ABSTRACT

This chapter describes the origins of Enterprise Market (EM) and the role that it plays in the market for small medium enterprises (SME) finance. It examines the difficulties faced by SMEs in accessing finance. This includes the purported 'finance gap', and information and transaction costs. Anecdotal evidence suggests that EM is bridging the finance gap. The chapter considers the extent to which EM has succeeded in addressing such difficulties, and the extent to which other entities such as the Newcastle Stock Exchange, as well as corporate law reforms, have addressed these difficulties without the need for an EM. The Angel Capital Electronic Network, is an internet listing service like EM, where accredited angel investors may view corporate investment opportunities. The Alternative Investment Market was launched by the London Stock Exchange in June 1995. Until 1999, the Corporations Law prohibited company offering shares or issuing applications for share issues, without first lodging a prospectus with the Australian Securities and Investment Commission.