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On the Importance of Financial Instruments to Facilitate Growth

Author

Listed:
  • Ellitsa Dalampoura

    (European Commission, Directorate – General for Migration and Home Affairs)

  • Michael Polemis

    (Department of Economics, University of Piraeus, Piraeus, Greece)

Abstract

Small and Medium-Sized Enterprises (SMEs) constitute the backbone of all market economies worldwide; the EU is not an exception. As such, they merit particular attention from the part of the public authorities, in times of financial crisis when alternative financing sources are needed. Traditionally, the public authorities, being at the European or national level, used subsidies to assist SMEs in activities presenting some investment risk, and /or enhancing entrepreneurial high value-added export-oriented activities, producing tradable goods. This study presents the way financial instruments (FIs) were introduced into the European Union (EU) programs supporting SMEs during the financial and economic crisis and the intervention logic behind them.

Suggested Citation

  • Ellitsa Dalampoura & Michael Polemis, 2021. "On the Importance of Financial Instruments to Facilitate Growth," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 71(1-2), pages 73-91, January-J.
    • Handle: RePEc:spd:journl:v:71:y:2021:i:1-2:p:73-91
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    File URL: https://spoudai.unipi.gr/index.php/spoudai/article/download/2888/2725/2888-3806-1-SM
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    References listed on IDEAS

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    More about this item

    Keywords

    SMEs; Subsidies; Financial instruments; Leveraging; Financial crisis;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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