New Models of Financing and Financial Reporting for European SMEs

A Practitioner's View

Editors: Kaili, Eva, Psarrakis, Dimitrios, van Hoinaru, Raz (Eds.)

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  • -Gathers content in finance, economics, accounting and regulation by 13 top professional business and policy makers
  • -Unifies two sectors, state and private, and their stance towards SMEs
  • -Looks at the International Financial Reporting Standards (IFRS) for SMEs and how the SMEs report in a new financial environment
  • -Explains the EU approach in crowdfunding and ICOs in the context of the Commission's Fintech Task Force
  • -Argues that governments in Europe should start to more actively support certain method of financing rather than others
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eBook $39.99
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  • ISBN 978-3-030-02831-2
  • Digitally watermarked, DRM-free
  • Included format: EPUB, PDF
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  • Immediate eBook download after purchase
Hardcover $54.99
price for USA in USD
  • ISBN 978-3-030-02830-5
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
About this book

This book looks at the 23 million registered Small and Medium Enterprises (SMEs) that make up 98 per cent of the EU economy. Addressing the high end of SMEs in terms of new models for SME funding and financial reporting, this merged way of looking at SMEs reveals a ‘myopic’ thinking in terms of net present value and (future) cash flows generating short-termism and low risk appetite for business. This is not an accounting issue, but rather a preference toward certain financial tools. A segment of SMEs, the ones that seek new ways of funding possibilities, as well as modern technologies (MTFs listing, blockchain, ICOs, etc.) do require, even without knowing, IFRS for SMEs. This book reveals how market conditions impact the financial performance and sustainability of SMEs and also generate innovative policy interventions and financing strategies for SME integrity and efficiency. The authors frame their arguments in the context of the Capital Markets Union, looking at the Innovation Triangle, SME growth ecosystem and business models. They conclude by advocating for closing the circle of financing and financial reporting for SMEs, while considering if new financial models of financing and financial reporting are good for all the SMEs or only for some. The economy is being shaped by new models of financing and financial reporting. Read this practitioners’ view to understand the current changes and challenges.

About the authors

Eva Kaili is a Member of the European Parliament, elected in 2014. In her capacity as the Chair of the European Parliament's Science and Technology Options Assessment body (STOA), she has worked intensively on promoting innovation as a driving force of the establishment of the European Digital Single Market. She has been particularly active in the fields of blockchain technology, m/eHealth, big data, FinTech, AI and cybersecurity.
Dimitrios Psarrakis is Advisor of Economic and Monetary Policy at the European Parliament. He works mainly on files related to the Capital Markets Union, FinTech, and Financial Innovation. Prior to his work in the European Parliament he worked as credit risk specialist in the banking sector and advised the Greek Parliament during the years of the Greek debt crisis.
Raz van Hoinaru is part of the IFRS Permanent Team of the European Parliament. His work has spanned across public affairs agencies, government bodies, private companies, lobby and Parliament in-house policy development and advocacy. He has also taught classes at Queen Mary, University of London.

Reviews

“In the present context of restrictions in the SME financing market, this book reveals new innovative ways to obtain SME financing and elaborates on a realistic approach regarding harmonized financial reporting for European SMEs. Reading about the most recent views and nuanced thoughts on these topics by various experts in the field was very enriching.” (Anne-Mie Reheul, Professor, KU Leuven, Brussels Campus)

“Despite the importance that Alternative Finance has in praxis, there is a lack of more deeper and detailed studies about this trend, as one would wish. Accordingly, is always good news the publication of a book like this one written by practitioners and which allows to professionals, academics and any other interested on this matter have a great understanding about it. Also, from an academic point of view is interesting because it help us to better prepare students for a real life job. In conclusion, the book is essential reading for those who want to know about new models for financing.” (Enrique Moreno Serrano, Profesor, Universidad Rey Juan Carlos, Spain)

