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28 September 2009

EVCA: policymakers must focus on the regulatory impact of SMEs and start-ups


Studies such as the European Central Bank’s August paper have shown that private equity and venture capital are essential sources of finance for SMEs and start-ups. In Europe, private equity firms represent an overall portfolio of over 30,000 companies.

Speaking at a joint press conference on financial market reforms in Brussels, Javier Echarri, secretary general of EVCA, said:

“Policy makers have led us through the worst of the crisis, and now is the time to undertake a calm and full analysis of how the prevailing flow of regulation will affect the European economy over the long-term.” 
There is a need to be absolutely clear on the combined impact of all new and proposed measures that affect access to finance for SMEs and young, innovative companies, particularly in R&D-heavy areas such as high-tech manufacturing, clean technology and biotechnecholgy. Studies such as the European Central Bank’s August paper have shown that private equity and venture capital are essential sources of finance for SMEs and start ups.
“In Europe, private equity firms represent an overall portfolio of over 30,000 companies of all sizes, employing around 10 million across the EU. Private equity’s average holding period for a company is over 5 years and - it is exactly this type of long term investment that needs to be encouraged right now and extreme care should be taken not to undermine it.”
 


© EVCA - The European Private Equity & Venture Capital Association


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