INSTITUTIONAL FRAMEWORK AND SME ACCESS TO FINANCE PROF. DR. SOPHIE MANIGART VLERICK BUSINESS SCHOOL AND GHENT UNIVERSITY.

Slides:

Advertisements

Similar presentations

Western Balkan Technology Fund (WBTF) Initiative

Advertisements

Enterprise Directorate General European Commission Intellectual property and access to finance for high growth companies 14 September 2007 Patrick KLEIN.

Institutional Investors and Long Term Investment Juan Yermo Financial Affairs Division Directorate for Financial and Enterprise Affairs.

The European Investment Fund & Technology Transfer

1 Gunnar Münt The Risk Sharing Finance Facility New EIB financing opportunities 14 th December 2006, Brussels.

EVCA Quarterly Activity Indicator: Q Q August, 2011 Produced for EVCA by PEREP_Analytics TM.

SME Finance for Internationalisation Erich Kühnelt Wirtschaftskammer Österreich (WKÖ) Austrian Federal Economic Chamber.

Raising Capital Chapter 15.

BUSINESS WITH CONFIDENCE icaew.com Clive Lewis, Head of Enterprise SME Access to Finance Introduction.

1 Chapter 13 Saving, Investment, and the Financial System.

Whether and how an equity fund could unleash investments in chains in Ethiopia?

A comparative analysis of corporate finance systems.

European Investment Fund Forum Binary Venture Capital Bucharest September 26.

This project is funded by the European Union Integrated Innovation Support Programme Venture Capital – Challenges & Support Barriers and Solutions Robert.

Copying forbidden Terzo Valore, the Italian way to crowdfunding: high social value, low interest rate, no risk Social Entrepreneur Have your say! "Innovative.

Dr. Yannis Pierrakis Senior Lecturer in Entrepreneurship and Innovation Kingston University.

© Copyright YFM Group Limited 2006 Learning from Experience – Venture Capital Fund Models for Phil Cammerman YFM Group Development Director.

Copyright © 2007 South-Western. All rights reserved. Chapter 16 Financing.

Is a Financial Institution controlled by the Italian Ministry for Economic Development, participated by leading Italian Banks and Confindustria – the.

Understanding Stocks. What is a stock?  A share in the ownership of a company  When you own stock, you are automatically an “owner”/”shareholder” in.

EVCA Guidelines and Good Practice in the Management of Privately Held Companies in the Private Equity and Venture Capital Industry 28 June 2005 Second.

European Union SME policies Ulla Hudina EU Finance Day for SMEs, Athens, 20th January 2009.

Seminario Formativo materie Europee Regione Lombardia – Bruxelles 24 Giugno 2015.

 Why is it important for you to start saving now? SLID E 1.

SMEs Global scenario and opportunities Maciej Otulak SME Access to Finance Brussels 28 th November 2013 Access to finance for.

Investing in Greece (or through Greece) George Kourtis President, HVCA Partner, Global Finance 7 th Venture Capital Forum June 2006.

16-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 16 Managing Finances.

The Role of Government in the United States Economy How does the United States government promote and regulate competition?

1 Financing Innovative SMEs in Europe José Palacín Economic Cooperation and Integration Division United Nations Economic Commission for Europe Dubai International.

Financial Markets and Institutions. Financial Markets Financial markets provide for financial intermediation-- financial savings (Surplus Units) to investment.

Investment You will not be able to work forever and saving for retirement becomes a must = financial goals must be made for financial security. Investing.

An Overview of Financial Management Class Objectives Read, interpret, and analyze financial reports Manage working capital and profits Understand the.

OVERVIEW OF CAPITAL MARKET DEVELOPMENT IN THE LAC REGION Carolin A. Crabbe Infrastructure and Financial Markets Division INTER-AMERICAN DEVELOPMENT BANK.

1 CIP Financial Instruments Leverage Effects European Commission Economic and Financial Affairs DG - Luxembourg, Unit L2 James Mc GING Head of Unit, ECFIN-L2.

Finance for innovation and growth UNECE Helsinki, 3 June 2010 Vesa Vanhanen.

Funding Structures some ideas for designing innovative funding instruments Brigitte Hatvan.

The 9th European Financial Markets Convention “Towards true integration by 2009” Practitioners in an incomplete Internal Market Georges Noël Director of.

10/5/20151 A CREATION OF VALUE TO (INVESTORS)SHARE HOLDERS By M.P.NAIDU.

EU- Israel SME Dialogue EU SME Policy - update 26 June 2014 Tel Aviv.

Financial plan. Forms of Financing  Major categories of financing: 1) debt 2) Equity.

The Impact of the Global Crisis on SME and Entrepreneurship Financing Pier Carlo Padoan OECD Deputy-Secretary General Urbino, 21 April

© Cumming & Johan (2013)Fund Manager Compensation Cumming & Johan (2013, Chapter 6) 1.

Introducing the European Investment Fund 1`````` ```````` ```````` `` Nitan Pathak September 2015.

Venture Capital. Venture capital refers to organized private or institutional financing that can provide substantial amounts of capital mostly through.

EQUITY in finance Damian Sternberg. Company BANK EQUITY capital External finance EQUITY capital is the amount of a company´s capital which is owned by.

European Investment Bank Group

Nuno Gonçalves Bratislava, 10 June 2008 The Portuguese Experience to Promote SME and Entrepreneurship Financing.

