Investment in SMEs across G20 just US$714 billion of total US$11.507
trillion for all forms of investment
TORONTO, June 18, 2012 /CNW/ - Despite being key engines of economic
growth — accounting for 50% of employment in most G20 countries — small
to medium-sized enterprises (SMEs) only attract a tiny proportion of
overall investment, according to Ernst & Young's new report Funding the future.
Despite intervention by a number of G20 governments, bank lending
remains difficult to obtain, particularly in the early stages of
growth. And total investment in SMEs across the G20 stands at just
US$714 billion, 6% of the total US$11.507 trillion for all forms of
"Access to funding continues to be one of the most significant
challenges for the creation, growth and survival of SMEs, particularly
innovative ones," says Colleen McMorrow, Ernst & Young's
Entrepreneurial Services Leader in Canada. "In our survey of more than
1,000 entrepreneurs across the G20, almost two-thirds found access to
finance difficult in their country."
According to the report, SMEs at every stage of growth can take
improving access to capital into their own hands by considering the
Pre-seed and seed stage: Manage cash carefully to minimize need for external finance in the early
stages, and assess whether innovative funding models are right for your
Startup stage: Explore options for managing working capital, such as invoice finance,
and tap into networks of angel investors
Emerging growth stage: Have a credible plan to take to banks, seek out specialist or community
banks that may have a stronger link with your business, and explore the
potential for corporate venturing.
Expansion stage: Use junior stock markets as a source of funding, open up to
international markets as opportunities arise, and explore private
"Creating a vibrant entrepreneurial environment requires action on many
fronts, both on the side of the entrepreneur and their government. Each
stakeholder must play their part to ensure that funding is available at
every stage of business development," says McMorrow. "Because without
the ability to secure funding, entrepreneurial companies will be unable
to reach their growth potential and may not survive at all."
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