Abstract
Many SMEs suffer from financing problems that hinder their growth. To overcome these difficulties, some list on the stock market and make a public offering. Does this favor the SMEs’ growth? And what types of growth do SMEs prefer in this context? The empirical study shows an overall positive development of turnover, especially internationally. SMEs seem to focus on external growth at the expense of internal growth and short-term investment in R&D.
Highlights
The presence of SMEs in the stock market is quite rare
To recall, is to study the impact of stock exchange listing on the SME growth and the strategic choices related to it
We wished to study, on the one hand, the impact of stock exchange listing on the SME growth and to analyze, on the other hand, the growth patterns that SMEs favor in the context of listing
Summary
The presence of SMEs in the stock market is quite rare. Yet listing generates a spiral of growth. The most successful of them outperform unlisted firms in terms of profitability and growth rate (Bank of France, 2010). This leads to strong interest from the political powers. This is especially true as SMEs constitute 99% of the economic fabric, create more than 60% of jobs and participate in more than 55% of GDP (Ministry of Economy, Finance and Employment, 2008). This means that issues of SME funding and growth are crucial. According to the pecking order theory or the model of the life cycle, the IPO remains the last resort of SMEs, after self-financing and bank debt
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