Financing and venture capital as drivers of entrepreneurship and innovation in SMEs, an international analysis

Abstract

Innovation and entrepreneurship ecosystems largely depend on access to financing, particularly in the case of small and medium-sized enterprises (SMEs), which face higher levels of uncertainty and risk during their early stages of development. In this context, this study analyzes the relationship between venture capital and different business financing mechanisms, including SME loans and government loan guarantees. To this end, a comparative international analysis is conducted using data from five countries obtained from the OCDE database. Through a linear regression model, a strong relationship among the analyzed variables is identified, with an explanatory power of 96%. The results highlight the relevant role of government support in strengthening entrepreneurial ecosystems for innovation development.