Changing landscape for financing local energy systems Karl Harder, Cofounder Abundance Generation Authorised and regulated by the Financial Conduct Authority.

Equity Versus Debt Debt Equity Credit Card ST Credit Facility Bank Loan Bond SharesVenture Capital Business Angels Creditors get: Periodic interest payments.

3.1 Sources of Financing Chapter 18 Part 2.

“The challenges for revenue growth and profitability in a declining interest rate and low inflation environment.” Myles Ruck Chief Executive Liberty Group.

The Private Equity and Venture Capital Industry

How to Encourage Greater Private Equity Investment in Latin America Development of Non-Bank Financial Institutions in Latin America December 5, 2002 J.

CHAPTER 1 The Role and Environment of Managerial Finance

Property Rights Protection and Bank Loan Pricing Kee-Hong Bae Korea University Vidhan K. Goyal Hong Kong University of Science and Technology.

AECM and the Different European Guarantee Models Berlin, 5 May 2006M. Sousa Branca.

EVCA Quarterly Activity Indicator Q Q August 2009 PEREP_Analytics TM.

 Capital Spending: money spent by a business for an item that will be used over a long period.  Capital Projects: spending by businesses for items such.

Important Details. Debt and Equity To start a firm requires $ for plant, equipment, product development, etc Those $ will be part (or all) of fixed costs.

The role of alternative finance in EU Capital Markets Union Presentation to Conference on European Alternative Finance & Marketplace Lending London, 28.

Building a Capital Markets Union for the EU. Capital Markets Union: A Commission priority Growing businesses critical to jobs and economic growth in Europe.

Venture Capital & Private Equity: An Invested Investment STEVEN WHITTINGHAM PRESIDENT, FIRST GLOBAL FINANCIAL SERVICES LTD. November 6, 2013 CGSR 10 th.

RUDY AERNOUDT ISME Seminar Kanton - 3 july 2008 Funding SMEs in Europe: Challenges and policy answers.

SME Financing to Promote Innovation in Korea Soon-Yeong Hong.

COSME Financial Instruments for SMEs 20 March 2014 George Lemonidis (Deputy Head of Unit) Unit D3: SME Access to Finance Directorate General for Enterprise.

Match Funding & Mixed Finance Models

Financing high growth firms

Glenda Napier Global Venture Capital Markets and the Policy Challenges IKED/INSME International Roundtable, February 26, 2004.

Association for Financial Markets in Europe

A Framework For Economic Development Objectives

Presentation transcript:

INSTITUTIONAL FRAMEWORK AND SME ACCESS TO FINANCE PROF. DR. SOPHIE MANIGART VLERICK BUSINESS SCHOOL AND GHENT UNIVERSITY

FUNDING GROWTH IS CRUCIAL FOR THE SUCCESS OF COMPANIES 2 Development Stage Source: EY; Frontier Economics; EVCA

© Vlerick Business School

MOST ACTIVE CROWDFUNDING CATEGORIES

© Vlerick Business School FUNDS PAID OUT PER EQUITY BASED PROJECT

FUNDING GROWTH IS CRUCIAL FOR THE SUCCESS OF COMPANIES 2 Development Stage Source: EY; Frontier Economics; EVCA

© Vlerick Business School

THE VENTURE FUNDING LANDSCAPE IN THE US COUNTS MANY DIFFERENT PLAYERS IN ALL STAGES

© Vlerick Business School US COMPANIES RAISE MORE VC FUNDING US EU First round$ 7 mio€ 3,2 mio Cumulative VC amount$21 mio€10,4 mio

© Vlerick Business School THIS LEADS TO HIGHER GROWTH IN US COMPANIES

© Vlerick Business School VC IN EUROPE IS THREATENED  Banks: Basel III regulation  Insurance companies: Solvency II regulation  National/regional public policy focuses on small funds, but big money is needed  Public policy invested 30%-40% of new money in european VC funds between

© Vlerick Business School BELGIUM SCORES LOW ON BROAD INSTITUTIONAL FACTORS Source: Groh, Liechtenstein, Lieser, (Stock market, M&A) Quality of education

© Vlerick Business School A STRONG INSTITUTIONAL FRAMEWORK LEADS TO MORE SME FINANCING SUPPLY OF FUNDING  Legality index  Effectiveness of legal system, absence of corruption, risk of contract repudiation,…  Self-dealing protection  Legal protection of minority shareholders  Creditor rights protection DEMAND FOR FUNDING  One-share-one-vote  Bankruptcy regulation and execution  Discharge available?  Bankruptcy process costs? Duration?

© Vlerick Business School LEGAL FRAMEWORK AND SME FINANCING IN EUROPE MORE EQUITY RAISED IF…  Stronger legality index (+22%)  Better protection against self-dealing (+79%) MORE DEBT RAISED IF…  Stronger legality index (+13%)  Stronger creditor rights (+12%)  Discharge after bankruptcy (+79%)  Quicker bankruptcy closing, lower closing costs

© Vlerick Business School POSITION OF BELGIUM COMPARED TO UK

© Vlerick Business School CONCLUSION  Improving the legal (and, more broadly, the institutional) environment for  Minority shareholders  Creditors  Entrepreneurs would strongly enhance the availability of funding for SMEs  …at low cost for public policy!

© Vlerick Business School FUNDING