Green SMEs and Access to Finance: The Role of Banking Diversity

The cost and availability of capital act as a key constraint to financing the small green economy.

SMEs account for 99% of all European businesses, 58% of gross value added and two in three employees (EC, 2014). SMEs arguably play an even more prominent role in the green economy. The extent to which SMEs deliver on the promise of contributing to the green economy hinges at least in part on their access to finance. The ECB European SME survey suggests access to finance is seen as the second most pressing problem for SMEs, behind finding customers.