Access to finance for SMEs and scale-ups

Official HTML ↗ PDF DOCX

19.11.2025 A10-0185/1

Amendment 1

Tsvetelina Penkova

on behalf of the S&D Group

Anouk Van Brug

on behalf of the Renew Group

Damian Boeselager

on behalf of the Verts/ALE Group

Report A10-0185/2025

Jorge Martín Frías

Access to finance for SMEs and scale-ups

(2025/2072(INI))

Motion for a resolution (Rule 188(3) of the Rules of Procedure) replacing non-legislative motion for a resolution A10-0185/2025

European Parliament resolution on access to finance for SMEs and scale-ups

The European Parliament,

– having regard to the Commission communication of 29 January 2025 entitled ‘A Competitiveness Compass for the EU’ (COM(2025)0030), – having regard to the publication of 18 July 2024 by Commission President Ursula von der Leyen entitled ‘Europe’s choice: political guidelines for the next Commission 2024-2029’, – having regard to the European Central Bank report of April 2025 entitled ‘Survey on the Access to Finance of Enterprises in the euro area – First Quarter of 2025’, – having regard to the Commission communication of 19 March 2025 entitled ‘Savings and Investments Union – A Strategy to Foster Citizens’ Wealth and Economic Competitiveness in the EU’ (COM(2025)0124), – having regard to the Commission report of 2025 entitled ‘Survey on the access to finance of enterprises (SAFE) – Analytical report 2024’, – having regard to the report of 9 September 2024 by Mario Draghi entitled ‘The future of European competitiveness’ (Draghi report), – having regard to the Commission report of 2024 entitled ‘Annual Report on European SMEs 2023/2024’, – having regard to the report of April 2024 by Enrico Letta entitled ‘Much more than a market’ (Letta report), – having regard to the conclusions of the Special European Council meeting of 17 and 18 April 2024, – having regard to its resolution of 14 December 2023 on increasing innovation, industrial and technological competitiveness through a favourable environment for start-ups and scale-ups, – having regard to the Commission communication of 12 September 2023 entitled ‘SME Relief Package’ (COM(2023)0535), – having regard to the report of the Committee on Economic and Monetary Affairs (A10-0000/2025), – having regard to the European Insurance and Occupational Pensions Authority statement of 25 April 2024 entitled ‘How European insurers and pension funds can contribute to further strengthen the Capital Markets Union’, – having regard to the European Securities and Markets Authority position paper of May 2024 entitled ‘Building more effective and attractive capital markets in the EU’, – having regard to the Commission communication of 28 May 2025 entitled ‘The EU Startup and Scaleup Strategy: Choose Europe to start and scale’ (COM(2025)0270), – having regard to the Commission communication of 21 May 2025 entitled ‘The Single Market: our European home market in an uncertain world – A Strategy for making the Single Market simple, seamless and strong’ (COM(2025)0500), – having regard to the International Monetary Fund report of October 2024 entitled ‘Regional Economic Outlook – Europe’, – having regard to Rule 55 of its Rules of Procedure, A. whereas micro, small and medium-sized enterprises (MSMEs) represent the backbone of European business, with small and medium-sized enterprises (SMEs) accounting for 99.8 % of all enterprises, 65.2 % of employment and 53.1 % of the value added in the non-financial business sector in the EU in 2023; B. whereas European SMEs vary in scope, location, ownership and innovation capacity, and hence face diverse challenges and financing needs; C. whereas most European SMEs operate mainly at national level; whereas relatively few SMEs are involved in cross-border operations within the EU, while those which export outside the EU constitute a minority; D. whereas one important reason the EU lags behind its global competitors is the difficulty its businesses face in securing financing, particularly SMEs that need finance to scale up; whereas improving access to venture capital and equity financing, particularly for innovative companies, is crucial; E. whereas the Draghi report indicates that regulatory obstacles and administrative burdens are among the greatest challenges faced by SMEs, and recommends that the regulatory burden on SMEs should be reduced on proportionality grounds; F. whereas start-ups and micro-enterprises in particular find it difficult to obtain appropriate funding and to identify and meet regulatory financial requirements, especially at the development stage; G. whereas the Commission aims to improve access to finance for SMEs in order to increase scale, reduce inefficiencies and promote interoperability, and has set a target of at least a 35 % reduction in reporting burdens for SMEs, and announced a new SME competitiveness check in impact assessments; H. whereas Europe lacks a more dynamic and favourable environment for innovative companies to