In this study, the OECD Working Party on SMEs and Entrepreneurs (WPSMEE) examined a variety of barriers on the supply and demand side of finance markets that limit SMEs uptake of alternative financial instruments. The study also covers trends in policy measures to support the development of alternative finance instruments for SMEs. According the report, the main areas of constraints for the demand and supply side include:

Demand Side

• Lack of awareness, negative perceptions and inability to access alternatives to bank finance.
• Lack of financial skills and vision
• Disadvantageous tax treatment of equity instruments

Supply Side

• Opacity of the SME market
• Regulatory ambiguity or barriers to entry in the SME market
• Limited exit options