Financing SMEs and Entrepreneur - OECD

Foreword
Acknowledgements
	Country expert team
Table of Contents
Acronyms and abbreviations
Chapter 1. 
Financing SMEs and Entrepreneurs: Understanding and Developing an OECD Scoreboard
	Introduction
	Indicators
		Table 1.1. Core indicators of the OECD Scoreboard on SME and entrepreneurship finance
	Data collection
	Cross-country comparability
	Definition of indicators and data collection: Current challenges and recommendations
		SME population covered
		SME loan data: definitions and contents
		Data on government loan guarantees
		Venture capital data
		Demand-side data collection
	Recommendations for data improvements
Chapter 2. 
Emerging Trends in SME and Entrepreneurship Finance
	Introduction
		Box 2.1. ECB/EC Survey on SME access to finance
	Business environment and economic prospects
		Table 2.1. Bankruptcies, 2007-10
	Lending to SMEs in 2007-10
		Table 2.2. Growth of SME business loans, 2008-10
		Table 2.3. SME loan share of total business loans, 2007-10
		Short-term loans vs. loans for investment
			Table 2.4. Share of short-term SME loans, 2007-10
		SME credit conditions compared to larger enterprises
		Demand vs. supply of financing
			Table 2.5. European Central Bank/European Commission survey on SME access to finance
	Equity financing
	Government responses
		Table 2.6. Government policy responses to improve SME access to finance during the 2008-09 crisis
	Notes
	References
Chapter 3. 
Basel III and SME Lending: Thematic Focus
	Introduction
	Background on Basel III capital and liquidity standards
	The basics of Basel II and III
		Capital adequacy ratio
			Table 3.1. Minimum capital adequacy ratios
		Liquidity management rules
		The leverage ratio
	Potential impact on SME lending
		Figure 3.1. Sources of SME external finance, 2010
		Impact of the risk weighting system
			Box 3.1. Credit risk mitigation
			Figure 3.2. Bank adjustments implemented to meet Basel III: Capital position, 2011
			Figure 3.3. Bank adjustments implemented to meet Basel III: Risk-weighted assets, 2011
		Impact of the liquidity coverage ratio
		The debate at the national level: perspectives from countries in the OECD Scoreboard on SME and entrepreneurship finance
			Box 3.2. The impact of Basel III in Denmark
	Notes
	References
Chapter 4.
 Country Profiles of SME Financing 2007-10
	Canada
		Small business lending
			Table 4.1. Distribution of establishments in Canada, 2010
			Figure 4.1. Debt financing by source of funding, 2010
			Figure 4.2. Business debt outstanding in Canada, 2000-10
		Small business loans authorised vs. requested
		Small business credit conditions
		Equity financing
			Table 4.2. Venture and growth capital in Canada, 2007-10
		Business insolvencies
		Government policy response
			Box 4.1. Definition of small businesses used in Canada’s SME and entrepreneurship finance Scoreboard
			Table 4.3. Financing SMEs and entrepreneurs: Scoreboard for Canada, 2007-10
			Figure 4.3. Trends in SME and entrepreneurship finance in Canada
			Table 4.4. Financing SMEs and entrepreneurs: Definitions and sources of indicators for Canada’s Scoreboard
		Notes
	Chile
		SME lending
			Table 4.5. Distribution of enterprises in Chile, 2010
		Loans utilised compared to authorised
		SME credit conditions
		Equity financing
			Table 4.6. Formal flows of venture and growth capital investment in Chile, 2007­09
		Payment delays
		Government policy response
			SME government loan guarantees and government guaranteed loans
			SME government direct lending
				Figure 4.4. Value of direct government loans from INDAP, 2007-10
				Table 4.7. Number of new direct government loans in Chile, 2007-10
				Box 4.2. Definition of SMEs used in Chile’s SME and entrepreneurship finance Scoreboard
				Table 4.8. Financing SMEs and entrepreneurs: Scoreboard for Chile, 2007-10
				Figure 4.5. Trends in SME and entrepreneurship finance in Chile
				Table 4.9. Financing SMEs and entrepreneurs: Definitions and sources of indicators for Chile’s Scoreboard (cont.)
