Europe should therefore be very concerned by the difficulties that SMEs are currently facing – in particular those in countries under stress. Of course, we cannot avoid that certain business models become outmoded and disappear during downturns. This is the nature of the market economy. But the situation facing SMEs in certain jurisdictions goes beyond that.
Firms have been forced to close not only because business models were flawed, but because they were located in the wrong place and could not get access to finance. Two major challenges lie in front of us: 1. Continental Europe remains a bank-based economy, and small businesses mostly depend on banks to finance themselves.