Examining the Financing Disparity Between SMEs and Large Firms in the Euro Area Our analysis, based on the SAFE report, highlights the ongoing challenges SMEs face in accessing finance. Historical data (2011 - Q2 2024) shows that while the financial cost gap between large firms and SMEs is expected to decrease slowly—from 10-20%—it will persist into the next year despite improving economic conditions. With SMEs making up 99.8% of #EU companies and generating 58% of GDP, high borrowing costs can severely impact their growth and even survival. This situation creates a cycle where limited access to finance leads to increased bank risk perception, further constraining lending. For deeper insights into our findings and their implications, we invite you to explore our research. https://buff.ly/3ZMt0PI #SMEs #Finance #EconomicGrowth #SAFEReport #ResearchInsights #investmentbanking #corporatefinance #privatedebt #privateequity #venturecapital #alternativefinance #alternativeinvestments #privateplacement #consumerlending #financialservices #longterminvestments #investmetnmanagement #equity #ipo #mergersandacquisitions #saas #fintech #healthtech #healthcare #lending #mobility #logistics #lendingplatforms
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BCG’s Corporate and Investment Banking Report 2024 is now live! The report shows that growth in corporate and investment banking is lagging behind global GDP, while non-bank financial institutions are rapidly gaining market share. In this evolving landscape, transformation is no longer optional— it's essential to embracing value migration in the sector. Download and read the full version of the report now: https://lnkd.in/gr2W7z8E https://bcg.smh.re/D5z
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BCG’s Corporate and Investment Banking Report 2024 is now live! The report shows that growth in corporate and investment banking is lagging behind global GDP, while non-bank financial institutions are rapidly gaining market share. In this evolving landscape, transformation is no longer optional— it's essential to embracing value migration in the sector. Download and read the full version of the report now: https://lnkd.in/eAVb3mEg https://bcg.smh.re/DEX
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BCG’s Corporate and Investment Banking Report 2024 is now live! The report shows that growth in corporate and investment banking is lagging behind global GDP, while non-bank financial institutions are rapidly gaining market share. In this evolving landscape, transformation is no longer optional— it's essential to embracing value migration in the sector. Download and read the full version of the report now: https://lnkd.in/dgCHfC3j https://bcg.smh.re/D85
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Today, "The Banker" featured our latest analysis alongside my comments on the emerging opportunities for banks to finance the low-carbon transition. Our analysis reveals that banks have the potential to contribute up to $600 billion annually in financing and investment, with an opportunity to generate $44 billion in annual revenues by 2030.
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Insights from The World Bank Group Report on Firm Financing Official Link: https://lnkd.in/dxxtaD45 The World Bank's publication, Unleashing Productivity via Firm Financing, authored by Tatiana Didier and Ana Paula Cusolito. This comprehensive report sheds light on the critical financing gaps faced by small and medium enterprises (SMEs) in middle-income countries (MICs) and their profound impact on economic growth and productivity. Key findings include: - Financing Gaps: SMEs, essential drivers of job creation, struggle with access to finance, particularly equity. The report highlights that enhanced allocation of capital can lead to significant productivity gains - up to 86% in MICs. - Impact of Financial Constraints: The research reveals how limited financing hinders firms' ability to innovate and invest, particularly during crises like the COVID-19 pandemic. - Policy Implications: The report emphasizes the need for targeted policy interventions that address specific financial market failures, ensuring that SMEs can thrive and contribute to economic resilience. This report is a valuable resource for policymakers, researchers, and all interested in economic development. It underscores the importance of effectively supporting SMEs to unlock their full potential and drive sustainable growth. #SMEs #productivity #economicdevelopment #worldbank #financing
