SMEs and Entrepreneurial Finance in OECD Countries: Good Practice and Lessons Learned

Abstract

This paper will review the small and medium-sized enterprises (SMEs) and entrepreneurship finance policies and practice in OECD countries by gleaning the best evidence available. The paper treated SME financing as a governance issue and applied the governance analytical techniques. The study integrated both the supply and demand sides of the SME finance in the analysis of SME access to finance, credit reporting, alternative financing options, financing innovation and the situation of market failure. The review finds that Australia has fallen far behind the other OECD countries in making efforts to understand the demands of small business financing and hence failed to respond to such unmet needs due to lack of solid evidence. Good practice and lessons learned summarised from the review may shed light on the policy development for SME and entrepreneurship finance in Australia in the future.