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HGSMEs & Innovation“Access to Finance”
Module
A Proposal for a Pilot Survey Questionnaire
(Draft)
THE OBJECTIVES OF THE PILOT SURVEY
P. Sicari OECD Statistics Directorate
Detecting and Tracking Financing Gaps !
The Main Objective:
What for an approach?
Limited advantages from a static approach: the analysis of financing gaps must vary according to firm size and
sector of activity
Collateral Objective:
Determining wether debt and equity finance vehicles display
a different impact on firms’ growth, taking firm size and
sector of activity into account
THE SURVEY’S TARGET
1. Because of their pioneering role in economic growth.
2. Because of their easier access to risk capital, that allows for a fair comparison of the (allegedly) different impacts of debt and equity finance on growth.
P. Sicari OECD Statistics Directorate
MAIN FEATURES OF THE SURVEY QUESTIONNAIRE (1)
P. Sicari OECD Statistics Directorate
Two different but parallel level of analysis:
• Growth-Oriented Investments and Expenditures
•Financing Vehicles
The survey will highlight not only the firms’ demand for every category of financing vehicle, but also its
causal link to specific forms of investments!
MAIN FEATURES OF THE SURVEY QUESTIONNAIRE (2)
P. Sicari OECD Statistics Directorate
Firms will be requested to specify:
The total amount of new Growth-Oriented Investments and Expenditures made during the reference year.
The amounts of new Growth-Oriented I&Es directed to the following sub-categories: ICT, PRODUCT, PROCESS and HUMAN RESOURCES.
How, in percentage terms, the 4 amounts of the previous point were subdivided into (suggested) components.
MAIN FEATURES OF THE SURVEY QUESTIONNAIRE (3)
P. Sicari OECD Statistics Directorate
Firms will be requested to specify:
How new Growth-Oriented Investments and Expenditures were financed, by indicating the total amount covered through Debt and/or Equity finance.
How, in percentage terms, total amounts of Debt and Equity were subdivided into single Debt and/or Equity financing vehicles.
Whether planned Growth-Oriented I&Es have been somehow affected by an inability in borrowing sufficient funds.
MAIN FEATURES OF THE SURVEY QUESTIONNAIRE (4)
P. Sicari OECD Statistics Directorate
Specific sections surveying the relationship between firms and debt/equity finance providers.
Objective ?
Trying to determine the exact source of possible financing gaps:
Are they demand-side or supply-side?
MAIN FEATURES OF THE SURVEY QUESTIONNAIRE (4BIS)
P. Sicari OECD Statistics Directorate
How to define the exact nature of financing gaps?
oBy exactly determining the temporal sequence of active and passive interventions of all possible
finance providers (Who was the first provider the firm applied to? Successfully or unsuccessfully?)
oBy demanding the firm to indicate all possible reasons that could explain its failure in reaching agreements with debt and/or equity providers
THE POLICY IMPLICATIONS (1)
P. Sicari OECD Statistics Directorate
SMEs
FINANCE PROVIDER
S
Usually claim they have a restricted access to financing due
to shortage of supply
Claim there is plenty of “unplaced” financing due to low average quality
of firms’ investment projects
THE POLICY IMPLICATIONS (2)
P. Sicari OECD Statistics Directorate
POLICY MAKERS
Demand-Side Oriented
Supply-Side Oriented
What policy to foster Access to Finance?
Policies aiming at easing access to bank loans for HGISMEs, usually by means of
state guarantee schemes.
Policies aiming at improving HGISME
investment readiness and fostering the
quality of their growth strategies.
THE POLICY IMPLICATIONS (3)
P. Sicari OECD Statistics Directorate
POLICY MAKERS
….the Current Situation……
Absolute prevalence of supply-side-
oriented supporting
policies
Increasing commitment
towards rationalization of public spending
THE POLICY IMPLICATIONS (4)
P. Sicari OECD Statistics Directorate
…to conclude, an example of the main policy issues addressed by the survey questionnaire:
If almost all public policies supporting SME’s access to finance aim at reducing restrictions by compensating finance providers for higher operational risks;
and if, as it seems to be, there is no clear evidence of any global shortage of financial resources to invest:
Aren’t we by chance just fuelling market imperfections by not focusing on the demand-side in order to improve the
investment readiness of firms, while preferring to act through risk compensation schemes that might produce inefficient
spending??? (additional resources would flow right were they are already
available)