Facilitating Capital Raising in the EU: Analysing the Reformed Prospectus Regime

The importance of SMEs for the European Market The concept of small and medium-sized enterprises (SMEs) has long been included in the European Union's lexicon. The importance of SMEs for the European Market is irrefutable. According to data from the EUROSTAT quoted by the European Economic and Social Committee, 99.8% of European businesses are SMEs, 92% of which are microenterprises with an average of two employees. The Committee points out that microenterprises export to a small number of Member States after analysing the market in depth, that the standard business model of a microenterprise does not aim to conclude cross-border contracts in 27 Member States, and that there are major barriers to cross-border transactions by SMEs. SMEs and transaction costs The Proposal for a Regulation of the European Parliament and of the Council on a Common European Sales Law (the Proposal) pays special attention to SMEs, namely in its Explanatory Memorandum, where it acknowledges that ‘the costs resulting from dealings with various national laws are burdensome particularly for SMEs. In their relations with larger companies, SMEs generally have to agree to apply the law of their business partner and bear the costs of finding out about the content of the foreign law applicable to the contract and of complying with it. In contracts between SMEs, the need to negotiate the applicable law is a significant obstacle to cross-border trade. For both types of contracts (business-to-business and business-to-consumer) for SMEs, these additional transaction costs may even be disproportionate to the value of the transaction’. According to the second recital of the Proposal, the deterrent effect of contract-law-related barriers ‘is particularly strong for small and medium-sized enterprises (SME) for which the costs of entering multiple foreign markets are often particularly high in relation to their turnover. As a consequence, traders miss out on cost savings they could achieve if it were possible to market goods and services on the basis of one uniform contract law for all their cross-border transactions and, in the online environment, one single web-site’. Finally, recital 7 states that ‘the barriers to cross-border trade may jeopardise competition between SME and larger companies. In view of the significant impact of the transaction costs in relation to turnover, an SME is much more likely to refrain from entering a foreign market than a larger competitor’.

Numerous studies in the world of market economy show that the share of small and medium size enterprises is constantly increasing compared to large enterprises. This does not decrease the significance of large enterprises, but the dependence between them gets larger every day. National economies which manage to find the optimal combination between small, medium size and large enterprises are more successful than the others. Management of small and medium size enterprises (SMEs) in conceptual terms is similar to the process of management of large enterprises. An organization must be managed in order to function and this rule applies to small and medium size enterprises.

Involvement and development of the private sector in boosting the economy nationwide is a main objective of the current program of the government, which means that a good cooperation between small and medium companies, private companies and multinationals and public environment including both public institutions and policies implemented and developed by them, becomes more than necessary. The paper summarizes the findings of a quantitative research based on a self-applied questionnaire which was aimed at Romanian small and medium-sized enterprises and also of a qualitative research that gives an overview of the process of elaborating and implementing a public policy. The involvement of small and medium-sized enterprises in the process of designing and implementing a public policy can become indispensable but it is well know that there is, in fact, a lack of initiative at this level, from both parties. One of the main research questions of this paper is to find out how much do representatives of small and medium-sized enterprises get involved in the process of elaborating a public policy and how much do these actions and measures impact the organizational policies of the companies themselves. A good cooperation between the business environment and the public institutions and a strong correlation of their joint efforts, should become a common practice between both parties, being crucial that this form of cooperation to be initiated from the very beginning. The contribution of this paper is a practical one, given the fact that the paper itself entails the direct responses of small and medium-sized enterprises on the current and future public policies that directly targets them, providing as well an analysis on the effects of public policies on small and medium-sized enterprises. Thus being said, the paper can also be a guide for both small and medium-sized enterprises in providing examples and measures of involvement and favorable public policies development, but also for public institutions by analyzing responses based on practice activities of small and medium-sized enterprises; giving them a solution to correct or continue generating positive results of those policies.

