Financing SME growth in Germany
High energy prices and major geopolitical shifts, paired with an accelerated global
digitalisation of industries of economies worldwide and rising pressure to achieve
sustainability goals, have created new uncertainties for German SMEs. Successfully
navigating these changes, and in turn, seizing new growth opportunities, will require
sustained and significant investments. Access to an appropriate and diverse set of
financing sources will be critical. This paper examines current policy practices to
help German SMEs access finance, with a particular focus on efforts to link growth
to sustainability goals in the national policy mix. It provides a brief overview of
the German SME landscape, including key strengths and challenges in the context of
the twin transition, and discusses the financing instruments available to small businesses
in the country, including those with growth ambitions. It then analyses federal government
efforts to unleash finance for innovation, investment, and network expansion as drivers
of SME growth, and how these efforts compare to other OECD countries.
Available from July 10, 2024
In series:OECD SME and Entrepreneurship Papersview more titles