		Notes
		References
	Denmark
		SME lending
			Table 4.10. Distribution of enterprises in Denmark, 2007
			Table 4.11. Share of enterprises that applied for financing in Denmark according to growth record, 2007 and 2010
			Table 4.12. Result of loan applications by size of firm in Denmark, 2010
		Credit conditions
		Equity financing
		Other indicators
		Government policy response
			Table 4.13. Financing SMEs and entrepreneurs: Scoreboard for Denmark, 2007-10
			Figure 4.6. Trends in SME and entrepreneurship finance in Denmark
			Table 4.14. Financing SMEs and entrepreneurs: Definitions and sources of indicators for Denmark’s Scoreboard
		References
	Finland
		SME lending
			Table 4.15. Distribution of firms in Finland, 2010
		SME authorised loans compared to requested loans
		SME credit conditions
		Equity financing
			Table 4.16. Venture and growth capital investment in Finland, 2007-10
		Other indicators
			Table 4.17. Incidence of solvency problems in Finland, June 2009-May 2011
		Government policy responses
			SME counter-cyclical loans and guarantees
				Table 4.18. SME loans and guarantees granted by Finnvera, 2007-10
				Table 4.19. SME export credit guarantees in Finland, 2007-10
		Experience during the recovery period
			Table 4.20. Use of external finance by SMEs in Finland in the last six months, 2H 2010
			Box 4.3. Definition of SMEs used in Finland’s SME and entrepreneurship finance Scoreboard
			Table 4.21. Financing SMEs and entrepreneurs: Scoreboard for Finland, 2007-10
			Figure 4.7. Trends in SME and entrepreneurship finance in Finland
			Table 4.22. Financing SMEs and entrepreneurs: Definitions and sources of indicators for Finland’s Scoreboard
		Notes
	France
		SME lending
			Table 4.23. Distribution of enterprises in France, 2007
			Figure 4.8. Growth rates of bank loans to all firms in France, 2007-11
		SME loans utilised compared to authorised
		SME credit conditions
			Figure 4.9. Credit conditions for SMEs in France and the euro area (supply side survey), 2007-11
			Figure 4.10. Credit demand for SMEs in France and the euro area (supply side survey), 2007-11
			Figure 4.11. Interest rates in France, 2007-11
		Equity financing
			Table 4.24. Private equity investment in France, 2005-10
		Other indicators
			Figure 4.12. Changes to supplier and client payment delays for SMEs in France, 1999-2009
		Government policy response
			Table 4.25. Measures to finance SMEs in France
			Box 4.4. Definition of SMEs in the EU and France
			Table 4.26. Financing SMEs and entrepreneurs: Scoreboard for France, 2007-10
			Figure 4.13. Trends in SME and entrepreneurship finance in France
			Table 4.27. Financing SMEs and entrepreneurs: Definitions and sources of indicators for France’s Scoreboard
		References
	Hungary
		SME lending
			Table 4.28. Distribution of enterprises in Hungary, 2007
		SME credit conditions
		Equity financing
			Table 4.29. Venture and growth capital financing in Hungary, 2007-10
		Other indicators
		Government policy responses
			Table 4.30. Financing SMEs and entrepreneurs: Scoreboard for Hungary, 2007-10
			Figure 4.14. Trends in SME and entrepreneurship finance in Hungary
			Table 4.31. Financing SMEs and entrepreneurs: Definitions and sources of indicators for Hungary’s Scoreboard
	Italy
		SME lending
			Table 4.32. Distribution of firms in Italy, 2009
			Figure 4.15. Lending to firms in Italy, 2005-11
			Figure 4.16. Bank lending to various sectors in Italy, 2010
		SME loans used vs. authorised
		SME credit conditions
		Equity financing
			Table 4.33. Early stage and expansion capital in Italy, 2006-10
		Payment delays, non-performing loans and bankruptcies
			Figure 4.17. Payment delays in Italy, 2008-11
		Government policy response
			Box 4.5. Definition of SMEs used in Italy’s SME and entrepreneurship finance Scoreboard
			Table 4.34. Financing SMEs and entrepreneurs: Scoreboard for Italy, 2007-10
			Figure 4.18. Trends in SME and entrepreneurship finance in Italy
			Table 4.35. Financing SMEs and entrepreneurs: Definitions and sources of indicators for Italy’s Scoreboard
		References
