As the global economy begins to turn the corner following the worst financial and economic crisis in decades, governments, businesses and individuals still face major challenges to prosperity. Small and medium-sized enterprises (SMEs) and entrepreneurs must continue to be key players in national strategies for growth, job creation and social cohesion. SMEs and entrepreneurs are crucial for tracing new paths to more sustainable and inclusive growth, thanks to their role in developing and diffusing innovation. However, they can only fulfill this potential if they obtain the finance necessary to start and grow their businesses.

This chapter outlines the methodology of the Scoreboard on SME and entrepreneurship finance and provides guidance for the interpretation of data in country profiles. It presents the core indicators selected to monitor debt and equity financing, SME solvency and government policy measures to support SMEs’ access to finance. The chapter discusses limitations to cross-country comparability and recommendations for the improvement of data collection.

This chapter analyses trends in SME and entrepreneurship finance over 2007-11, based on data collected for the country Scoreboards and information from demand-side surveys. A short overview of the global business environment and economic prospects sets the framework for the analysis of SME financing trends and conditions, focusing in particular on the changes which occurred in participating countries between 2010 and 2011. These recent developments are compared with trends over the crisis and early recovery stages. The pre-crisis year 2007 serves as a benchmark. The chapter concludes with an outlook on 2012 emerging trends and an overview of government policy responses intended to improve SMEs’ access to finance.

This chapter provides an overview of Credit Guarantee Schemes in Scoreboard countries. The evidence on public schemes provided in the country profiles is complemented by information on private guarantee schemes as well as mixed guarantee schemes (public-private). The chapter sets this evidence within a conceptual framework, discussing the rationale of credit guarantee systems and illustrating the diversity of CGSs, in terms of ownership structure, funding, programme design and operational characteristics. It explores these dimensions in specific credit guarantee schemes in Scoreboard countries and reviews the main policy measures introduced during the crisis to support credit guarantee operations. The chapter then addresses structural and emerging challenges for the effectiveness and sustainability of these schemes. For this purpose, key dimensions for evaluation and performance indicators are examined. The chapter concludes with policy considerations.