The European Capital Markets Union and its Impact on Future SME Financing

  • Arndt Werner
  • Michael Torben Menk
  • Florian NeitzertEmail author
Part of the FGF Studies in Small Business and Entrepreneurship book series (FGFS)


Small- and medium-sized enterprises (SMEs) are facing enormous changes in the European financial sector. A growing number of international businesses are being confronted with a shift in financing towards international sourcing opportunities. Thus, to make international capital markets more attractive to European SMEs, the European Commission is currently implementing 33 new measures (the European Capital Markets Union). The goal of these measures is to incentivise more capital market-based forms of financing. However, the question of whether these new measures will also lead to an effective improvement in new venture and growth financing has not been answered. Our article intends to fill this gap in the research literature by applying a mixed-method approach focussing on experts (interviews) and SME firms (survey). We find that the Capital Markets Union will by no means make regional banking systems superfluous with regard to future SME financing. We conclude that banks and capital markets can only contribute significantly to stabilising the European financial system by complementing each other.


European Capital Markets Union Entrepreneurial finance Crowdfunding SME bonds German banking sector Brexit 



We would like to thank the anonymous reviewers for their constructive comments as well as Yvonne Hess (INFINMENT GmbH), Thomas Stewens (Executive Board BankM—Representation on FinTech Group Bank AG) and Ingo Wegerich (President of Interessenverbandes kapitalmarktorientierter kleiner und mittlerer Unternehmen e.V. (“Kapitalmarkt KMU”) as well as Partner of Luther Rechtsanwaltsgesellschaft mbH) for the participation in the interviews that were conducted for the empirical part of this paper.


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Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Arndt Werner
    • 1
  • Michael Torben Menk
    • 1
  • Florian Neitzert
    • 1
    Email author
  1. 1.University of SiegenSiegenGermany

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