Purpose – The basic purpose of this paper is to analyze the debt financing of small and medium-sized enterprises (SMEs) in Pakistan through different modes from conventional and non-conventional (Islamic) institutes.
 Design/Methodology/Approach – Data is publicly available on databases and websites about debt financing of small and medium-sized enterprises (SMEs) of Pakistan, thus data is collected from these databases and websites in the form of articles and handbooks about Pakistan.
 Findings – It is found from the analysis that a lot of financing choices and modes are available for small and medium-sized enterprises (SMEs) in Pakistan. These modes are provided by both conventional and non-conventional (Islamic) financial institutes. All the debt modes are discussed in the paper. In addition, there are some drawbacks of debt financing that arises from conventional and non-conventional (Islamic) financial institutes, which alleviate small and medium-sized enterprises (SMEs) from adopting these modes
 Research Limitations/Implications – Some financial institutes, especially banks, lack knowledge and information about small and medium-sized enterprises (SMEs) in Pakistan. Banks could lessen it by acting as a mediator for small and medium-sized enterprises (SMEs).
 Originality/Value – This review paper's main contribution is to analyze the contribution of financial institutes in debt financing small and medium-sized enterprises (SMEs) in Pakistan. Paper discusses all the modes available for the small and medium-sized enterprises (SMEs) in Pakistan thoroughly through conventional and non-conventional (Islamic) financial institutes.

The establishment of Hainan Free Trade Port provides a new opportunity for the financing of small and medium-sized enterprises. In the process of the country continuously promoting the development of a free trade port, the financing environment of small and medium-sized enterprises has gradually improved, and the financing environment has been greatly improved. But the small and medium-sized enterprises “financing difficult” “financing expensive” problem still exists. The problems of difficult and expensive financing of small and medium-sized enterprises in Haikou city have their reasons as well as the influence of external environmental factors. Therefore, to better solve the financing problems of small and medium-sized enterprises in Haikou, this paper analyzes the reasons for the difficulty and expensive financing of small and medium-sized enterprises according to the existing research results and summarizes the financing experience of small and medium-sized enterprises at home and abroad. This article finds that the financing systems for small and medium-sized enterprises (SMEs) in developed countries are relatively well-established, and both the government and society offer significant support to SMEs. Therefore, this paper believes that the government should adjust the business strategy to improve the financing ecological environment and enhance the financing ability of SMEs. The government should take the lead in perfecting the guarantee system, continuously improving the credit information system of enterprises and various financial service institutions, promoting the opening and institutionalization of private credit, and developing Internet finance.

This paper presents an abstract of the final phase of an on-going research project aiming at investigating the antecedents and consequences of research and innovating within Lebanese small and medium-sized enterprises (SMEs). The role of training personnel and introducing supporting activities in moderating the relationship between R & D and introducing knowledge management systems within Lebanese small- medium –sized innovation in Lebanon still suffer from funding shortages, short of IT personnel training and lack of the ability to adequately use existing knowledge. Ashrafi, and Murtaza suggest that “Large organizations have enough resources to adopt ICT while on the other hand SMEs have limited financial and human resources to adopt ICT” (Ashrafi and Murtaza, 2008 P. 126). Even though, Lebanese government is trying to create a digital economy, Lebanon ranked 94th out of 144 countries on the Network Readiness Index in 2012 and “In the Arab world, Lebanon ranked in 10th position, right behind Morocco (89t...

