The Evaluation Cooperation Group (“ECG”) met on 28-30 March in a workshop aimed to improve the effective support for SMEs. The European Investment Bank (EIB), which is chairing the group in 2012, stressed the importance to ensure effective support for SMEs. In 2011, the EIB Group (EIB and EIF) provided a record support for small businesses with financing at €13 billion.

The European Investment Bank hosted the workshop organised during the Evaluation Cooperation Group (“ECG”) meeting on 28-30 March, which was dedicated to the ‘Support for SMEs’. For the EIB ensuring access to credit, including microcredit, for small businesses is a top priority. In fact, in 2011 alone, the EIB Group (EIB and EIF) provided a record support for small businesses with financing at €13 billion.

At the workshop, Eurostat’s Manfred Schmiemann presented the results of a survey that covered 20.000 companies in 20 EU countries. The results showed that most small businesses preferred to build on existing relationships with their house bank. As expected, the general economic outlook turned out to be the most important factor limiting business growth.

On the other hand, a recent study presented at the workshop highlighted the continued challenge of filling the funding gap facing SMEs in many developing countries. It concludes that international finance institutions, such as the EIB, can make a significant contribution to improving access to finance by providing capital and technical assistance to local intermediary banks. It further recognises the role of stimulating small business lending by effective and cost-efficient cooperation with local partner banks, applying strict lending standards and using expertise from similar situations in other markets.