SMES IN EUROPE:
NEW LEGAL FORMS AND NEW
FINANCING OPPORTUNITIES
Business Law Course Siena, 21 November 2017
1
Dr. Eugenia MacchiavelloLecturer in Banking Law, Economics and Business Department, University of Genoa
Ph.D. in Corporate Governance, University of Genoa (2011)
LL.M. 10, New York University
A) INTRODUCTION: SMES AND THEIR IMPORTANCE IN EUROPE
1. Definition of SMEs
Company
category
Staff
headcount
Turnover or Balance
sheet total
Medium-
sized
< 250 50 M 43 M
Small < 50 10 M 10 M
Micro < 10 2 M 2 M
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EU recommendation 2003/361
A) INTRODUCTION: SMES AND THEIR IMPORTANCE IN EUROPE
2. Why the EU cares about SMEs?
99.8% of companies in the EU in the non-financial business are SMEs
92.8% are actually micro-enterprises (30% jobs and 21% VA)
they provide two thirds (67%) of private sector jobs
they contribute to more than half of the total added value created by businesses in the EU (57%)
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(source: EC Annual Report on European
SMEs 2015/2016)
B) MAIN PROBLEMS FACED BY EUROPEAN SMES
1. General
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(source: EC 2017 SAFE SURVEY)
(source: EC 2013 SAFE SURVEY)
B) MAIN PROBLEMS FACED BY EUROPEAN SMES
2. A special focus: current EU priorities
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Access to finance
Expansion and growthAccess to finance
Growth and
expansion
B) MAIN PROBLEMS FACED BY EUROPEAN SMES
3. Therefore, EU policies in favour of SMEs/1
Small Business Act (see Commission, Think Small First - A Small Business Act for Europe, 25 June 2008, COM/2008/0394 final - Communication; Commission, Review of the "Small Business Act" for Europe, 23 Febr. 2011, COM/2011/0078 final); Towards a Single Market Act For a highly competitive social market economy (COM(2010) 0608) and the Single Market Act II (COM(2012) 0573):
smart regulation, access to finance, competition, internationalization, business support for SMEs simpli1ications and exemptions from competition law, company law and taxation for SMEs o E.g. under EU State law, government grants, tax advantages o subsidized
loans to firms > 200.000 (de minimis) prohibited unless authorized by EC and for economic development of certain depressed areas or important project of European interest/serious economic disturbance in a MS or certain economic activity not affecting internal market (art. 107(3) TFEU)
o BUT see general block exemption (GBER) from State aid notifications art. 107(3) TFEU(Regulation (EU) No 651/2014): e.g. investment aid for SMEs up to EUR 7,5M; aid for access to finance (loans, guarantees, grants, discount on costs for screening/due diligence) for start ups up to 1M, 1.5M, 2M under certain conditions (double when innovative)
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B) MAIN PROBLEMS FACED BY EUROPEAN SMES
4. Therefore, EU policies in favour of SMEs/2
o Directives: Services Directive (2006/123/EC), Late Payment directive (2011/7/EU), public procurement directive (2014/24/EU) , New Accounting Directive (2013/34/EU), Directive on e-invoicing (2014/55/EU): To reduce regulatory barriers to cross-border service activities
To reduce late payments in commercial transactions
simplifying procedures and formalities for lighter administrative burdens when accessing public procurement and have better opportunities for joint bidding
to simplify financial reporting obligations and reduce administrative burdens for SMEs, especially for micro-undertakings
o Dedicated EU Programs for business support (including networks and incubators), research (Horizon 2020) and funding (EIF/EIB, COSME, etc.; see later on)
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B) MAIN PROBLEMS FACED BY EUROPEAN SMES
4. In particular, expansion. Critical issues
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Opening up to investors to grow (see access to finance):
o risk of losing control (dilution)
o high costs (regulatory requirements, legal advice, etc.)