	Korea
		SME lending
			Table 4.36. Distribution of establishments in Korea, 2006
		SME credit conditions
			Figure 4.19. Large enterprise and SME loans in Korea, 1995-2010
		Equity financing
			Table 4.37. Venture and growth capital in Korea, 2007-10
		Payment delays and insolvency
		Government policy response
			SME government guaranteed loans and direct lending
				Box 4.6. Definition of SMEs used in Korea’s SME and entrepreneurship finance Scoreboard
					Definition of SMEs used by BOK and FSS
				Table 4.38. Financing SMEs and entrepreneurs: Scoreboard for Korea, 2007-10
				Figure 4.20. Trends in SME and entrepreneurship finance in Korea
				Table 4.39. Financing SMEs and entrepreneurs: Definitions and sources of indicators for Korea’s Scoreboard
	The Netherlands
		SME lending
			Table 4.40. Distribution of enterprises in the Netherlands, 2010
		SME loans authorised vs. requested
		SME credit conditions
		Equity financing
		Other indicators
		Government policy response
			Table 4.41. Financing SMEs and entrepreneurs: Scoreboard for the Netherlands, 2007-10
			Figure 4.21. Trends in SME and entrepreneurship finance in the Netherlands
			Table 4.42. Financing SMEs and entrepreneurs: Definitions and sources of indicators for the Netherlands’ Scoreboard
	New Zealand
		SME lending
			Table 4.43. Distribution of enterprises in New Zealand, 2010
		SME loans authorised vs. requested
			Table 4.44. SMEs requesting and obtaining finance in New Zealand, 2007-10
		SME credit conditions
		Equity financing
		Payment delays
		Government policy response
			Table 4.45. Financing SMEs and entrepreneurs: Scoreboard for New Zealand, 2007-10
			Figure 4.22. Trends in SME and entrepreneurship finance in New Zealand
			Table 4.46. Financing SMEs and entrepreneurs: Definitions and sources of indicators for New Zealand’s Scoreboard
		References
	Portugal
		SME lending
			Table 4.47. Distribution of enterprises in Portugal, 2008
		SME credit conditions
		Equity financing
			Table 4.48. Equity capital invested by stage in Portugal, 2007-10
		Payment delays, non-performing loans and bankruptcies
		Government policy response
			Table 4.49. Financing SMEs and entrepreneurs: Scoreboard for Portugal, 2007-10
			Figure 4.23. Trends in SME and entrepreneurship finance in Portugal
			Table 4.50. Financing SMEs and entrepreneurs: Definitions and sources of indicators for Portugal’s Scoreboard
	Slovak Republic
		SME lending
			Table 4.51. Distribution of enterprises in the Slovak Republic, 2007
		Credit conditions
		Venture capital and other indicators
			Table 4.52. Breakdown of venture capital investments in SMEs in the Slovak Republic according to investment stages, 2007-10
		Government policy response
			Table 4.53. Financing SMEs and entrepreneurs: Scoreboard for the Slovak Republic, 2007-10
			Figure 4.24. Trends in SME and entrepreneurship finance in the Slovak Republic
			Table 4.54. Financing SMEs and entrepreneurs: Definitions and sources of indicators for the Slovak Republic’s Scoreboard
	Slovenia
		SME lending
			Table 4.55. Distribution of enterprises in Slovenia, 2009
		Credit conditions
		Government policy response
			Table 4.56. Financing SMEs and entrepreneurs: Scoreboard for Slovenia, 2007-10
			Figure 4.25. Trends in SME and entrepreneurship finance in Slovenia
			Table 4.57. Financing SMEs and entrepreneurs: Definitions and sources of indicators for Slovenia’s Scoreboard
	Sweden
		SME lending
			Table 4.58. Distribution of firms and employment in Sweden, 2009
		SME credit conditions
		Equity financing
		Payment delays and bankruptcies
			Box 4.7. Situation of Swedish SMEs during the crisis
		Government policy response
		SME guaranteed loans and direct government loans
		SME authorised loans compared to loans requested
			Table 4.59. Financing SMEs and entrepreneurs: Scoreboard for Sweden, 2007-10
			Figure 4.26. Trends in SME and entrepreneurship finance in Sweden
			Table 4.60. Financing SMEs and entrepreneurs: Definitions and sources of indicators for Sweden’s Scoreboard
	Switzerland
		SME lending
