Financing Opportunities for SMEs in Hungary
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| Format: | Thesis |
| Kulcsszavak: | corporate finance finance international finance kis- és középvállalkozás - KKV sustainability |
| Online Access: | http://dolgozattar.uni-bge.hu/56603 |
| Abstract: | The medium-sized enterprise sector is the driving force of the Hungarian economy, not only because of their concentration, but also because of to its high added value, dynamism adaptability, and increased export orientation, from which the nation benefits significantly. Hungarian SMEs also serve an important social role, ensuring the livelihood of many households through employment, guaranteeing a stable standard of living and social cohesion. The paper delves deeper into the current Hungarian financing environment and narrows the scope for Hungarian SMEs to access finance, highlighting their continued reliance on traditional banking services and their increasing openness to alternative financing channels such as private equity, venture capital, and crowdfunding and also to the globally emerging green financing instruments. While bank loans remain a source of finance due to their availability, characterized by strict requirements and inflexible repayment terms, they are often unable to adapt to the changing needs of fast-changing SMEs and do not meet the needs of SMEs, especially in early-stage or innovation-driven industries. That is where alternative financing methods have come into effect offering financing options tailored to business maturity, with more favorable schemes such as less collateral, reduced borrowing costs. |
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