o asymmetric information (small and new firms no track record or
collateral)
o limits in private legal form (see financing constraints)
Cross-border expansion:
o Customers trust in national firms (need to open a subsidiary,
instead of a branch, under host country national laws):
in 2012 only 11% purchased goods from retailers/sellers in in other EU
countries vs 41% from national operators (EC Consumer scoreboard 2013)
o Varietyofnationalregulationsobstacles(e.g. legal advice and
translation costs)
Only 25% of European SMEs export to another country (in 2008 only 8% of
SMEs engaged in cross-border trade and 5% had subsidiaries or joint
ventures abroad)
C) LEGAL FORMS FOR SMES
1. Prevalent legal form used by European SMEs
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Private limited
company form
(57% of SMEs):
o low capital
o control by the
founder
(limitations in
share transfer)
o flexibility in the
organization
o risks for minority
shareholders/cre
ditors
57% of
SMEs (and
94% of
limited
liability
SMEs)
44%
56%
Source: EC
SWD2014/124
60%
C) LEGAL FORMS FOR SMES
2. Legal forms and geographic expansion: obstacles
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No harmonization of legal forms for SMEs at EU
level
o vs Societas europaea for large listed companies and
European Cooperative Company (European forms but
anyway low level of harmonization);
Therefore, cross-border activity complex (see
above):
o Need to comply with very different national laws (with
different requirements as regards internal organization and
protection of creditors/minority shareholders)
o creating a subsidiary abroad is costly also because of
translation costs and legal advice
C) LEGAL FORMS FOR SMES
3. An European legal forms for SMEs? Proposals
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2008 Proposal of societas privata
europaea (SPE) as an European form
(through Regulation)
But failed because of obstacles in
wide differences among MSs
regulation and political divergences
o double seat (real vs registered seat
revised in the compromised proposal
2011)
o minimum capital (1; revised)
o participation of employees (co-
determination in Germany - revised)
o protection of minority shareholders
and creditors (see lack of
standardization, differences in
governance and available protective
measures)
2014 Proposal for societas unius
personae (SUP) as harmonization
(only of key elements) Directive
(national form)
o Minimum capital 1 (meanwhile reforms)
o harmonization of requirements and
standard form to overcome procedural
and language difficulties
o Electronic registration
o Since no minorities, many aspects of
functioning left to national laws (see
contributions in kind or related party
transactions)
o To protect creditors, solvency test and
balance sheet certification (member
and directors liability); information on
disqualification of directors
o But if need to issue more shares, need to
transform into another national legal
type (so if expansion, transformation)
D) LEGAL FORMS FOR SMES, WITH SOCIAL OBJECTIVES: SOCIAL ENTERPRISES
1. Definitions/1
Social enterprise - EU Definitions:
1) a social enterprise is an operator in the social economy whose main objective is to have a social
impact rather than make a profit for their owners or shareholders. It operates by providing goods and
services for the market in an entrepreneurial and innovative fashion and uses its profits primarily to achieve social objectives. It is managed in an open and responsible manner and, in particular, involve
employees, consumers and stakeholders affected by its commercial activities
(Commission Communication COM (2011) 682 final social business initiative)
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D) LEGAL FORMS FOR SMES, WITH SOCIAL OBJECTIVES: SOCIAL ENTERPRISES
2. Definitions/2
2) undertaking which (ii) has the achievement of measurable, positive social impacts as its primary objective in accordance with its articles of association, statutes or any other rules or instruments of incorporation establishing the business, where the undertaking: - provides services or goods to vulnerable or marginalised, disadvantaged or excluded
persons, - employs a method of production of goods or services that embodies its social objective, or - provides financial support
exclusively to social undertakings as defined in the first two indents; (iii) uses its profits primarily to achieve its primary social objective in
accordance with its articles of association, statutes or any other rules or instruments of incorporation establishing the business and with the
predefined procedures and rules therein, which determine the circumstances in which profits are distributed to shareholders and
owners to ensure that any such distribution of profits does not undermine its primary objective; (iv) is managed in an accountable
and transparent way, in particular by involving workers, customers and stakeholders affected by its business activities
(art. 3(1)(d) of Regulation (EU) no. 346/2013, of 17 April 2013, on European social entrepreneurship funds - EuSEF; see also art. 2(1) of Regulation (EU) no. 1296/2013 of 11 December 2013, on a European Union Programme for Employment and Social Innovation -EaSI) 13Macchiavello - Business Law Course
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D) LEGAL FORMS FOR SMES, WITH SOCIAL OBJECTIVES: SOCIAL ENTERPRISES
3. Main features as identified by the European Commission
Entrepreneurial dimension: engaged in regular economic activity (vs typical not-for-profit organizations)
Social dimension: primary and explicit social purpose (vstraditional commercial companies/CSR) certain socially useful activity (including work integration of
disadvantaged people or workers);
but how to identify social benefit? need of certain activity at the benefit of communities or also simply destination of profits to certain associations?
