Market Gaps on Access to Finance - Bank of Valletta

Malta Business Bureau – <strong>Market</strong> gaps in access to finance
April 2013
5.2.9 Q6: Do you see any other important funding instruments emerging in the
future?
Apart from previous questions on respondents’ willingness to use other sources of financing such as
various forms of equity financing, this question asked respondents for their opinions on other
funding options, such as private public partnerships, microfinance institutions, crowd funding and
the concept of a co-operative bank.
Figure 14: Other funding options
%age of total respondents
25%
20%
15%
10%
5%
0%
21%
Private Public
Partnership
9%
Microfinance
institutions
Base: All respondents
Note (*): Venture Capital and Business angels were not prompted to respondents
1%
These additional funding options got few positive responses. In addition, 5% of respondents again
mentioned venture capital, without being prompted. Venture capital was already referred to in Q6,
whereby respondents were prompted for their potential interest in other private equity sources,
such as business angels and venture capital funds. In that question, 24% said they would be
interested in such financing. Other funding option suggestions mentioned as replies to this question
were export credit guarantees, merchant banks, and financing from insurance firms.
5.2.10 Q7: What are your expectations regarding assistance to be designed in the
next financing period covering 2014 - 2020?
3%
Crowd funding Co-operative
Banks
This open-ended question was asked to all respondents to obtain feedback and comments in
connection with the next EU Programming Period for 2014-2020. The following points were put
forward:
Extending definition of eligible costs: the current economic situation has put a strain on
businesses’ cash flow. For this reason the most common response was the desire for eligible
costs for grants to include energy costs, cost of machinery, staff training expenses and bank
interest.
Greater funding in relation to renewable energy: various respondents also indicated being
willing to invest in renewable energy but commented that initial capital outlay was a stumbling
block in this regard. It was therefore suggested that more renewable energy schemes ought to
be offered, with possible higher co-financing rates.
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5%
1%
Venture Capital* Business
Angels*