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Improving access by innovative SMEs to alternative forms of finance

 

Proposals should take account of a) the diverse levels of development of the provision of information on access by innovative SMEs to alternative sources of finance across the Member States and Associated Countries; b) target countries where the potential for improvement is highest; c) harness the potential of innovative financial technology; d) take account of best practices with a view to their eventual replication. They should:

  1. Develop a capacity-building strategy and consequent implementation plan that makes use of techniques (tailored for both women and men) such as awareness raising campaigns, coaching, mentoring, workshops, courses, training materials (in particular through social media) as well as knowledge transfer of best practices.

  2. Validate the implementation plan by stakeholders including innovative SMEs, alternative finance providers and public authorities.

  3. Execute the implementation plan.

  4. Review the impact of

    Sources of finance for innovative SMEs should be as diverse as possible in order to cater for their varying needs at different stages of the firm life-cycle and the innovation process. However, more needs to be done to improve such SMEs' access to alternative forms of finance[[Action Plan on Building a Capital Markets Union - COM(2015) 468 final, Brussels, 30.9.2015.]] such as peer-to-peer lending, venture debt and convertible loans, equity finance provided by crowdfunding or business angels, and factoring and trade finance. In particular, there is a need to:

    1. Sensitise and improve capacity of financial suppliers such as National Promotional Institutions [[http://www.eif.org/what_we_do/equity/NPI/index.htm]], Banks and enablers, such as National Central Banks, national innovation agencies providing finance about the potential of alternative finance.

    2. Facilitate the exchange of best practices amongst

      1. Increased use of alternative forms of finance by innovative SMEs.

      2. Emergence and growth of alternative finance options available to innovative SMEs in Member States and Associated Countries where such options are less available or developed at present.

      3. More cooperation between different suppliers of finance in order to crowd in existing EU, national and regional financing structures targeting innovative SMEs.

      4. Replication in Member States and Associated Countries of successful approaches to encouraging the take-up of alternative finance by innovative SMEs.