These differences between the companies in the FIGURE 6.24
UK and the Danish schemes can be a result of the
Evolution of value added
size of the companies. The companies in the EFG
180
scheme are much bigger than companies in the growth-guarantee scheme.
160
6.2.3 Survival rate of UK companies that re-
140
ceived loan guarantees
120
In this section, we will present survival rates of the 100
companies that received guarantees from the EFG and the SFLG schemes in the UK.
80 60 t
t+2
The survival rate of the companies in the UK schemes are more than 10% lower at year three
SFLG 2006-2009
compared to the companies in the Danish growth
EPG 2009-2012
guarantee scheme, see Figure 6.25. This could be
Growth guarantee 2009, 2008 and 2009
because the maximum size of the loans is much
Get-started loan 2007, 2008 and 2009
lower than in the growth guarantee scheme. Com-
Source: Marc Cowling, Enterprise Finance Guarantee Survey, DGF, Statistics Denmark and DAMVAD Note: Get-started loans and Growth guarantee is an average of the treatment year 2007, 2008 and 2009
pared to the get-started-loans, the UK companies do better but this is because the get-started-loan scheme is only for companies in the very early stage and thus cannot be compared to the EFG and SFLG
When comparing the UK EPG companies to the companies
in
the
Danish
growth-guarantee
scheme, the number of full-time employees dropped for companies in the Danish scheme compared to a strong growth in the number of employees in the EFG scheme. Sales increased in the Danish case but not by as much as the large growth of companies in the EFG scheme. Only value added resembles the evolution in the UK scheme. It is important here to notice that the Danish data is an average of three treatment years where the UK is for only one treatment year. Compared to the SFLG scheme, the growth-guarantee companies performed slightly better, but the performance is close to equal. The firms in the get-started-loan scheme did substantially better than all the other schemes in all three performance indicators, but this may be a result of the lower starting point, and the lower survival rate.
100
EVALUATION OF THE DANISH GROWTH FUND | DAMVAD.COM
scheme, which also was evident in the previous section when comparing key figures.