SME Investment in Hungary: Financing Conditions, Development Needs, and Structural Misalignment

Hortoványi, Lilla (2026) SME Investment in Hungary: Financing Conditions, Development Needs, and Structural Misalignment. PÉNZÜGYI SZEMLE/PUBLIC FINANCE QUARTERLY, 72 (2). pp. 51-66. ISSN 0031-496X (nyomtatott); 2064-8278 (online)

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Abstract

This study aims to identify the factors that explain the limited implementation of intangible and digital investments among Hungarian small and medium-sized enterprises (SMEs). The dominant explanation attributes investment restraint primarily to financing constraints; however, recent evidence suggests a more nuanced picture. Scientific and practical relevance: The paper introduces a conceptual framework – the financing alignment problem – contributing to the renewal of SME finance literature and offering direct policy implications. The analysis is based on multi-stakeholder expert discussions, qualitative interviews, and systematic review of secondary sources. The findings indicate that investment restraint is not primarily driven by a lack of access to finance, but by the limited alignment between intangible investments and the prevailing logic of financial intermediation. Stimulating SME investment requires a better fit between financing instruments and firm-level development needs.

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