			Table 4.61. Distribution of firms and employment in Switzerland, 2008
		SME credit conditions
			Table 4.62. SMEs’ access to finance in Switzerland, 2009-10
		Equity financing
			Table 4.63. Private equity investments in Switzerland, 2009-10
		Other indicators
		Government policy response
			Table 4.64. Financing SMEs and entrepreneurs: Scoreboard for Switzerland, 2007­10
			Figure 4.27. Trends in SME and entrepreneurship finance in Switzerland
			Table 4.65. Financing SMEs and entrepreneurs: Definitions and sources of indicators for Switzerland’s Scoreboard
	Thailand
		SME lending
			Table 4.66. Distribution of enterprises in Thailand, 2010
		SME loans authorised vs. requested
		SME credit conditions
		Equity financing
		Government policy response
			Box 4.8. Definition of SMEs used in Thailand’s SME and entrepreneurship finance Scoreboard
				Definition of SMEs according to the Thai Ministry of Industry
			Table 4.67. Financing SMEs and entrepreneurs: Scoreboard for Thailand, 2007-10
			Figure 4.28. Trends in SME and entrepreneurship finance in Thailand
			Table 4.68. Financing SMEs and entrepreneurs: Definitions and sources of indicators for Thailand’s Scoreboard
		Reference
	United Kingdom
		SME lending
			Table 4.69. Distribution of enterprises in the United Kingdom, 2007
		SME loans authorised vs. requested
		SME credit conditions
			Figure 4.29. Lending to SMEs and corporations in the United Kingdom, 2008-11
		Equity financing
			Table 4.70. Venture and growth capital investment in the United Kingdom, 2008-10
		Bankruptcies and payment delays
		Government policy response
			Box 4.9. Definition of SMEs used in the United Kingdom’s SME and entrepreneurship finance Scoreboard
			Table 4.71. Financing SMEs and entrepreneurs: Scoreboard for the United Kingdom, 2007-10
			Figure 4.30. Trends in SME and entrepreneurship finance in the United Kingdom
			Table 4.72. Financing SMEs and entrepreneurs: Definitions and sources of indicators for the United Kingdom’s Scoreboard
		Notes
	United States
		Small business lending
			Table 4.73. Distribution of firms1 in the United States, 2009
			Figure 4.31. Loan balances at depository institutions – commercial and industrial loans under USD 1 million, 1995-2011
			Table 4.74. Value of small business loans outstanding for depository lenders, 2005-10
		SME lending by lender size
			Table 4.75. Value of small business loans outstanding, 2005-10
			Table 4.76. Number of small business loans outstanding, 2005-10
			Table 4.77. Number of small business loans outstanding from depository lenders, 2005-10
			Table 4.78. Ratio of the value of small business loans outstanding to the value of total assets of depository lenders, 2005-10
			Table 4.79. Ratio of the value of small business loans outstanding to the value of total business loans outstanding for depository lenders, 2005-10
		SME credit conditions
			Figure 4.32. Senior loan officer opinion survey on bank lending practices, 1990­2011
		Small business credit demand
			Figure 4.33. Demand for commercial and industrial loans, 1992-2011
			Figure 4.34. Per cent of small firms borrowing at least once during the quarter, 1986-2011
		Other indicators
		Private equity financing
		Government policy response
			Table 4.80. SBA 7a and 504 loan guarantees, 2000-10
			Figure 4.35. Gross loans guarantees, total 7(a) and 504 programs, 1990-2011
			Table 4.81. Financing SMEs and entrepreneurs: Scoreboard for the United States, 2007-10
			Figure 4.36. Trends in SME and entrepreneurship finance in the United States
			Table 4.82. Financing SMEs and entrepreneurs: Definitions and sources of indicators for the United States’ Scoreboard
		Notes
		References
Annex A. 
Methodology
	Table A.1. Core indicators of the OECD SME and entrepreneurship finance Scoreboard
	Box A.1. What is an SME?
	Table A.2. Difference between national statistical and financial definitions of SMEs
	Table A.3. Preferred definitions for core indicators
	References
Annex B. 
Surveys and Statistical Resources on SME and Entrepreneurship Finance
Annex C. 
Example of a Simplified Quantitative Demand-side Survey