Oddly enough, although the UK is a magnet for inward investment because of the stringency and transparency of its property and commercial law, it is only 'middling' by this particular measure. And it's arguable that SME's in the UK are at a disadvantage as a consequence. It's generally held that enhanced protections in this area remove the overall degree of companies' credit constraints. And given that SME's are already at a significant disadvantage compared with larger enterprises in accessing finance, the establishment of collateral agencies and credit bureaus - relatively common in the US - can reduce obstacles to SME's obtaining finance.
This is a real issue in both the UK and Europe as a whole, although given the lobbying power (and protectionist impulses) of globalised entities it's perhaps unsurprising that governments - despite the rhetoric - aren't attaching enough importance to promoting the interests of start-ups, small-scale manufacturers and independent traders.
