Enterprising action
An action statement to help small and medium-sized enterprises was launched at a conference on “Better Financing for Entrepreneurship and SME Growth” held in Brazil on 27-30 March 2006 (see previous edition, No. 254).
Stakeholders, business people and government representatives at the conference agreed that access to funding was one of the biggest obstacles to the creation, growth and development of small businesses. Policymakers need to make sure that SME specific needs are properly understood and should work to remove red tape, and reform regulations and taxes that hamper access to financing.
The action statement highlights two issues: debt and credit financing, particularly the need for competition among lending institutions, measures to promote better risk-sharing between lenders and SMEs, and government guarantee schemes; and risk capital, where there is a need to enhance awareness, and to educate and widely communicate the value of equity financing. But there is also a need to remove obstacles to venture capital and to promote “business angel networks”.
For more information see www.oecd.org/cfe/sme.
©OECD Observer No. 255, May 2006
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