SME as a source of financing SME. A comparative analysis between France and Belguim

Details

Supervisors

Defraigne, Jean-Christophe

Faculty

Louvain School of Management

Degree label

Master de spécialisation en entreprises et politiques économiques européennes

Abstract

Micro, small, and medium-sized enterprises account for 99% of businesses in the EU, significantly contributing to wealth creation and employment in the union's member states. However, access to finance remains a persistent challenge for these companies, particularly when they aspire to rapid growth. While IPOs have been extensively studied in the context of large companies, their use by SMEs still needs to be explored. Understanding the application process, the regulations governing it, and its advantages as a source of financing is essential to shed light on this type of financing, which receives less attention than other types of funding. The choice of Belgium and France as benchmarks for our comparative analysis stems from the complex interplay between national dynamics and the broader framework of the European Union. Both EU member states operate within a standard economic and financial system and a framework to harmonize regulation across the union. However, member states often retain a margin of autonomy and flexibility in shaping their legal and regulatory frameworks. By drawing a parallel between France and Belgium, this study seeks to reveal the impact of such national regulations and other elements, such as divergences in market size, investor behavior, and the general economic climate on IPO success in both countries.