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The scale-up finance gap in the EU: Causes, consequences, and policy solutions

Author

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  • Quas, Anita
  • Mason, Colin
  • Compañó, Ramón
  • Testa, Giuseppina
  • Gavigan, James P.

Abstract

This paper assesses the financing gap faced by innovative start-ups in the European Union (EU) when they reach the scaling-up stage of their development. It draws on data collected through a seminar involving 117 experts representing start-ups and scale-ups, financial actors, academia, and EU policymakers and aimed at investigating the causes, consequences, and policy solutions of the scale-up gap in the EU. Besides highlighting supply-side deficiencies, the seminar also emphasised weaknesses in both the demand side of the scale-up gap and the EU ecosystem for high-growth entrepreneurship. The paper offers policy recommendations, highlighting the need for policy solutions involving private actors and specifically targeting scale-ups. The paper also calls for more robust research on measuring the scale-up financing gap and its economic impact to improve the policy response.

Suggested Citation

  • Quas, Anita & Mason, Colin & Compañó, Ramón & Testa, Giuseppina & Gavigan, James P., 2022. "The scale-up finance gap in the EU: Causes, consequences, and policy solutions," European Management Journal, Elsevier, vol. 40(5), pages 645-652.
    • Handle: RePEc:eee:eurman:v:40:y:2022:i:5:p:645-652
    DOI: 10.1016/j.emj.2022.08.003
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    References listed on IDEAS

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    More about this item

    Keywords

    Scale-up; Scale-up gap; Policy design; Venture capital; European union;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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