Finance and Investment needs of Space SMEs in Europe: a survey-based analysis
- Paper number
IAC-19,E6,3,4,x48868
- Author
Mr. Yasen ILIEV, Luxembourg
- Coauthor
Mr. Lluc Diaz, The Netherlands, ESA
- Year
2019
- Abstract
The primary objective of this paper is to present the results of a research implemented in 2018 on the financial needs of Space SMEs in Europe. The goal of the research was to bridge the aforementioned knowledge gap by analysing the real needs of space enterprises incorporated in the European Union (EU) and European Economic Area (EEA). The following 2 research questions were to be answered: \bigskip Research Question (1): Are EU space SMEs at a more disadvantaged position when accessing finance as compared to all other European SMEs? \bigskip Research Question (2): Which financial instruments are suitable for European space SMEs? \bigskip To achieve this primary objective, an industry-wide survey assessing the financing needs of European small and medium enterprises active in the space industries was developed. \bigskip The survey was circulated to a select group of eligible space companies in order to produce relevant and meaningful results. Active between July 2017 and May 2018. \smallskip - Survey sent to: 300 companies \smallskip - Answers: 90 companies \smallskip - Valid answers: 76 companies \smallskip - Number of questions: 26 \smallskip - Number of closed questions: 24 \smallskip - Number of open questions: 2 \bigskip The conducted survey obtained a weight of 33% downstream, 47% upstream, and 20% -both downstream and upstream. \bigskip The outcome of the study was that on one side EU space SMEs are at a moderately disadvantaged position in accessing finance as compared to all other European SMEs. The rejection rates for space SMEs is approximately 14% whilst for all other EU SMEs it currently stands at 8% (ECB). Furthermore, growth capital equity funds with ticket size of EUR 1m or higher and working capital facilities providing short-term liquidity at variable repayment schedule.
- Abstract document
- Manuscript document
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