leaders, academics, finance ministers and central bankers, has tackled the question of the lack of financing for SMEs, although ample cash is ready to be deployed.
This report synthesizes the authors’ efforts to take stock of what the finance industry has provided to date and how the FinTech industry has taken over some of the funding with its innovative business models and products.