Belgium: financing smes and entrepreneurs 2016

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II.  OECD country and partner economy profiles of Sme and entrepreneurship financing 2007-14: Belgium

Belgium

SMEs in the national economy In 2013, SMEs in Belgium constituted 99.9% of total firms, the majority of which were micro-enterprises (94.3%). Only 0.1% were large enterprises.

Table 5.1. Distribution of firms in Belgium, 2013 By firm size Firm size (employees)

Number

%

All firms

560 659

100

SMEs (1-249)

559 842

99.85

Micro (1-9)

528 524

94.27

27 294

4.87

Small (10-49) Medium (50-249) Large (250+)

4 024

0.72

817

0.14

Note: Data includes financial enterprises with the exception of holding companies (ISIC Rev.4 sector 642).

Source: OECD (2015). 12 http://dx.doi.org/10.1787/888933332176

SME lending The National Bank of Belgium defines a small enterprise as one with an annual average headcount of less than 50 employees, a turnover (excluding VAT) of less than EUR 7.3 million and a balance sheet total of less than EUR 3.6 million. In 2012, the NBB has changed its methodology regarding data collection and analysis. Before 2012, credits lower than EUR 25 000 were not included in the NBB database. In addition, the reporting of banks has improved and is now more complete. The data illustrates that, except for a small decrease in 2009 and 2013, business loans to SMEs continually increased between 2007 and 2014. During this whole period, total outstanding loans to SMEs increased by 32.5%. However, in 2014, the outstanding stock of SME loans decreased slightly by 0.3% in comparison to the year before. Since 2008, business loans to SMEs generally increased at a faster pace than business loans to all firms. The business loans to SMEs as a share of all business loans therefore increased from 59.6% in 2008 to 67.8% in 2014. Between 2007 and 2014, SMEs made relatively more use of long term than of short term loans. The share of short term loans declined from 38.5% in 2007 to 28% in 2014. After an increase to 80.7% in 2009, the share of SME loans used to SME loans authorised decreased again to 78% in 2014. At 78% in 2014, the utilisation of available credits remained roughly constant over the 2013-14 period. FINANCING SMES AND ENTREPRENEURS 2016 © OECD 2016

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