Alternative financing of SMEs in Romania

Improving access to finance for small and medium-sized enterprises (SMEs) is one of the priorities of the European Union’s economic and financial policies. For example, in the United States, for example, the volume of SME financing through the capital market is nearly 5 times higher. At a similar level, the European venture capital market would have generated over 90 billion euros in the past 5 years. Also, a positive attitude towards securitization of bank portfolios would have added an extra 100 billion euros in new bank funding to the private environment, of which at least one fifth would be directed to SMEs. Romania also aims to increase the financing capacity of enterprises by diversifying the financing sources, the banking one, unable to cover the existing capital needs of the domestic enterprises. A special segment of SMEs, which deserves increased attention, is innovative innovators, spin-offs and spin-offs, enterprises in the early stages of development. Due to the high risk associated with the financing of these types of entities, bank financing is still not available, which underlies the need to identify alternative sources of funding to support their development. In fact, Romania has made a commitment to the financial troika of the European Union, the World Bank and the International Monetary Fund to identify viable financing solutions to complement those already in place.