Press release | Date: 2018-03-02 | Ministry of Trade, Industry and Fisheries
According to a new report, there is a potential for improvement in the capital market, for example when it comes to connecting entrepreneurs and investors.
‘Businesses all over the country, in all industries and in every development phase, needs access to loans and investments. This report provides a good basis for determining how the capital market works, and whether it could or should work even better,’ says Minister of Trade and Industry Torbjørn Røe Isaksen (Conservative Party).
Last year, in follow-up of the white paper A greener, smarter and more innovative industry, the Norwegian Government asked an expert commission to consider Norwegian businesses’ access to capital. Today, the Minister of Trade and Industry received the report.
‘A prerequisite for creating a sustainable welfare society is that it is attractive to establish, run and develop business activities in Norway. It is important that we facilitate restructuring and development in business and industry. At the same time, we have to contribute to the growth of new and promising enterprises. A well-functioning capital market is an important part of this,’ says the Minister.
Do Norwegian enterprises get the capital they need to grow and develop? Are they given loans when what they need is long-term investors? Are owners good enough at developing their businesses? Are public policy instruments for start-up and growth companies relevant? How will the capital market have to change in order to contribute to restructuring in business and industry? These are some of the issues that the Commission has looked into.
The Commission’s overall message is that the Norwegian capital market mainly works well. The majority of profitable businesses, or businesses that are expected to become profitable, have access to financing at a cost that reflects their risk. The Commission nevertheless proposes measures to improve the market, for example when it comes to connecting entrepreneurs and investors. How effective such connections are depends on information and how easy it is for the parties to find each other.
The Commission was led by Aksel Mjøs, associate professor at the Norwegian School of Economics and chairman of the board of the Kavli Trust. The Commission consisted of the chair and eight other members with good insight into and extensive experience from different roles in the capital market.
The Government will now review the Commission's report and recommendations