Small and medium-sized enterprises (SMEs) are central to the EU economy. Across Member States, many face tighter credit conditions and widening financing gaps. In this context, Cohesion Policy financial instruments are a key tool to mobilise private investment alongside grants. To inform the design of SME support in the post-2027 period, the European Investment Bank (fi-compass), on behalf of DG REGIO, has commissioned a study comparing the impact of financial instruments and grants on SME competitiveness and growth.

The study applies a counterfactual approach across ten Member States, linking administrative and firm-level data to estimate effects on key performance indicators. It uses econometric techniques such as Propensity Score Matching (PSM) and Difference-in-Differences (DiD) to measure the impact of support before and after intervention. A cost-effectiveness analysis complements the results, comparing the efficiency of financial instruments and grants in achieving measurable outcomes.
The study aims to deliver targeted and transferable results, accompanied by practical recommendations to guide future SME support under the post-2027 Cohesion Policy.

The study is led by t33 expert Giovanni Familiari and carried out by t33 in consortium with EY.