Thematic area: Economic Growth and Jobs. Sector: Private sector and Sustainable Industries
Capital Market Strategy for SMEs: Addressing information asymmetries
Partners: 
Ministry of Development, Industry and Foreign Trade / 
EU Delegation in Brazil.
Year: 2013
Project Overview:
The lack of funding is a major obstacle to the setting up, growth and survival of small and medium businesses. This problem affects, in particular, the most innovative enterprises, whose high risk profile - limited market power, lack of managerial skills, strong participation of intangible assets, lack of proper accounting records, inadequate funds - makes investors and banks reluctant to provide them with funding. Innovative small and micro enterprises (SMEs) are among the priorities of the Brazilian plan for industrial action geared towards entrepreneurship, the Greater Brazil Plan (Plano Brasil Maior). To minimise information asymmetries between innovative SMEs and potential investors, Brazil wants to seek the support of angel investor networks (Business Angel Networks - BANs), which are individuals or companies wishing to invest in other companies. The European Union has extensive experience in funding companies through angel investors. Under the Sector Dialogue on Small and Medium Businesses, this action seeks to deepen mutual understanding regarding these investors as well as the policies, programmes and other government tools that support entrepreneurship and business competitiveness.
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