On 29 July 2025, EFRAG received a letter from the EC outlining the European Commission's initiative to enhance the accessibility and comparability of financial information for Small and Medium-sized Enterprises (SMEs) within the EU. It highlights the crucial need for high-quality, standardised data to attract investors and facilitate better access to finance for these businesses, especially innovative and fast-growing ones. The letter proposed the development of a voluntary, KPI-based reporting template for SMEs, which would be accessible via the European Single Access Point (ESAP), to streamline information sharing and reduce administrative burden.

EFRAG was requested to assess stakeholder interest in this initiative, considering the potential costs and benefits for both SMEs and investors, and to provide its report by June 2026. This effort aims to harmonise reporting practices without increasing burdens, ultimately benefiting the EU economy's competitiveness.

The letter requests that EFRAG conduct a survey or consultation with both SMEs and investors to assess the interest in this initiative.

Specifically, EFRAG is asked to:

  • understand the views of both potential preparers (SMEs) and users (investors, banks, etc.) regarding such a disclosure;
  • assess the possible content and structure of the proposed template.

EFRAG was requested to submit its assessment in the form of a report by the end of June 2026.

Outreach activities

EFRAG conducted targeted outreaches in a form of semi-structured interviews, aiming to cover various stakeholders, both preparers and users of financial information, in different areas of the EU.

In addition, in November 2025, EFRAG issued two surveys. The survey for SMEs and startups focused on the needs and obstacles these companies face in securing finance. The survey for finance providers aimed to identify the key challenges investors and finance providers face in finding and assessing potential European SMEs and startups investment targets.

Current stage - consultation

Based on the feedback collected from more than 100 stakeholders through various outreach activities and review of the relevant literature, EFRAG has published its draft Assessment Report on 2 April 2026. The draft Assessment Report outlines that financing challenges affect all SMEs, but are most significant for startups and fast-growing innovative companies in the EU. A proposed voluntary template (on ESAP) could help improve access to finance, but its success depends on interest from both SMEs and finance providers.

Smaller Initial Public Offering (IPO) facilitators and mergers & acquisitions (M&A) advisors are interested in the template, as it could help them identify entities that are ready for listing or suitable for mergers and acquisitions.

Startups and fast-growing companies expressed conditional interest, particularly when facing financing challenges, and provided that the template would not be costly to complete, and would not require the disclosure of commercially sensitive information. A voluntary template on a platform other than ESAP might further reduce the cost of providing the information.

Large private equity and venture capital providers also showed little interest, preferring established channels, such as commercial databases, pitch events and proactive requests from startups and other potential investees.

Smaller finance providers, including business angels, small VC funds, and crowdfunding platforms, may find the template useful for cross-border investments. However, its appeal is limited for most business angels, who tend to operate locally.

Some public agencies providing financial aid or advice to SMEs and startups also expressed interest, seeing the voluntary template as a source of information about companies they could assist or assess for eligibility for financial aid.

When it comes to banks, they are unlikely to use the template. They cited the need for more information for credit assessments, their local focus, and limited proactive client outreach. Banks currently provide most SME financing, but cannot offer sufficient support to startups and fast-growing, innovative companies.

The draft Assessment Report also provides some insights about possible structure and content of the voluntary template, should the EC decide to proceed with this initiative.

Stakeholders are invited to provide feedback on the report by 27 May 2026, either through a written comment letter or an interview with EFRAG project team.