SMEs require access to appropriate sources of financing across all stages of their life cycle - for their creation, development and growth. Swings and shocks in credit markets impact SME access to bank finance, on which they are overly reliant. Furthermore, long-standing challenges, such as information asymmetries, high transaction costs and insufficient financial skills and knowledge among small business owners, persist. In addition, the potential of financing instruments other than straight debt often remains underdeveloped. Micro-enterprises, innovative ventures, start-ups and SMEs run by underrepresented groups tend to face particular difficulties in accessing finance.
The OECD is an international reference on SME financing, monitoring and assessing trends in SMEs' and entrepreneurs' access to finance and government support policies. Work also aims to shed light on non-traditional financing instruments which are currently under-developed, in order to address SMEs’ diverse financing needs, boost their resilience and enhance their contributions to a sustainable and inclusive economy.