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New Approaches to SME and Entrepreneurship Financing

Broadening the Range of Instruments

image of New Approaches to SME and Entrepreneurship Financing

Bank lending is the most common source of external finance for many SMEs and entrepreneurs, yet has proven challenging to newer, innovative and fast growing companies, as well as to those undertaking important transitions in their activities or seeking to de-leverage and improve their capital structures.

This report maps a broad range of external financing techniques to address diverse needs in varying circumstances, including asset-based finance, alternative debt, hybrid instruments, and equity instruments. It further highlights key enabling factors for their development, discusses major market trends and obstacles to SME uptake, and suggests some key areas of policy action to overcome challenges to market development.

English

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Crowdfunding for SMEs

This chapter illustrates the emergence of crowdfunding as a means to finance businesses and discusses its potential for financing SME investments. The chapter comments on the origin of crowdfunding and describes its different forms. It illustrates the profile of investments and business models that are suited for crowdfunding, it discusses the key factors that enable the development of crowdfunding activities, it describes recent trends in the crowdfunding industry, and it presents recent regulatory reforms and policies that are intended to ease the development of this financing channel, for both debt and equity funding.

English

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