Governance dimension: governance mechanisms to lock in social dimension
inclusive/democratic governance (e.g. involvement of various stakeholders in the management of the enterprise)
limits (partial/total) on distribution of profits and/or assets
social report, fair and equitable treatment of workers14Macchiavello - Business Law Course
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D) LEGAL FORMS FOR SMES, WITH SOCIAL OBJECTIVES: SOCIAL ENTERPRISES
4. Social enterprise and legal forms: regulatory trends in MSs
No specific legal form in EU definition: each MS
decides
o in Denmark, 14 legal forms available; in Italy, social
enterprises can be cooperatives, foundations, associations
or companies
o in France, Italy, Poland and Greece, adaptation of traditional
cooperative form for social cooperatives
o in Belgium, special legal form: Social Purpose Company
status available to cooperatives and share companies
o In the UK, creation of the Community Interest Company
form adapting company form
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D) LEGAL FORMS FOR SMES, WITH SOCIAL OBJECTIVES: SOCIAL ENTERPRISES
5. Social enterprise and legal forms: problematic aspects
Idea that not-for-profit form (ownerless, self-controlling and self-perpetuating managers; not incentives to reduce costs) is less efficient than company formo But more efficient when contractual failure (see Hansmann)
Governance problems in double-bottom line entities with company form: managers duties and conflict of objectiveso Risky ex post evaluation of managers choices and managers freezed
o vs possible monitoring or excessive discretion (see Hopt)?
o Stakeholders action against managers?
So, inadequacy of existing models (see also cooperatives for the benefit of members, not community as a whole) and need of special (hybrid) forms? a real solution?o See new legal forms in:
US (L3C, BC): also grants as funding; dual objective
Italy (societ benefit): dual objective (managers discretion), social manager, social report, 50% cap on dividends, liability only to shareholders (but misleading promotion rules?)