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We at SME Finance Forum, Managed by the IFC (International Finance Corporation) are witnessing many promising entries pouring in from SME finance innovators from around the world, clearly the market innovations are gaining momentum. Of the 4 categories of our annual awards, a key award is the “Product Innovation Award of the Year”. Product programs bring scalability as well as alignment to SME needs while also allowing financial institutions to measure performance and take proactive product performance enhancement measures. We recently held information sessions, short summary appended, on product innovation of the year category where not only we highlighted key aspects on how to apply for the awards but also had past winners such as CredAble, GlobalLinker, and JUMO share their success stories and their experience in applying for the awards. This year we would be looking at different categories of products (lending, transaction banking, digital, trade, sustainability, supply chain finance, treasury, embedded finance etc.) across all 4 key market segments: ✨Commercial Banks ✨Non-Banks and Fintech Lenders ✨Development Finance Institutions ✨Platforms and Technology Innovators Please click on the the following links for details: Product Innovation Information session: https://lnkd.in/duDwCBcF Apply for the awards: https://lnkd.in/dVq7XBtr #SMEFinance #InnovationAwards #ProductInnovation #FinanceExcellence #GlobalOutreach #CollaborativeFinance #WomenEntrepreneurs #SustainableFinance #FintechLeaders #SMEForum
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🚀 SMEs at the mid-point of 2024: optimism & challenges ahead Looking towards the election in July, SMEs were largely optimistic. Half of them planning to grow, and two-fifths were set to innovate, bouncing back to pre-pandemic levels! However, within this group of ambitious innovators - from start-ups to larger SMEs - funding remains a challenge. Despite recovering profits and credit balances, rising costs, economic uncertainty, and recruitment issues persist. While demand for finance is low, success in securing funds still favours larger, more experienced SMEs. Understanding the diversity of SMEs - by size, sector, and ambition - is crucial to supporting this vital part of the economy. Read more of the Q2 2024 report in the comments below 👇 #SMEs #BusinessGrowth #Innovation #Finance #UKBusiness Caroline Ahmed Matt C. Carl Phillips Jacqui Banerjee Lucy Watts Karen Troubridge Max Clapham Edward Wheeler
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A recent survey from the Bank of England and the Department for Business and Trade reveals that 20% of SMEs have underinvested in their business over the past three years. Despite this, many SMEs remain hesitant to seek external finance. At Precision, we can help bridge this gap, ensuring your business receives the investment it needs for growth.
One-Fifth of SMEs Have Underinvested in Growth: Is Now The Right Time To Raise Capital? - SME News
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New client data from IFC's #BankingOnWomen portfolio demonstrates why women-owned enterprises in emerging markets are an outstanding bet. Year after year, NPLs are lower for women customers. Check out the data here: https://lnkd.in/eSRgzS_x IFC - International Finance Corporation, Financial Alliance for Women, SME Finance Forum, Managed by the IFC (International Finance Corporation), Women Entrepreneurs Finance Initiative (We-Fi), Laila Nordine, Nathalie Akon, Amy Luinstra, Henriette KOLB, Meaghan McGrath, Allen Forlemu, Aliou Maiga, Momina Aijazuddin, Vittorio Di Bello, Jose Etchegoyen, Dr. Colin Daley, DBA, OLY, Jorge Godoy, Jiayi Ma, MONTSERRAT GANUZA, Anushe Khan, Aishwarya Geete, Shriya Bahul, Elena Renjel, Fredrica Mayer
Tailoring financial products and services that expand access to finance for women and women-owned businesses isn’t just the right thing to do, it’s also an opportunity for financial institutions to build bottom-line value and reach an underserved customer base. For the 7th year in a row, IFC - International Finance Corporation’s annual survey of its emerging market financial institution clients shows that women-owned SMEs (W-SMEs) consistently exhibit 𝘭𝘰𝘸𝘦𝘳 rates of non-performing loans and that W-SME deposit size is 𝘭𝘢𝘳𝘨𝘦𝘳 than the average SME deposit size. Check out the latest report here to learn more about the value of #BankingOnWomen! https://lnkd.in/eSRgzS_x
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🌟 Preparing for 2025: Five Key Focus Areas for SMEs 🌟 As we approach 2025, navigating a fast-changing economic and business environment is more important than ever for SMEs. In this insightful article, Douglas Grant, Managing Director of Conister Bank and CEO of Manx Financial Group PLC (MFG), highlights five critical areas businesses should prioritise: 1️⃣ Adapting to Economic Recovery and Political Changes: Stay ahead of policy shifts and leverage government initiatives. 2️⃣ Tackling High Inflation: Refine pricing strategies, manage cash flow, and embrace operational efficiencies. 3️⃣ Leveraging Technological Advancements: Enhance competitiveness while prioritising cybersecurity. 4️⃣ Sustainability and ESG Practices: Meet regulatory requirements and align with consumer expectations. 5️⃣ Workforce Development and Retention: Invest in skills, flexible working, and workplace culture to attract and retain talent. Read the full article here: https://lnkd.in/eVtrNpPY #BusinessGrowth #FinancialInsights #SMEFocus #Sustainability #ConisterBank
Five areas for businesses to consider in 2025
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