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.

Draft Assessment Report

Based on the feedback collected from more than 100 stakeholders through various outreach activities and review of the relevant literature, EFRAG published its draft Assessment Report on 2 April 2026. Comments were requested by 27 May 2026. During the consultation period, EFRAG continued its outreach activities.

Assessment Report

EFRAG issued its final Assessment Report on 30 June 2026. EFRAG assessed that there was insufficient for the template to be a meaningful and impactful tool.

The main group of financing providers and financing facilitators expressing an interest in using the voluntary template comprised smaller investors (including smaller venture capital firms) and IPO advisors screening across borders for potential startups and scale-ups in which to invest or advise.

Banks, insurance companies, pension funds, business angels, incubators, accelerators, university technology transfer offices, larger (later-stage) venture capital firms, larger private equity funds, and larger IPO and M&A advisers were generally (with some exceptions) not interested in using information that would be available through the template.

SMEs and startups in need of financing were interested in using the voluntary template when it would enhance their chances of obtaining finance and when the benefits outweighed the associated costs and efforts. However, given that only a limited number of financing providers were interested in using the template, most SMEs would likely have little to gain from using it.