THE FINANCING METHODS FOR SMALL AND MEDIUM COMPANIES: COMPARISON BETWEEN ITALY AND GERMANY

The aim of this paper is to identify the appropriate financing methods for Small and Mediumsized Enterprises (SMEs) - with particular reference to alternative instruments to the bankingones- by comparing Italian and German companies. Based on a sample of Italian and German SMEs and thanks to a quantitative method, the research methodology was developed by the following logical steps: i) illustration of the informative matrix used, thanks to which it’s possible to identify different types of financing instruments (also those alternative to the banking ones) the most suitable for the analyzed companies; ii) adoption of the informativematrix to the sample of Italian and German companies; iii) comparison Italy-Germany. Severaldifferences emerged between Italian and German small and medium-sized companies, regarding the most suitable suggested financing forms. The degree of effectiveness of the financing instruments alternative to the debt appears influenced by the analysed space-time context. With reference to Italy, the effectiveness of these instruments is rather modest. With reference toGermany, it occurs the opposite scenario. The originality of the paper is linked to the currentprofound changes in both economic and normative terms. The research tries to lead companies to change their financial culture, also considering financial instruments alternative to the bank debt particularly suitable for small and medium-sized enterprises.