Literature study about financing of scale-ups and high growth SMEs

In previous studies, it was found that attracting sufficient funding for the growth of enterprises is an obstacle. Growth companies make to a large extent use of internal financing and traditional forms of bank financing, but these sources are often not enough. Additional financing needs should be financed with new forms of bank financing as well as alternative (or non-bank) financing.Based on an extensive literature review we will give an overview of the funding sources that can be used in different stages of business growth. Then we will discuss to what extent funding sources are used by Belgian growth companies and what problems they face in attracting these funds. Finally, based on findings from the literature review a number of policy recommendations are formulated with regard to the financing of growth businesses.

Keywords:FINANCIAL INSTRUMENTS, FINANCING SCHEMES, FINANCING

Disciplines:Applied economics, Business administration and accounting, Management