The City's role in providing for the public equity financing needs of UK SMEs

The City of London recognises the important contribution made by small and medium sized enterprises (SMEs) to the UK economy and the critical role played by UK financial services in providing equity finance to facilitate their growth. As a result the City of London has commissioned research to assess the role and contribution made by UK financial services in terms of supporting the provision of and access to equity finance for UK SMEs. This commission is timely given the Government’s concerns over gaps in the SME funding escalator and the recent economic downturn, which has led to a withdrawal of venture capital funds and a loss of investor confidence

Financial Innovations for SMEs in Sri Lanka

In Sri Lanka, SMEs play a significant role and are more constrained by different obstacles, and limited access to finance is a significant problem. The purpose of this paper was to investigate financial innovations to develop SMEs in Sri Lanka. The study was based on primary and secondary sources. Primary data were from SMEs' owners or managers gathered by using survey methods. The sample comprised 63 SMEs in Sri Lanka operating different kind of industries. The finding reveals that commercial banks' loans are the most critical source of SME financing, even though the SME has many difficulties in dealing with banks. Leasing financing and loans from other financial institutions are less important than other financial sources. Equity financing, venture capital, and factoring are uncommon among SMEs in Sri Lanka. Indeed, there was evidence that SMEs in Sri Lanka still preferred to use traditional financing sources instead of innovative financial sources. Furthermore, SMEs do not have sufficient knowledge about innovative financial authorities, and financial institutions fail to provide adequate support for SMEs. Promoting programs to develop managerial and IT skills for SMEs, establishing particular banks for SMEs related to the small community, and other financial such as factoring and venture capital can be developed to reduce SMEs' financing problem in Sri Lanka. Keywords: Access to Finance, Financial Innovations, SMEs DOI: 10.7176/JESD/11-20-08 Publication date:October 31st 2020

Supporting Access to Finance by SMEs: Mapping the initiatives in five EU countries. ECMI Research Report No. 9, April 2014

This paper maps the initiatives to support access to finance for small- and medium-sized enterprises (SMEs) that were available at national level in 2012 in the five biggest European economies (Germany, France, the UK, Italy and Spain). This mapping distinguishes initiatives promoted and financed primarily through public resources from those developed independently by the market. A second breakdown is proposed for those sources of finance with different targets, i.e. whether the target is debt financing (typically bank loans at favourable conditions, public guarantees on loans, etc.) or equity financing (typically venture capital funds, tax incentives on equity investments, etc.). A broad set of initiatives has been implemented to close the funding gap of SMEs in these five countries. The total amount of public spending for SMEs, however, has remained well below 1% of GDP. Public subsidisation of bank loans has been by far the most diffused type of intervention. Despite the fact that this strategy might prove to be effective in the short term, it fails to address long-term sustainability issues via a more diversified set of financing tools

Sustainable innovation: key conclusions from Sustainable Innovation Conferences 2003–2006 organised by The Centre for Sustainable Design

The following is taken directly from the introduction. This booklet summarises the key conclusions from the 2003–2006 conferences on Sustainable Innovation organised by The Centre for Sustainable Design (www.cfsd.org.uk). The conclusions are drawn from the respective conference presentations, papers and discussions. The publication has been sponsored as part of a ‘Centre of Excellence in Sustainable Innovation & Design’ project awarded to The Centre for Sustainable Design by the South-East England Development Agency (SEEDA)

Environmental management systems and sustainability in SMEs

Environmental sustainability in manufacturing sector has been allocated a major consideration in the international literature. Due to growing concerns over the high effect of SMEs on world manufacturing industries and their contribution to pollution; this research attempts to focus on the key parameters that interact in the application of environmental management system, taking into account the main features of SMEs and also the integral role of industrial entrepreneurs in inspiring their firms’ approaches. The paper explores the potential opportunities which enable these enterprises to move towards organizations with high level of responsibility regarding environmental protection in order to provide a healthier life for future generations. Case investigation is carried out on an adhesive manufacturing company, which covers a notable market share within the sector. The research identifies that the company requires developing both internal and external entities within an explicit plan to revolutionize the recruitment patterns. Given the lack of adequate studies in adhesive technology, more researches are recommended in the future to consider the sustainable innovations on a broader sample of adhesive manufacturing companies to perform the life-cycle analysis due to the harmful organic compounds and toxic vapours of the adhesive products

Increasing Innovation-driven Entrepreneurship in Scotland through Collective Impact

In Scotland we have an opportunity to redefine ourselves as a nation of dynamic and high achieving entrepreneurs, targeting global market opportunities, using innovation as a key driver of sales growth, making a significant contribution to the creation of employment and wealt

ADB–OECD Study on Enhancing Financial Accessibility for SMEs: Lessons from Recent Crises

During the era of global financial uncertainty, stable access to appropriate funding sources has been much harder for small and medium-sized enterprises (SMEs). The global financial crisis impacted SMEs and entrepreneurs disproportionately, exacerbating their traditional financing constraints. The financial conditions of many SMEs were weakened by the drop in demand for goods and services and the credit tightening. The sovereign debt crisis that hit several European countries contributed to further deterioration in bank lending activities, which negatively affected private sector development. The global regulatory response to financial crises, such as the Basel Capital Accord, while designed to reduce systemic risks may also constrain bank lending to SMEs. In particular, Basel III requires banks to have tighter risk management as well as greater capital and liquidity. Resulting asset preference and deleveraging of banks, particularly European banks with significant presence in Asia, could limit the availability of funding for SMEs in Asia and the Pacific. Lessons from the recent financial crises have motivated many countries to consider SME access to finance beyond conventional bank credit and to diversify their national financial system. Improving SME access to finance is a policy priority at the country and global level. Poor access to finance is a critical inhibiting factor to the survival and growth potential of SMEs. Financial inclusion is thus key to the development of the SME sector, which is a driver of job creation and social cohesion and takes a pivotal role in scaling up national economies. The Asian Development Bank (ADB) and the Organisation for Economic Co-operation and Development (OECD) have recognized that it is crucial to develop a comprehensive range of policy options on SME finance, including innovative financing models. With this in mind, sharing Asian and OECD experiences on SME financing would result in insightful discussions on improving SME access to finance at a time of global financial uncertainty. Based on intensive discussions in two workshops organized by ADB in Manila on 6–7 March 2013 and by OECD in Paris on 21 October 2013, the two organizations together compiled this study report on enhancing financial accessibility for SMEs, especially focusing on lessons from the past and recent crises in Asia and OECD countries. The report takes a comparative look at ADB and OECD experiences, and aims to identify promising policy solutions for creating an SME base that is resilient to crisis, from a viewpoint of access to finance, and which can help drive growth and development

From funding gaps to thin markets.UK Government support for early-stage venture capital

This report analyses the impact of investment from UK government-backed venture capital schemes on funded firms over the period 1995-200

A manifesto for the creative economy

The UK\u27s creative economy is one of its great national strengths, historically deeply rooted and accounting for around one-tenth of the whole economy. It provides jobs for 2.5 million people – more than in financial services, advanced manufacturing or construction – and in recent years, this creative workforce has grown four times faster than the workforce as a whole. But behind this success lies much disruption and business uncertainty, associated with digital technologies. Previously profitable business models have been swept away, young companies from outside the UK have dominated new internet markets, and some UK creative businesses have struggled to compete. UK policymakers too have failed to keep pace with developments in North America and parts of Asia. But it is not too late to refresh tired policies. This manifesto sets out our 10-point plan to bolster one of the UK\u27s fastest growing sectors