scale-up, which has led close to 30 % of ‘unicorns’ relocating abroad; I. whereas a well-capitalised banking sector will continue to play an important role in financing businesses, especially SMEs; J. whereas a weakening of State aid and competition rules in the EU increases barriers to market entry for start-ups and scale-ups and thus hinders the competitive allocation of capital based on merit; K. whereas the gender gap still persists in entrepreneurship and access to finance for women-led MSMEs; L. whereas, according to the International Monetary Fund’s report entitled ‘Regional Economic Outlook – Europe, ‘shadow tariffs’ in the EU internal market are estimated to amount to around 45 % for trade in goods and 110 % for trade in services; M. whereas the Commission has various initiatives in place aimed at promoting entrepreneurship, innovation and digital transformation in the EU, such as the start-up and scale-up strategy, the eco-innovation scoreboard, knowledge and innovation communities (KICs), the European cluster collaboration platform, the Digital Decade and the digital single market strategy, as well as funding programmes dedicated to innovation in other policy areas; N. whereas there are noticeable historical disparities between the investment culture in Europe and in other regions of the world, notably for venture capital and angel investment; O. whereas there is a need for further investment and advancements in digital infrastructure to keep pace with evolving technologies and to enable the EU’s start-ups, scale-ups and SMEs to remain competitive on the global stage and at the forefront of innovation; General considerations 1. Considers that creating favourable market conditions for European companies to launch, innovate, start up, and scale up in Europe is essential to unlock our market’s full potential and help our economies become more competitive; calls for the removal of barriers to cross-border investment and the strengthening of the Savings and Investment Union (SIU) to facilitate SME access to both equity and debt markets; 2. Underlines the important role that completing the banking union will also contribute to boosting Europe’s competitiveness by supporting the financing of SMEs; stresses that completing the SIU goes hand in hand with completing the banking union; 3. Emphasises that, due to their size, the overwhelming majority of SMEs will continue to rely on bank lending as their sole source of finance since bank funding accounts for more than three quarters of SME financing, making SMEs particularly vulnerable to a tightening of bank lending; supports measures to diversify funding sources for start-ups and SMEs that can access equity financing; underlines that innovative SMEs are key to achieving EU competitiveness; 4. Acknowledges that SMEs differ widely across Member States in business models, size, location, financial structure and legal form; notes that this diversity requires a spectrum of funding options; calls on the Commission to support the creation of tailored programmes, instruments and initiatives to assist businesses at different stages of development; 5. Strongly regrets that persistent barriers to the free flow of capital in the EU block access to finance for SMEs, raise the cost of capital, and hold back innovation and economic growth; underlines that deepening and completing the SIU is essential to removing these barriers and establishing an integrated European capital market that fosters job creation, long-term prosperity and economic resilience; 6. Welcomes the fact that the Draghi and Letta reports recognise the need for a more competitive, less bureaucratic and more integrated single market; urges the Commission to act swiftly and decisively to put forward legislation to implement the recommendations made by these reports; 7. Welcomes the Commission start-up and scale-up strategy; believes that it will promote innovation and address the challenges faced by individual innovators, founders, start-ups and scale-ups in the EU; 8. Highlights that the robustness of the financial sector is a key element of its competitiveness; recalls that the Capital Requirements Regulation includes an ‘SME supporting factor’ to incentivise banks’ lending to SMEs; 9. Stresses that the EU should strive to make the business environment easier for entrepreneurs and to create a scale-up ecosystem that relies on both private and public investments; is convinced that dedicated definitions of start-ups and scale-ups will increase the opportunities for support through measures that are tailored to the specific needs and features of start-ups and scale-ups by boosting their access to European capital markets and private investors; recalls that productivity gains could be achieved through investments in innovative activities; recognises that developing a sustainable economy represents a significant competitive advantage for the EU; 10. Considers it essential to promote the role of women and young