the UK (Community Interest Company): prioritization of social goal, stakeholders participation, cap on dividends distribution, public monitoring
In Belgium (socit finalit sociale): dividends cap, liability to stakeholders, social report, voting rights limits, workers participation
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D) LEGAL FORMS FOR SMES, WITH SOCIAL OBJECTIVES: SOCIAL ENTERPRISES
6. Social enterprise and EU State aid law/1
Sustainable business? (see also constraints on distribution of profits)
needofsubsidiesandsocialinterestcanjustifygovernmentsupport
o butStateaidin form of grants,taxadvantagesandothereconomicadvantagesabletodistortcompetitionandaffecttheInternalmarketareprohibited under EU State aid law, unless exception/permission (Artt. 107, 106 TFEU)o GBER (for SMEs, certain sectors, etc.: see above)
o Services of General Economic Interest (SGEI national definitions) (seeAltmark decision Case C-280/00 [2003] ECR I-7747 and Ferring Case C-53/00 [2001] ECR I-9067; EC Communication COM(2011) 146 final of 23 March 2011 on the Reform of the EU State Aid rules on Services of General Economic Interest and Communication 2012 on The application of the European Union State aid rules to compensation granted for the provision of services of general economic interest; Decision 842/2005)
need of formal entrustment
Proportionate compensation (no > relevant costs and reasonable profit) considering for public interest obligation
Compensation parameters set in advance in a transparent and objective way
Public procurement procedure or compensation set based on average cost of well-run undertaking
No aid when up to 500.000 over 3 years (de minimis)
No notification when certain social services (for the remaining, when < 15M compensation) (block exemption)
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D) LEGAL FORMS FOR SMES, WITH SOCIAL OBJECTIVES: SOCIAL ENTERPRISES
7. Social enterprise and EU State aid law/2
o ECJ seems to admit grants or tax advantages for
cooperatives to the extent that they are different
from other business organizations (e.g. person-centred,
democratic) and social enterprises under certain
conditions See ECJ 8 September 2011 (C-78/08 a C-80/08) on Italian cooperatives
See 2011 EC decision to approve UK support to Big Society Capital (art.
107(3)c TFEU about support to certain economic activities; GBER; de
minimis)
Opinion of Advocate General Jacobs, 23 March 2000, Joined Cases C-180/98
to C-184/98, Pavel Pavlov and Others v Stichting Pensioenfonds Medische
Specialisten; ECJ 21 September 1999, Case C-67/96 Albany International v
Stichting Bedrijfspensioenfonds Textielindustrie; Opinion of Advocate
General Fennelly, 11 May 2000, Case C-222/98, Hendrik van der Woude v
Stichting Beatrixoord; Opinion of Advocate General Jacobs, 17 May 2001,
Case C-475/99, Ambulanz Glckner v Landkreis Sdwestpfalz, 6918Macchiavello - Business Law Course
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E) SMES AND ACCESS TO FINANCE
1. Obstacles and SMEs main sources of funding
SMEs (and especially start-ups) are opaque (no public information
available, not always credit history and other credit information accessible;
see differences in credit information agencies/bureaux) and appear riskier
(less diversification, no collateral)
no harmonization in insolvency law and therefore no clarity legal
uncertainty for investors/creditors (current Commission proposal)
In 2015, 77 % of outstanding SME funding in Europe was provided
by banks (able to overcome asymmetric information) concentration
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E) SMES AND ACCESS TO FINANCE
2. Main causes of SMEs limited access to finance/bank funding
But post-crisis credit crunch (still not recovered pre-crisis levels but definitely better): in 2012, o 1/3 of surveyed SMEs applied for bank funding but obtained only a part of the
amount requested or were rejected or refused the loan because of the high costs.
o smaller and younger SMEs registered a rejection rate of, respectively, 18% and 27% (vs larger firms3%)
o SMEs obtaining credit, experienced less favourable conditions (rise in interest rates, shorter maturities of loans and increased requests of collateral)
After the crisis, bank capital requirements can penalize SMEs (CRD IV/CRR)
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E) SMES AND ACCESS TO FINANCE
3. Main causes of SMEs limited access to finance/capital markets
- Equity accounts for only 12% of SMEs funding and debt securities for 3%;
- of the 20 million SMEs in Europe, only 3,000 are listed on stock-exchanges, because of :
Expensive procedures for recourse to traditional capital markets (with fixed costs): o Regulation: compliance with Prospectus directive, MiFID, MAR, TD, etc.