The concept of national and regional development strategies for small and medium-sized enterprises (SMEs) are studied for a long time, as small and medium businesses are the foundation of the economy and the basis for effective country functioning. The business development program of the European Union countries is particularly interesting because there are several levels that correspond to each other and give full effect on the SMEs development. The EU standards are higher than in non-EU countries; therefore, it is worth considering legislative documents, as well as statistics showing the indicators of openness and access to the development of small and medium-sized enterprises (SMEs). The complexity and comparative novelty of studying such a problem in Ukraine led to the need to explore sources of information in the original language due to the lack of information in Ukrainian or Russian. All these suggest that the problem of creating strategies at the national and regional level is more relevant and important to study in the West that demonstrates the current state. The subject of the study is to analyse the effectiveness of implementing strategies for the development of small and medium-sized enterprises as well as the impact of national and regional policies on their functioning and development in the European Union countries. Methodology. The authors highlighted the peculiarities and main features of the development strategies implementation for small and medium-sized enterprises in the EU countries through a comparative analysis of the legislative framework, statistical and other data that help assess the performance and effectiveness of the implemented strategies. The content analysis helps to identify peculiarities of the implemented strategies in quantitative and qualitative forms. The thorough analysis using the above-mentioned methods allowed doing a qualitative study of national and regional strategies in the context of the development of small and medium-sized businesses in the EU countries. Practical importance is that the results of this study will lead to a wider acquaintance with progressive strategic methods of management of small and medium-sized enterprises. This will enable the plan development of concrete actions to improve the efficiency of enterprise management in less developed countries. In turn, raising awareness on this issue will reduce the number of inefficient and non-innovative enterprises. Scientific novelty of the article is to determine the theoretical basis of the differences that at the current development stage are increasingly manifested as certain contradictions in the compilation and improvement of small and medium-sized enterprises, development of strategies at the national and regional levels. Small and medium-sized enterprises, in their turn, have a wider access to their development. Conclusions. As a result of the main development strategies of small and medium-sized enterprises of the EU countries, there should be identified the differences and common features of different strategies for innovations of small and medium-sized enterprises. The interaction of the national and regional strategy with actual results and existing strategies is explored.

Sustainable supplier selection for SMEs based on an extended PROMETHEE Ⅱ approach

Expanding Partnerships for Small‐ and Medium‐Sized Enterprises (SMEs) Needed: The Right Kind of Support

In the past decade, market globalization has not only been a threat for small and medium-sized enterprises (SMEs), but also an opportunity to expand their activities in many countries (Murphy and al., 1991). In fact, some of SMEs are worldwide leaders in their sectors (Simon, 1990; Entreprise, 1995). Moreover, few of these worldwide SME leaders started businesses directly on an international level (Christensen, 1991; Brush, 1992; McDougall and al., 1994). This suggests that these SMEs use many processes to overcome resource and competency constraints, which would otherwise impede the success of a transnational business in the new global environment (Barlett and Ghoshal, 1987; Fombrun and Wally, 1992). Some studies have identified co-operation as one of the most powerful means an SME operating across borders can use to overcome its constraints (Olleros and Macdonald, 1988; McDougall and al., 1994; Scully and Fawcett, 1994). To face the complexity, diversity, dynamism and change characterizing the global market, SMEs need to form strong and sustainable ties with other organizations (Forrest, 1990; Harry, 1990). These ties can be made with big, medium-sized or other small enterprises (Shutt and Whittington, 1987; Lorenzoni and Ornati, 1988; Stevens, 1992; Darréon and Faiçal, 1993; Fernandez and Noël, 1994). The balance of power between partners is very important in this kind of inter-firm relationship. SMEs have fewer resources than their partners, and yet their owner-managers prefer autonomy. Then, how do SMEs reconcile the apparent contradictory necessity to cooperate due to resource constraints with their desire for autonomy? What is the ideal quantity of activities that can be devoted to the partnership without threatening the organization itself? The purpose of this paper is to examine propensity of transnational SMEs to subcontract, to outsource (prime contract) or to collaborate on an equivalent basis with other businesses. It is important therefore, to first review the literature related to small business networking. Second, a summary of the methodology and results will follow. Third, propositions will be stated followed by conclusions.

