Small and medium enterprises study for Armenia, Romania and Serbia
The EFSE Development Facility commissioned Frankfurt-based, IPC Internationale Projekt Consult GmbH to conduct a short-focused study on the supply and demand for small enterprise (SE) finance in Romania, Serbia and Armenia. The aim was to gain insight into the current challenges and opportunities for SE finance and its evolution since the beginning of the global financial crisis. The consultants based their analysis on qualitative interviews conducted with 56 SEs (most of them long-term clients of EFSE partner lending institutions), staff and representatives of 14 financial institutions (FIs) and 12 other stakeholders in SE finance, such as representatives of central banks and local business associations.
The outcome of the study, although limited in scope and centred mainly on qualitative interviews with stakeholders, clearly shows a disconnect between the current supply of financial services for SEs and the financial service needs of SEs. In addition to other factors determining finance options and their uptake by SEs, mutual (mis)perceptions seem to play a role. The assessment shows that it makes sense to have a direct dialogue with SEs and to ‘take their pulse’ from time to time. A better understanding of the views and needs of SEs may serve to enhance the products and services on offer. This holds true for local financial institutions as well as for international financial institutions and other stakeholders that are able to influence the supply of financial services to SEs.
For more details on the findings, please refer to ‘Executive summary: The current state of small enterprise finance.
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