Better access to finance

Small businesses often have difficulties financing their growth and innovations. The European Commission is working with the Member States to stimulate the provision of loans and venture capital for SMEs.

Getting an innovative firm off the ground or expanding it requires money, but financing SMEs is a risky proposition for financiers. To solve this, Europe needs more investors and banks willing to take the risk, and European entrepreneurs need a better understanding of investors' and banks' concerns in order to be able to provide assurances about the soundness of their proposal.

What does the EU do?

• We improve the financing environment for small businesses in Europe to help innovation and growth. This happens both through our own policies and by helping the Member States to share good policies and benefit from the experiences of others.
• The Commission is also helping small businesses to overcome financial market weaknesses, mostly by working together with various financial institutions to provide them with funding. The goal is to increase the opportunities for small businesses to obtain finance from banks, guarantee providers and venture capital funds.