Published 21 October 2019

Will Almi’s lending activities help companies grow?

What is the growth effect of the lending activities that the wholly owned State company Almi Företagspartner AB (Almi) offers Sweden’s small and medium-sized companies? And where do Almi’s lending activities have the most benefit? Growth Analysis has evaluated this.

We have also mapped out how equivalent governmental systems are structured in some comparable countries. The purpose is to provide base data for decision-making in order to rationalise and develop or reassess the government’s initiatives to promote the supply of capital for business.

Main results

Our study shows that:

  • Almi’s lending activities seem to identify the right target group based on the organisation’s undertaking. The companies that are granted loans are small companies with an average of six employees. The companies have lower productivity, less equity and higher debts
  • Almi’s loans have a lasting, positive effect on the companies’ net sales and labour productivity
  • those companies that receive loans from Almi invest significantly more than the control group in the same year, and also somewhat more the following year. This effect is not sustained. The companies’ investments are significantly lower in subsequent years
  • the companies do not increase the number of employees more than the control group.

We have also analysed the effects in different regions and differences between established and newly-established companies. This analysis shows that Almi’s lending activities:

  • have the greatest effect in companies that operate in metropolitan municipalities and in densely populated municipalities close to a large city
  • result in companies in metropolitan municipalities increasing the number of employees by 1-2 people on average
  • result in newly-established companies also increasing the number of employees in remotely situated urban municipalities and in rural municipalities. The results for newly-established companies are, however, less certain because of the volatility of these companies.

Title
Will Almi’s lending activities help companies grow?

Serial number
Report 2019:03

Reference number
2018/083

Download the swedish reportPDF