people within the SME sector, where their participation remains disproportionately low; stresses that targeted policy actions should support entrepreneurship and financial inclusion for these groups; 11. Draws attention to the particular challenges faced by European scale-ups in obtaining late-stage growth financing; notes that many EU firms remain dependent on foreign venture capital and investors, with a large share of later funding rounds led by non-European investors; encourages public support for venture capital markets to be targeted on projects aligned with EU strategic objectives and the green transition, and that have a positive social impact; 12. Highlights the critical role of guarantee instruments in enhancing access to finance for SMEs; notes that such instruments can mitigate the risks of lending to SMEs by providing credit enhancements and risk-sharing mechanisms; calls on the Commission to promote the use of guarantee instruments and amplify the use of guarantees in the next programming period, following the success of InvestEU; 13. Strongly believes that developing a credible sustainable finance framework is pivotal in channelling investments in line with long-term EU objectives and attracting international investors; calls on the Commission and the Member States to increase efforts to make sustainable finance better suited to SMEs’ needs; 14. Considers that facilitating access to finance for SMEs and scale-ups will depend on the enhanced capacity to unlock private and public investment and savings, bridging the funding gap for scale-ups, and reinforcing a competitive and more integrated capital markets ecosystem that is well-regulated and based on sound investor protections within the EU; 15. Stresses that simplification efforts should not result in the removal of essential regulations and provisions that support SMEs, as these are crucial for enhancing their competitiveness and reduce inefficiencies; Delivering on simplification and ensuring proportionality in EU law 16. Recalls that many European start-ups and scale-ups are relocating to non-EU countries due to insufficiently integrated and underdeveloped capital markets in the EU; warns that start-ups and scale-ups are moving due to administrative burdens; stresses that, if unaddressed, Europe risks losing companies at key growth stages; 17. Urges the Commission to develop and adopt a ‘start-up test’ in order to better assess the impact of legislation focusing on innovation, financing and competitiveness; considers that the Commission President’s proposal for a competitiveness check should have a special framework as regards start-ups, scale-ups and SMEs to ensure that regulation incentivises starting new businesses in Europe; 18. Urges the Commission to assess regulatory obligations that burden companies and to develop proportionality thresholds to relieve SMEs and start-ups from excessive obligations; welcomes the new SME competitiveness check; maintains that the availability of sustainability information is of critical importance in the process of credit allocation to SMEs; 19. Stresses that the ‘one-in, one-out’ approach has not been sufficiently implemented; calls on the Commission to propose a simplification strategy in areas where simplification will deliver without weakening the aims of legislation; Unlocking private capital and savings 20. Notes that EU households hold substantial savings in low-yield assets; strongly encourages developing the SIU to channel long-term savings into capital markets; supports national efforts to deepen them and therefore expand capital for SMEs; stresses that the achievement of SIU requires the full integration of national capital markets; 21. Recalls the catalytic role that targeted public support plays in bridging the funding gap for infrastructure and manufacturing capacity for start-ups and scale-ups, particularly in cases where private investments are insufficient or unavailable; 22. Calls on the Commission to explore the benefits of enhanced central supervision on EU financial markets to reduce frictions that continue to discourage cross-border investment and assess the feasibility of a single rulebook for market participants; 23. Calls on the Commission to facilitate the participation of start-ups and scale-ups in EU funding programmes; calls on the Commission to set up a centralised digital portal to help SMEs identify EU funding opportunities; this portal should use accessible language, be AI-enabled and mobile-friendly; 24. Calls on the Commission to improve investors’ access to information and protection, while leveraging the potential of simplified retail products to attract more savings into the capital markets; 25. Regrets that the EuVECA Regulation has not yielded a positive impact on local venture capital markets; asks the Commission to swiftly review the EuVECA Regulation; 26. Strongly emphasises the need to improve the financial literacy of EU citizens and entrepreneurs, as