ABSTRACT
This study focuses on the relationship between small and medium sized enterprises (SMEs), private equity and capital markets on both sides of the Atlantic. Specifically, it examines the impact of private equity and capital markets on SME development in the United States and the European Union. It looks at the financial enabling environment for SMEs and provides conclusions and recommendations for change. The European Capital Markets Institute (ECMI) apriori sees SMEs as an important engine of growth and employment. Its objective in initiating the study is primarily to understand the relevance of private equity, particularly venture capital, and capital markets on SME development. A further objective is to understand the nature of institutional policy towards SMEs, gather to what extent it aids development, and what lessons can be learnt.
