SMEs struggle against European Commission funding rules » SMEInsider

SMEs struggle against European Commission funding rules

Small and medium-sized businesses are often hamstrung by European Commission rules preventing them from “shopping around” for appropriate financing.

Eurochambres, the Association of European Chambers of Commerce, has told the commission that SMEs are struggling to gain access to funding for start-ups and expansion, the Telegraph reports.

Regulatory restrictions are seen as the main hurdle in the way of companies seeking a better financing deal outside their national boundaries, prompted by a lack of risk culture.

Eurochambres highlighted “the alarming mismatch that has developed between European banks’ services and the needs of key sectors of the business community”. The organisation wants the commission to create a genuine single market to ensure growth and better support for entrepreneurs seeking investment. It said that this should be coupled with more equity-friendly tax regimes to foster a more entrepreneurial and risk-taking culture in the long-term.

Miquel Valls Maseda, vice-president of Eurochambres, said: “It is clear that many entrepreneurs face huge problems in trying to acquire the type of finance they need at the time they need it most. This asymmetry must be addressed as a matter of urgency by the EU’s leaders for the new term.”