highlighted in the SIU; stresses the benefits of enhanced financial literacy so that citizens can make better-informed financial decisions independently; 27. Stresses the need to remove the existing equity-debt bias in corporate taxation, which drives up leverage and encourages the use of complex financial instruments, increasing systemic risks in capital markets; 28. Highlights the need to protect and promote access for start-ups and scale-ups to public procurement processes, such as in the context of the digitalisation of public administrations, to foster the creation of a dynamic and competitive European digital sector; calls on the Commission to act as a launch-customer by dedicating a share of its own procurement to European scale-ups; 29. Underlines that the potential of the European Investment Bank (EIB) must be fully leveraged to crowd in private investment, from decarbonisation to defence; asks the EIB to dedicate more resources to SME projects; regrets the lack of concrete proposals in this regard; 30. Stresses the need to expand initiatives such as VentureEU to attract greater private investment for start-ups and scale-ups; urges the Commission to encourage the Member States to enhance incentives for early-stage investment by business angels; calls on the Commission to examine best practices across the EU and to provide recommendations to the Member States; Bridging the funding gap for SMEs, start-up and scale-ups 31. Regrets that many European businesses end up relying on venture capitalists based in non-EU countries and settling in non-EU country markets to scale up their businesses due to the lack of scale-up financing in the EU; expresses concern over the growing number of SME failures in the EU; 32. Calls on the Commission to facilitate the participation of start-ups and scale-ups in EU funding programmes; recognises the current financial landscape, in which start-ups struggle to access targeted funding due to bureaucratic hurdles and long waiting periods post-grant approval; highlights the necessity of tailoring the current EU funding structure to the distinctive requirements of start-ups; 33. Encourages the Member States and the Commission to prioritise investments in digital infrastructure across urban and rural areas by adopting a forward-thinking approach that supports the growth of such firms and bolstering Europe’s digital leadership; 34. Welcomes efforts to complement InvestEU and the European Tech Champions Initiative to bridge the financing gap of deep tech scale-up companies; calls on the Commission to ensure that the governance and design of the Scaleup Europe Fund guarantees a high degree of public accountability, alignment with high ethical standards and the European general interest; 35. Notes that mobilising institutional investors such as insurers, pension and venture funds is key to closing the scale-up gap; stresses the need to expand venture, growth and private equity funding for SMEs and scale-ups; urges the Commission to improve the cross-border investment environment for European venture capital; 36. Calls on the Commission to support the development of dedicated SME and scale-up growth markets to improve access to public equity markets for innovative companies; supports the creation of an EU-wide framework for SME and scale-up stock exchanges with simplified listing requirements and enhanced investor protections; urges the Commission to create an EU Total Stock Market Fund; 37. Welcomes the adoption of the EU Listing Act that will make it easier for companies, including SMEs, to list on European stock exchanges; asks the Commission to ensure that Level II rules of the Listing Act are simple and not too burdensome; 38. Encourages the Commission to strengthen co-investment platforms as a means to crowd in private investment; asks for the future European Tech Champions Initiative 2.0 to scale-up its financial means to support EU funding and listing of start-ups; 39. Highlights the importance of channelling citizens’ savings into productive investment instruments that can benefit SMEs and scale-ups; encourages the Commission to promote simple investment products and to ensure adequate protections for retail investors; 40. Welcomes the European single access point (ESAP), which will create an EU-wide database of financial and non-financial data; notes that the ESAP Regulation offers SMEs the option to voluntarily submit their data in order to increase their visibility among investors, and encourages SMEs and start-ups to make use of this possibility; calls on the Commission to integrate into the ESAP a pan-European credit referral scheme for SMEs and start-ups, where SMEs can upload their relevant data to attract the attention of potential investors; 41. Emphasises that a more integrated innovation ecosystem, with networks of universities, start-ups, large enterprises and venture capitalists, underpinned by access to testing facilities and technology infrastructure, is