<p class="AbstractText">Micro, small and medium-sized enterprises (SMEs) are considered to be the engine of the European economy. In EU SMEs make up more than 99% of all companies and provide around 75 million jobs. They are a key source of job creation and stimulation of entrepreneurial spirit and innovation and are therefore essential for fostering competitiveness and maintaining employment in the EU. Yet SMEs often have problems in raising funds to finance fixed investments and inventory and working capital. SMEs mostly use internal sources while the most important external sources of SMEs are bank loans, which are not easily accessible. Hence, one of the priorities of the European Commission is stimulating SMEs through EU funds and programs in order to enable SMEs development and finally to contribute to economic growth. SMEs sector also dominates the economic structure of Croatian economy and they have similar financing problems. However, Croatia in period 2014 – 2020 have at disposal a total amount of 10.676 billion of euros from European structural and investment funds, of which 8.397 billion are aimed for cohesion policy objectives and 470 million euros are aimed for the development and competitiveness of SMEs. Besides, EU programs COSME and HORIZON 2020 are intended to provide direct support to SMEs and to create a favorable environment for their development. However, even though the number of successful project applications for small and medium-sized enterprises in the total share of Croatian project applications is relatively high, fund absorption has not reached satisfactory levels. Using the sample of Split-Dalmatia County’s SMEs, this study finds out reasons for low absorption capacity from SMEs point of view: SMEs are interested in funds from European Union, but are not sufficiently familiar with their availability i.e. funds at their disposal, especially programs COSME and HORIZON 2020; SMEs state that they know how to apply for EU funds but considered the procedure as complicated and demanding regarding documentation, and that the needed knowledge and know-how for proposal is beyond their scope; SMEs are not satisfied with the cooperation with state institutions, especially Ministry of Regional Development and EU funds and Croatian Chamber of Economy. We point out four main conclusions: (1) SMEs are not enough aware of EU financing possibilities; (2) additional promotion of EU programs directly to SMEs is required; (3) additional education of SMEs regarding project proposal and documentation is needed and (4) more proactive policy of state institutions and cooperation with local authorities is expected. Finally, greater awareness and professional help might be a key in strengthening the SMEs, whose entrepreneurial spirit and innovation process is a prerequisite for economic growth and development.</p>

The aim of this study was to make a critical assessment of the extent of the management accounting practices (MAPs) in small and medium-sized enterprises (SMEs) in Newcastle, KwaZulu-Natal. The objectives of the study were to determine the extent to which MAPs are employed by Newcastle clothing/textile SMEs, to identify the roles played by MAPs in Newcastle clothing/textile SMEs management, to determine the factors that affect the extent of use of MAPs amongst Newcastle clothing/textile SMEs and to consider the role of MAPs in the performance of the SME. The motivation for the study was driven by the lack of research on the extent of use of MAPs by clothing/textile SMEs in South Africa. The forms of MAPs investigated in this study were the costing systems, the budgeting systems, the performance management tools, the decision support systems, and strategic management accounting. These MAPs are thought to be necessary for the survival and success of SMEs in the modern enterprise environment. This is a quantitative descriptive survey of 51 clothing/textile manufacturing SMEs in Newcastle, KwaZulu-Natal using a self-administered questionnaire. The results of this study indicate that budgeting systems were the most used MAPs by Newcastle clothing/textile SMEs and that the strategic management accounting (SMA) and performance measurements tools (PMTs) were the least used of the MAPs surveyed. Newcastle clothing/textile SMEs use traditional MAPs; however, they are endeavouring to integrate the modern or newly-developed MAPs such as the use of the decision support systems into their enterprises’ administration. The results indicated that the most valued role of MAPs was for planning future strategies, tactics and operations. On the other hand, certain roles of MAPs were considered not to be beneficial to Newcastle clothing/textile SMEs. Factors that affected the use the MAPs were the high cost to implement MAPs, the complexity of newly-developed or modern MAPs, that the benefits of the MAPs were too difficult to observe, and the lack of information on affordable accounting services. In respect to the performance of the Newcastle SMEs, the results indicated that the MAPs assessed had a moderate influence on the performance of SMEs. The study recommends that SMEs are apprised of the significance of MAPs. SMEs should liaise with academics, government, and professionals in the commerce field, amongst other initiatives, to implement and monitor their skills development for the success and survival of SMEs in the clothing/textile industry.