o General costs: auditors, corporate advisors, lawyers and listing fees
o Risks: loss of control and disclosure of information at the benefit of competitors
Often private limited companies not allowed under national law to offer their participations (or even debt instruments) to the public (see the s.a.r.l. in Luxembourg) but more recently exceptions (see mini-bond; equity-crowdfunding)
In general, SMEs are opaque and riskier (rare market test, non standardization or harmonization of performance and other financial data, illiquidity), especially start-up o only business angels, private equity and venture capital funds are
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E) SMES AND ACCESS TO FINANCE
4. Alternative forms of finance - Crowdfunding/1
1) CROWDFUNDING Types: rewards, donations, equity
and lending (recently also invoice trading)
Characteristics: digital, disintermediation, collaborative finance, low-cost
o Most problematic: financial-return crowdfunding (lending-based and equity based crowdfunding)
o Evolving and varied: in lending, P2C, P2B, B2B (B2C), invoice trading; in equity, VC/ equity clubs platforms
Different business models (restricted vs open access, marketplace vs intermediation, guaranteed vs unsecured, etc.)
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11821145
318
8
422366
212159
11 0.54
80.59
0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
(fig. 1) FR-CROWDFUNDING 2015 EU
MARKET (million)
UK EU (UK excluded)
(Figure from Macchiavello, Financial-return crowdfunding,
forthcoming; data extracted from Zhang et al., Sustaining
Momentum, (2016) and Zhang et al., Pushing Boundaries, (2016))
Benefits
23
RisksFor investors:
Higher returns
Diversification across types of
investments and resilience
Non-financial returns:
direct finance, sense of
involvement, expanded
network
For receivers:
> access to finance
< transaction costs
Market test/marketing tool
For the system:
Increased competition in
financing
Innovation stimulator
For investors:
Capital loss and coordination problem
Illiquidity and concentration
Lack of clarity, misleading
advertisements, asymmetric
information
For receivers:
Disclosure of corporate
information/unprotected innovative
processes
Agency costs, collective action problem
borrowers discrimination and abuses (LB)
For the system:
Fraud, money-laundering, financing
terrorism, cyber-crimes
Very low systemic risk (but now >
interconnectedness)
E) SMES AND ACCESS TO FINANCE
5. Alternative forms of finance - Crowdfunding/2
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FR-CROWDFUNDING
E) SMES AND ACCESS TO FINANCE
6. Alternative forms of finance - Crowdfunding/4
Different regulations/approaches in MSs: possible violation of
banking or investment firms monopoly by recipients or platforms
(risky choice for a firm!) or application of burdensome regulation
o Regulatory trends: lending platforms as Payment Institutions (EBA;
Italy) and equity platforms as brokers (light regulation, MiFID
exempted: see Germany) but risks not always covered!
therefore, in many countries special regulations focused on
disclosure, warnings and investment limits (in particular, to protect
investors; e.g. France, Spain, Portugal, UK) or adaptations of existing
legal framework (e.g. Germany, Netherlands, Austria)
In any case, obstacles to cross-border operations as regards
funding and recipients (no passport when special regulation and
different qualiXications) FR-crowdfunding not available to all firms
in Europe and with very different requirements!
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2) MICROCREDIT in the European Union Loan < 25.000, to micro-enterprises (< 10 employees and turnover <
2M): Art. 2(3) Recommendation No. 2003/361/EC)
[targeting] micro-entrepreneurs, the self-employed and socially excluded people lacking access to traditional sources of capital; [having as object] the creation or expansion of income-generating and job-creating activities or micro-enterprises, whose principal need is usually the financing of initial investment or of the working capital; the small amount of the individual loans required which in turn relates to the limited debt servicing capacity of the target clientele; [] a more labour-intensivedelivery system for making loans, involving greater knowledge of borrower capacity and a close relationship with the borrower, especially during the start-up phase of the micro-enterprise, through mentoring and general business support (Communication COM/2007/708)
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E) SMES AND ACCESS TO FINANCE
7. Alternative forms of finance - Microcredit/1
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But no harmonization in the lending sector
different approaches in MSs (violation of banking
monopoly vs freedom; higher vs lower usury ceilings) and
only few special regulations targeting microcredit (France,
Italy, Hungary)
Xirms might face obstacles/different requirements in
MSs as regards:
o Loan amount (12.000 in France; 25.000 in Italy)
o Characteristics of eligible firms (no > 3-years firms in France; 7-
years in Italy)
o Borrower protection (disclosure, interest rate limits; consumer
credit regime extended to microenterprises in UK and France)
o Coaching services
o Credit bureau accessibility and data included (see above) 26
E) SMES AND ACCESS TO FINANCE
8. Alternative forms of finance - Microcredit/2
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EU Parliament in 2007 hoped in a European regime for MFIs (harmonization plus exceptions to competition law, AML/CT)
However, the Commission only recommended to MSso the creation of a favourable regulatory and institutional framework
for microcredit (eg easier authorization, processes, guarantee facilities, securitization systems, more flexible usury laws for MFIs, tax breaks, access to credit bureaux and the creation of a European database about defaults, loan losses and ratings).
