ESBA welcomes today's European Parliament vote, adopting the opinion report of MEP Emma McClarkin, but small businesses express reservations. Although small businesses were pleased to see greater focus on micro-companies and a call for a strengthened monitoring system, too much emphasis on Venture Capital should be approached with caution.
Typically, Venture Capital is aimed at highly innovative SMEs, who are high risk- high return. The large majority of SMEs however, do not fit this profile. 'Mainstream', non-highly innovative SMEs, whilst responsible for the lion's share of all EU employment, are much better served by readily accessible debt financing such as Loan Guarantees. Moreover, Horizon 2020 already covers the highly innovative SMEs.
Although Venture Capital is important and should certainly not be overlooked, it is debatable whether the COSME programme is the right place for it, at the risk of neglecting debt financing for small businesses.