The article highlights current issues regarding the potential of small and medium-sized enterprises (SMEs), which is an important factor in the economic development of any country. The innovative potential of the enterprise is the ability of the organization to generate new ideas and implement them in its activities. This is a complex indicator that includes various aspects that affect a company's ability to be innovative. The study provides key aspects that determine the innovative potential of SMEs, namely: economic growth - SMEs contribute to the creation of new jobs and ensure the flexibility of the economy, as they quickly respond to market changes; innovation – small and medium-sized enterprises are often the source of new ideas and technologies, as they have lower bureaucratic barriers and more flexible structures; competition - SMEs contribute to increasing the level of competition in the market, which stimulates large companies to increase efficiency and improve the quality of products and services; social aspect – small and medium-sized enterprises are often the basis for the development of local communities, providing jobs and supporting the local economy; globalization – SMEs can successfully enter international markets, contributing to the country's export potential. Key challenges for SMEs include access to finance, regulatory barriers, shortages of skilled workers and the need to adapt to technological change. Support from the state, business incubators and other organizations can significantly improve the conditions for the development of small and medium-sized enterprises. An up-to-date analysis of small and medium-sized enterprises was carried out and the corresponding steps for creating an effective innovation potential of small and medium-sized enterprises were provided. The key elements of innovation potential are presented, namely: resource base, organizational structure and culture, research and development (R&D), information support, patent and licensing activities, innovation marketing, innovation management. Innovative potential is a key factor for ensuring long-term competitiveness and success of the enterprise on the market. It allows the company not only to respond to changes in the external environment, but also to actively form new market opportunities.

Recent interest among both SME operators and academics/professionals in determining what factors influence the capital structure and performance of SMEs has increased. Possible cause includes increased focus on the role that small and medium-sized enterprises (SMEs) play in driving economic growth. This research evaluated the factors that influence small and medium-sized enterprises' capital structures, as well as their performance predictors, financial accessibility factors, firm characteristics that predict their capital structures, and the impact of capital structure on SMEs' profitability. It was decided to conduct a survey study, with the help of a properly designed questionnaire. The population included both small and medium-sized enterprise (SME) owners and operators in the study area (South-West, Nigeria). Four hundred small and medium-sized enterprises (SMEs) purposefully chosen using purposive and proportionate procedure from each state in the region and asked to fill out an online questionnaire (Google Form) to collect the data. This study found a significant relationship between capital structure and the performance of small and medium-sized enterprises (SMEs) in Nigeria's Southwest region. Formal strategic plans, consistent operational procedures, positive work relationships, and the presence of formal business plans were found to have a significant impact on the financial decisions of SMEs, thereby improving overall business performance. Furthermore, the factors influencing SMEs' capital structure decisions include both strategic and organisational components, emphasising the importance of formal strategic planning, consistent operational procedures, positive work relationships, and formal business plans.

This study investigates the influence of digital marketing on small and medium enterprises (SMEs) in Bangladesh. It examines how these businesses utilize digital tools to improve their operations, interact with customers, and stimulate growth. Data was gathered from small and medium-sized enterprise (SME) owners and marketers using a qualitative study method. This methodology allowed for a deeper understanding of the adoption, advantages, difficulties, and overall consequences of digital marketing in the specific context of Bangladesh. The results indicate that small and medium-sized enterprises (SMEs) have widely embraced digital marketing tools, with social media platforms being the most commonly used method for engaging with customers and promoting their brand. Although SMEs encounter obstacles such as limited knowledge of digital technology, budgetary limitations, and technological hurdles, they acknowledge the significance of digital marketing in maintaining competitiveness and extending their market presence. The primary advantages of digital marketing for small and medium-sized enterprises (SMEs) in Bangladesh are expanded market coverage, enhanced customer interaction, cost efficiency, heightened brand exposure, and the ability to assess performance in real-time. Nevertheless, the need of providing customized assistance and resources to small and medium-sized enterprises (SMEs) in order to fully exploit the possibilities of digital marketing is emphasized by obstacles such as the requirement for ongoing learning and adjustment, financial limitations, and worries around cybersecurity. The report also emphasizes the crucial function of digital marketing in promoting business expansion and cultivating innovation among small and medium-sized enterprises (SMEs). Digital marketing offers SMEs unparalleled potential to succeed in a digital market by expanding into new areas, gaining vital consumer insights, increasing sales conversion rates, and improving brand awareness. Ultimately, governments, industry stakeholders, and support organizations have a crucial responsibility in creating a favorable atmosphere for small and medium-sized enterprises (SMEs) to successfully embrace and utilize digital marketing. Efforts focused on boosting digital literacy, increasing access to technology and resources, and promoting a culture of innovation and adaptability can allow small and medium-sized enterprises (SMEs) to effectively traverse the hurdles and take advantage of the opportunities offered by digital marketing.