Description

Small and medium-sized enterprises (SMEs) play a central role in Lithuania's economy but face persistent challenges that constrain investment, productivity, and firm growth. Limited access to finance, alongside labor and skills shortages, weighs on SMEs' ability to scale up. This paper reviews these challenges using firm-level survey evidence and examines both demand-side and supply-side factors that limit SME financing and expansion. The analysis points to the need for a holistic reform agenda that deepens SME financing – by mobilizing long-term savings, expanding non-bank financing channels, and strengthening EU capital market integration – complemented by policies to ease labor and skills constraints.

More publications in this series: Selected Issues Papers