Research Tilburg Law School

Our mission is to understand and improve the role of law in tackling societal problems now and in the future.

Joseph McCahery on the Financing Gap of SMEs at Bocconi University in Milan

On November 27, Joseph A. McCahery will deliver a paper on “The Financing  Gap of SMEs” at Bocconi University in Milan.

Small and medium-sized enterprises (SMEs) with fewer than 250 employees are important players in all sectors of the economy. In Europe, there are more than 21 million companies in the SME sector, with almost 90 million individuals employed. The SME sector is thus significant for both economic growth and employment, which consequently implies that when the SME sector is negatively affected, economic growth and employment suffer. SMEs are particularly dependent on credit and cash flow. They confront numerous obstacles in borrowing funds because they are small, less diversified, and have weaker financial structures.


In recent years, policymakers and researchers have increasingly begun to explore the differences in SME lending across countries and bank ownership types. In this paper, we attempt to estimate the differences between supply and demand of SME financing in order to quantify the financing gap in Europe.