EuroEconomica, Vol 38, No 1 (2019)

Venture capital market and its role in supporting SMEs from CEE countries

Angela Roman, Irina Bilan


SMEs are crucial for the economy of EU countries and the availability of financing for these enterprises is an important factor of their growth and development. Although bank credit is the main source of external financing of SMEs in European countries, banks are generally reluctant in funding small companies, start-ups and innovative SMEs, which have very high growth potential. Thus, for these companies venture capital is an important financing option, complementary to bank financing. In this context, the objective of our paper is to comparatively analyze the dynamics of venture capital market in CEE countries, highlighting the impediments to its growth and some key measures adopted at European level to promote venture capital. Overall, our research indicates that the insufficient development of the venture capital market is one of the most important constraints for the creation of new businesses and the development of innovative ones, which calls for an increased attention of the decision makers at different levels towards supporting the expansion of this market.



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