“This fascinating book, New Models of Financing and Financial Reporting for European SMEs,  is a contribution to the debate on reshaping the European economic system. SMEs represent 99% of the EU’s number of companies and are a driver that go beyond business circles and affects society and everyday life. The authors present an innovative approach, of practitioners, to inform and equip the reader and the market participants with XXI century business lessons and aptitudes. By uniting financing and financial reporting from a business and policy perspective this study is the most consistent of its kind.” (Steven Woolfe, Member of the European Parliament, Brussels, Belgium)

“This book has to be read as it is the most complex study of its kind, connecting new models for financing with IFRS for SMEs. The book is important for 99% of the total number of EU companies, represented by SMEs. This is a valuable guide coming from the market to the market participants, where the best practitioners explain challenges and give user friendly solutions. A book with a powerful impact.” (Theodor Stolojan, Member of the European Parliament, Chairman of the IFRS Permanent Team of the European Parliament)

“EU SMEs trade reached 4 trillion euro in transactions and new technologies like the DLT and blockchain shall improve the existing value chains and reduce business costs. In a very competitive economic international environment the European Union SMEs need not only to keep up with their American and Chinese counterparts, but must actually set market trends. The IFRS as applied in the EU and IFRS for SMEs can determine access to world markets providing a better understanding of companies’ business models and financial position. This book came on the table at the right time as a guide to practitioners, but also to academics. Well structured, easy to read, presenting a high quality analysis and addressing an under-studied area of business economics: how financing and financial reporting react to one another and adapt to markets. Definitely a must read.” (Iuliu Winkler, Member of the European Parliament, Vice-Chair of the International Trade Committee)

“The editors and authors of this collective volume draw upon their expertise, as well as their professional and institutional experience, to provide timely and informative perspectives on the specific financial needs of small and medium enterprises (SME) in Europe.” (Dr. Yuri Biondi, CNRS, University Paris Dauphine PSL, France)

“From a financial reporting perspective, this is the most anticipated book of the year. Focusing on financing and financial reporting, the editors Eva Kaili, Dimitrious Psarrakis and Raz van Hoinaru touch upon politics, regulation, business and innovation, providing a 360-degree view on IFRS for SMEs. A rich book whose use of knowledge can create the next market leader!”  (Bogdan Chirițoiu, Chairman of the Competition Council, Romania)

Table of contents (12 chapters)

Table of contents (12 chapters)
  • The SMEs Literature Review: Perspective of Studies

    van Hoinaru, Raz (et al.)

    Pages 1-19

  • The Role of the State in the Innovation Triangle: Law and Policy Fostering the Optimal Regulatory, Business and Innovation Policy Environment

    Zilgalvis, Pēteris

    Pages 23-38

  • Catalysing the SME Growth Ecosystem in the New Information Age

    Peyrano, Luca

    Pages 39-54

  • Financing SMEs in the EU: Challenges and Opportunities

    Heitz, Horst

    Pages 55-61

  • Financing Models for SMEs in the Age of Disintermediation

    Wandhöfer, Ruth

    Pages 63-70

Buy this book

eBook $39.99
price for USA in USD (gross)
  • ISBN 978-3-030-02831-2
  • Digitally watermarked, DRM-free
  • Included format: EPUB, PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover $54.99
price for USA in USD
  • ISBN 978-3-030-02830-5
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
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Bibliographic Information

Bibliographic Information
Book Title
New Models of Financing and Financial Reporting for European SMEs
Book Subtitle
A Practitioner's View
Editors
  • Eva Kaili
  • Dimitrios Psarrakis
  • Raz van Hoinaru
Copyright
2019
Publisher
Palgrave Macmillan
Copyright Holder
The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG, part of Springer Nature
eBook ISBN
978-3-030-02831-2
DOI
10.1007/978-3-030-02831-2
Hardcover ISBN
978-3-030-02830-5
Edition Number
1
Number of Pages
XXXVI, 179
Number of Illustrations
4 b/w illustrations
Topics