o to apply prudential regulation and supervision only in the case of deposit mobilization
o And promoted the European Code of Good Conduct for Microcredit Provision (private regulation backed by Commissions checks for funding)
Commissions communication: a European initiative for the development of micro-credits in support of growth and employment, [2010]OJC117E/85 o financial and technical support also to microfinance providers
(2007-2020 JASMINE; 2010-2016 Progress; now 2014/2020 EaSI) 27
E) SMES AND ACCESS TO FINANCE
9. Alternative forms of finance - Microcredit/3
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An action plan to improve
access to finance for SMEs
(COM(2011) 0870)
o 20072013 CIP; 2007-2013
JEREMIE; 2014/2020 EaSI
o EIC SME instrument
(Horizon 2020)
o COSME 2014/2020
o European Structural and
Investment Funds managed
through national and
regional authorities
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E) SMES AND ACCESS TO FINANCE
10. EU programs to support SMEs access to finance
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EIB/EIF
approach
1) Capital Markets Uniona) Alternative markets for SMEs (equity and debt):
o SME growth markets in MiFID II (from 2018) with lower admission costs, more flexible listing criteria and less stringent disclosure requirements but investor education
Inspired to MTFs in some MSs with lower requirements (seeAlternative Investment Market AIM- by LSE; Alternext in Brussels, Paris, Lisbon; other in Nordic countries and Germany; for minibondExtraMOT Pro in Italy)
at least 50% of issuers admitted to trading must be SMEs (average market capitalization of less than 200 million for the three previous years);
ESMA/Commissions guidelines: no obligation to use IFRS (national laws), no greater burden than RM, prospectus or appropriate admission document under responsibility and reviewed for completeness, consistency and comprehensibility and information for informed decision by SME growth markets; but now MAR (insiders list to fulfill requests by authorities so burden, requiring costly legal advice and risk of 2% annual turnover as sanction; supervision by NCAs)?
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E) SMES AND ACCESS TO FINANCE
11. Initiatives and reforms in the mainstream sector to
improve SMEs access to finance/1
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b) Prospectus regulation No. 2017/1129:
o exemption when offering consideration
2) SME supporting factor under Basel/CRD IV/CRRo deduction of 0.7691 on the capital requirement for exposures to
SMEs < 1.5 million (art. 501 CRR)
3) Information sharing about SMEs: o UK 2015 Small Business, Enterprise and Employment Bill:
designated banks must share information about SMEs with certain credit references agencies (CRAs) and other lenders upon request; moreover, when a designated bank rejects a loan request, it refers the applicant to designated online platforms, sharing the data, and this platform will refer the applicant to alternative providers (Bank Referral Scheme)
o PSD 2 (Directive No. 2015/2366): right to access by payment initiation services (PIS) and account information services (AIS) providers (subject to light regulation) to banks data and infrastructure at the benefit of clients
o data portability under Data protection regulation 679/2016 (duty to transfer all data about a borrower, collected through long, complex and expensive processes upon request) 31
E) SMES AND ACCESS TO FINANCE
13. Initiatives and reforms in the mainstream sector to
improve SMEs access to finance/3
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A) About European legal forms:
o European Commission, Commission staff working document -
Impact assessment Accompanying the document Proposal for a
Directive of the European Parliament and of the Council on single-
