Financial Instruments to facilitate access to finance of SMEs. The Greek experience. Findings, conclusions, suggestions

Abstract

Access to finance is the most important problem faced by Greek SMEs during the financial crisis. In international organizations such as the Organization for Economic Cooperation and Development and the European Union the use of financial instruments complementary to traditional grants has been promoted in order to facilitate the access to finance for small and medium sized enterprises. With the adoption of financial instruments the State undertakes an important part of the risk related to an investment in order to support projects which private investors avoid to support under strict private economic criteria. In Greece financial instruments have been developed through expertise institutions which belong to the public sector in cooperation with interested financial institutions to co-invest for the creation of funds for small and medium sized enterprises. Further promotion of the use of financial instruments for the benefit of Greek small and medium sized enterprises should take into account the specific needs of each enterprise according to its stage of development. On the other hand it requires a total change of political and economic scheduling towards the enhancement of the productive base relying to innovative and extrovert entrepreneurship as a key lever to support sustainable development in the long term