… The problem in Europe is that the banks dominate the financial sector and they are becoming more and more cautious, partially because of new regulations.
They prefer to finance the purchase of existing residential property rather than start-up businesses. This is one of the main reasons property prices are rising again throughout most of the developed world.
A similar trend has developed in New Zealand, where the banks are committing an ever-increasing percentage of their lending to residential property.
New business start-ups have to rely on a wide range of cash sources, including family and friends, wealthy individuals, government grants, venture capitalists, stock exchange IPOs and crowdfunding.