instrumental in helping businesses scale up; Reinforcement of a competitive ecosystem in the EU 42. Regrets that the EU’s capital market remains fragmented within national borders, creating inefficiencies and preventing market operators from harnessing the full benefits of the Single Market and the scale effects of an integrated market; 43. Welcomes the creation of the European Innovation Council (EIC), which aims to support innovative start-ups and scale-ups that have not been able to secure funding due to market failure; calls for the EIC Fund to pay special attention to geographical balance; welcomes the EIC widening action plan and the goal of increasing the participation of ‘widening countries’; calls on the Commission to fully implement the actions recommended by the EIC Board to ensure a truly European impact; 44. Highlights the need for the EIC to be a credible market actor; recalls that EIC investments should aim to ‘crowd in’ private investors; calls for a clear strategy on the management of the EIC Fund, including with regard to the methods and criteria for capital allocation and evaluation of fund managers’ performance; 45. Encourages the EIB, including the European Investment Fund (EIF), and national development banks to equitably increase support to start-ups and scale-ups, including those operating in emerging high-potential sectors, in particular in the fields of EU energy and climate resilience and digital transformation; observes that many start-ups are unaware of the EIB’s offerings and that better outreach efforts are essential to ensure that such firms can benefit from EIB financial support; 46. Acknowledges that, according to the European Patent Office, more than 10 % of European start-ups that applied for patents have already benefited from EIC funding; is of the view that the Unitary Patent reform is a good example of providing uniform protection across all participating countries, on a one-stop-shop basis; calls on Member States that have not yet ratified the Unified Patent Court Agreement to do so; acknowledges that compared to obtaining multiple single patents, the Unitary patent, valid in all participating Member States, offers a cost reduction for applicants; 47. Welcomes the appointment of an EU SME envoy; urges this envoy to undertake a comprehensive analysis on the status of European start-ups and scale-ups, encompassing their daily hurdles and predicaments; encourages the Commission to appoint start-up and scale-up contact points in relevant directorates-general to better coordinate dedicated policies; calls on the Commission to establish a dedicated network of advisers for scale-ups as part of the Enterprise Europe Network; 48. Notes that the future 28th regime initiative planned by the Commission has the potential to simplify the work of private investors and attract more capital in European innovative start-ups, scale-ups and SMEs; calls on the Commission to clarify what the 28th legal regime could consist of and recalls that it must create clear added value at EU level; warns of the risk of fragmentation it could entail; 49. Highlights that the EIB has a decisive role to play in developing EU venture capital markets; calls on the Commission and the EIB Group to take action to foster institutional investors’ involvement in venture capital by helping them build expertise; calls on the EIB Group to increase its outreach and engagement efforts with institutional investors, building on the model of the ‘Tibi’ Initiative; 50. Calls on the Commission – with input from the Member States – to provide SME and scale-up guidelines to navigate differing EU legal systems, including corporate, labour, insolvency, tax and intellectual property rules, and national funding schemes; urges action on fragmented insolvency laws, as highlighted by Draghi and Letta, noting the importance for the creation of the SIU; 51. Recommends that the EIF publish detailed anonymised data on returns and key statistics on the funds it supports; calls for an increase in the EIF’s budget to support the growth of an EU venture capital ecosystem; calls on the EIF to increase the proportion of its investments that have a positive impact on the environment and to set strict sustainability conditions; asks the EIF to require its financial intermediaries to verify that human rights are respected along their supply chains; 52. Believes that innovative companies could benefit from a single set of EU-wide rules, especially in the area of taxation; recalls that SMEs face significant fiscal challenges on account of complex tax regulations and fragmented tax systems; urges the Commission to explore solutions that simplify tax procedures and reduce compliance while assessing why the proposed directive establishing a head office tax system (HOT) for SMEs has not been met with great enthusiasm in the Council; ° ° ° 53. Instructs its President to forward this resolution to the Council and the Commission.

Or. en