member private limited liability companies, (9 April 2014),
SWD(2014) 124 final
o Conac, P., The Societas Unius Personae (SUP): A Passport for Job
Creation and Growth, ECFR 2015, 2, 139
o Report of the Reflection Group On the Future of EU Company Law
(Brussels, 2011)
o Davies, P., The European Private Company (SPE): Uniformity,
Flexibility, Competition and the Persistence of National Laws (2010),
Oxford Legal Studies Research Paper No. 11/2011 - ECGI - Law
Working Paper No. 154/2010, available at
https://ssrn.com/abstract=1622293
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F) SUGGESTIONS FOR FURTHER READING/1
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B) About social enterprises:
o Cafaggi, F. and P. Iamiceli, New Frontiers in the Legal Structure and
Legislation of Social Enterprises in Europe: A Comparative Analysis, EUI
Working Papers LAW 2008/16, http://ssrn.com/abstract=1303407
o Esposito, R., The Social Enterprise Revolution in Corporate Law: A Primer on
Emerging Corporate Entities in Europe and the United States and the Case
for the Benefit Corporation, 4 Wm. & Mary Bus. L. Rev. 639 (2013),
http://scholarship.law.wm.edu/wmblr/vol4/iss2/7
o European Commission, A map of social enterprises and their eco-systems in
Europe - Synthesis Report, (Brussels, 2015)
o Fici, A., Recognition and Legal Forms of Social Enterprise in Europe: A
Critical Analysis from a Comparative Law Perspective, in European Business
Law Review 2016, 27, 5, 639
o Fici, A., A European Statute for Social and Solidarity-Based Enterprise,
(February 1, 2017), Policy Department C: Citizens' Rights and
Constitutional Affairs, European Union, 2017,
https://ssrn.com/abstract=2925325
o Hansmann, H., Ownership and Organizational Form, in R. Gibbons and J.
Roberts (eds.), The Handbook of Organizational Economics, (PUP 2012)
o Hansmann, H., The Role of Non Profit Enterprise (1980) 89Yale L.J. 835 33
F) SUGGESTIONS FOR FURTHER READING/2
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C) About SMEs financing obstacleso Artola, C., and V. Genre, Euro area SMEs under financial constraints: Belief or reality?,
(2011) CESifo Working Paper No. 3650, Munich, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1966955
o Banerjee, R. , SMEs, financial constraints and growth, (2014) BIS Working Papers No 475, December, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2542219
o European Commission, Action Plan on Building a Capital Markets Union, COM(2015) 468 final, (September 2015)
o European Commission, Economic Analysis Accompanying the document Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the Mid-Term Review of the Capital Markets Union Action Plan, SWD(2017) 224 final, (Brussels, 8 June 2017)
o European Parliament, Resolution of 15 September 2016 on access to finance for SMEs and increasing the diversity of SME funding in a Capital Markets Union (2016/2032(INI))
o Macchiavello, E., Microfinance and Financial inclusion. The Challenge of Regulating Alternative Forms of Finance, (Routledge, London, 2017)
o Macchiavello, E., Financial-return crowdfunding and regulatory approaches in the shadow banking, Fintech and collaborative finance era, forthcoming in ECFR and on SSRN
o Masiak, C., Moritz, A., & Lange, D., Financing Patterns of European SMEs Revisited: An Updated Empirical Taxonomy and Determinants of SME Financing Clusters, (2017) EIF WP 2017/40, http://www.eif.org/news_centre/publications/eif_wp_40.pdf
o Schammo, P., Market Building and the Capital Markets Union: Addressing Information Barriers in the SME Funding Market, 2 ECFR (2017) 271
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F) SUGGESTIONS FOR FURTHER READING/3
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Thank you!
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