European SMEs: new business logic, new financing logic, 21 April 2016, European Parliament, Brussels

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Understanding markets and firms in today’s financialised world in both business and political economy terms requires analysis of the new strategic management, finance and accounting tools, which can be demanding and organizationally challenging.

Firms interact with a complex network of primary and secondary stakeholders to secure the value proposition of a firm’s business, business model and market.  This value proposition is itself a complex amalgam of value creating, value capturing and value manipulating arrangements with stakeholders.

Current financial reporting by function of expenses and the central organising objectives of the accounting conceptual framework conceal firm-stakeholder relations and their impact on reported financials. Therefore, financial reporting would require a reorientation in the accounting conceptual framework and standards, reporting to investors and other stakeholders.

Moreover, the gradual mentality-transformation of the European firms which slowly move from traditional bank financing solutions to capital markets financing, and the accompanying expansion of new tools that reduce both the cost of capital and the related transaction costs, poses questions about how the future capital markets will accelerate the materialization of the new business planning logic.

This conference will touch upon the IFRS for SMEs standards, alternative stock markets for SMEs, changing business models, new type of markets and financing fitting classical actors like banks, or EU funding and new one such as VC and crowdfunding.

Organised by Members of the European Parliament’s Economic and Monetary Policy Committee, Theodor Stolojan (EPP) and Eva Kaili (S&D.

Commissioners Jonathan Hill and Jirki Katainen are also invited to participate in the conference along with high level Officials of the European Commission specializing in SMEs and Financial Affairs.

 

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