Financing SMEs and Entrepreneurs Scoreboard: 2025 highlights
1 min read
SMEs are struggling. Just as they recovered from COVID-19, inflation spiked, triggering interest-rate hikes.
Bank lending to SMEs has plunged 9% — the biggest drop since the Global Financial Crisis. Financing costs jumped 6%, and bankruptcies climbed 11%.
Alternative funding isn’t filling the gap. Factoring and leasing declined, while venture-capital tumbled 34% in 2023, with only a slight rebound in 2024.
Many SMEs now prioritise survival over growth, cutting investment in innovation and sustainability efforts.
Governments are stepping in with loan guarantees and targeted venture-capital support, especially for green tech and deep tech.
So what’s next for SME financing? Check out “OECD SME and Entrepreneurship Financing Scoreboard: 2025 Highlights”
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