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 SMES/micro-businesses and financing their growth for the benefit of jobs and efficiency

SMES/micro-businesses and financing their growth for the benefit of jobs and efficiency

Type of text : Opinion and report
Type of referral : Own initiative
Working group : Section for Economy and Finance

Rapporteur(s) :

Frédéric BOCCARA
Qualified individual
Date adopted : 15/03/2017 | Period : 2015-2020
 
SMEs/micro-businesses are a major source of job creation. Located in the nation's heartlands, across all local communities, these 2.5 million-plus companies are considered in all their diversity.
 
The main change they are facing is the information revolution - which is currently in its digital phase. This is prompting a new way of doing things and bringing about other criteria for assessing companies' business - where precedence is given to human capability, training, research, intangible investment and therefore efficiency, which concerns all value added relative to the investment - over and above the return.
 
The energy transition raises similar challenges for training and investment if it is to succeed.
 
Coordinating SME/micro-business growth and financing for the common good – namely jobs and improvement in terms of efficiency – is crucial. This calls for economic, social and cultural ambition and a turning-away from a certain distrust that has been detrimental to relations between SMEs/micro-businesses and the banking and financial system.
 
Financing comes in an array of forms: equity, bank loans, market-based financing or savings. Bank financing is the primary source, especially since the equity situation has improved.