In an op ed for Business Review Europe, I challenge the conventional wisdom on the importance of the SME sector. The unintended consequence of low interest rates and “access to finance” is the creation of “Ponzi” companies, and forced savings on the part of well-run businesses. When credit dries up, those mistakes are revealed.
The goal shouldn’t be to promote any particular size of company, but to provide the basic foundations upon which all forms of entrepreneurship can flourish: simple, low and stable taxation; no unnecessary red tape; and secure property rights.
For more: No sympathy for Ponzi SMEs – Business Review Europe.
