Solving the SME conundrum, part one: IPOs – The backbone of SME eco-structure
As the mainstay of many major economies, small and mid-cap businesses have a critical role to play in the post pandemic recovery. In the US, small firms were responsible for 63% of net new jobs created between 1993 and mid-2013, or more than 14 million of the nearly 23 million net new jobs created during this period 1,2. Similarly, SMEs accounted for 99.8% of all enterprises in the EU non-financial business sectors and represented 66.6% of total employment 3. As a result, governments globally are looking to stimulate re-equitization and boost investment in SMEs; the question is how best to achieve this objective.
In this four-part series, Solving the SME Conundrum, we look at the challenges facing SMEs and their access to capital markets. In part one, we explore the reasons why primary markets are a critical component of a successful SME ecosystem and what needs to be addressed to encourage further SME growth.
The report has been compiled by Vicky Sanders, Global Head of Investment Analytics, in partnership with Rebecca Healey and Charlotte Decuyper, Redlap Consulting