Northern SMEs should be cherished, argues investment analyst Alexander Draaijer. Simply because they significantly strengthen the regional economy, innovative strength and livability in the Northern Netherlands. But what funding opportunities does NOM actually have to offer healthy and mature SMEs? In this blog, Alexander answers.
Are you also there for the Northern Netherlands SMEs? I was surprised when an entrepreneur asked me that recently. Of course NOM is there for SMEs. Still, I understood the question. When we appear in the press it is often about our investments in startups and scale-ups. That can indeed give the impression that we are mainly there for these companies. But nothing could be further from the truth.
NOM's mission statement says it all: we want to sustainably strengthen the economic structure in the Northern Netherlands. And yes, here as elsewhere in the country, SMEs are a vital part of the regional economy. Because go figure: SMEs are responsible for the majority of employment and regional earning power. At the same time, companies tend to be innovative and flexible, allowing them to quickly anticipate customer demands and market changes. Moreover, SMEs tend to be locally rooted and contribute to resilience and social cohesion in their area of operation.
Greatly changed funding landscape
In order to grow, innovate or go green, it is important for a company to be able to find appropriate funding in a timely manner. But this is by no means simple. The landscape of funding and funding instruments has changed significantly over the years. In the past, an entrepreneur would knock on a bank's door for a loan as a matter of course. Since the credit crisis in 2008, however, banks have been subject to strict rules to limit risks. So they are more cautious when it comes to lending. Especially for smaller SMEs it is more difficult and expensive to get bank funding.
Digital and sustainable transition
Yet: access to finance is crucial for future-proof SMEs. Especially now that large investments are increasingly being demanded as part of the digital and sustainable transition, among other things. We see it as NOM's task to act on this and, where and when possible, contribute to a well-functioning funding landscape. This does not mean that every SME with a funding question can come to us. We only invest in mature companies with a proven market position and solid future prospects. They must also be innovative and/or distinctive and demonstrably add something to a more sustainable, smarter and healthier Northern Netherlands.
Numerous possibilities
NOM has numerous funding opportunities for mature SMEs. In subsequent blogs we will explain some of these individually, framed by an example from our own practice. The focus will be on companies that have ambitious growth plans, are entering a new phase or want to enter a new market. And thus seek appropriate funding for this. In other words, NOM can support SMEs in virtually any phase of their development. Whether it involves startup funding, selling the company, a management buy out/management buy in (MBO/MBI), a pre-exit, implementing a buy & build strategy or funding for developing new product-market combinations.
Growing and thriving
With our funding options, we want to help SME entrepreneurs realize their plans. After all, our goal is to strengthen the regional economy. And so we do everything we can to retain healthy and mature SMEs for the region and also help them grow and prosper from within the Northern Netherlands.