ECONOMIC RESEARCH

Restoring Financing and Growth to Europe's SMEs

October 10, 2013

SMEs in Europe have been hard hit by Europe’s economic difficulties and have seen major declines in financing since 2008. To promote better understanding of the factors behind reduced financing, the IIF and Bain & Company held more than 140 interviews with a broad range of stakeholders in six Euro Area countries and with officials in key European institutions. The interviews made clear that progress is needed both to improve the availability of information and the financial health of SMEs and to broaden the base of financial institutions able to identify and fund promising SME activities. The report recommends the establishment of a coordinated European process focused on national task forces to develop tailored, technical, nonpolitical action plans to address each of these impediments in each national market.