15% of EU SMEs consider access to credit to be the second most pressing problem, second only to finding customers (Figure 3.1). The problem of access to credit for SMEs and micro-enterprises is at the heart of the EU's growth, employment and social inclusion policies. Financial conditions : Maximum loan amount is €25,000; maximum duration is 60 months; interest corresponding to 70 per cent. of the EU reference rate.
The first project of the association was to carry out a "test run" to develop a range of microfinance products and methods. MFIs active under the fund need accreditation from DMI and must cover up to 20 percent of defaults (first loss).
Microfinance and non-financial services
Much remains to be done to completely close the funding gap for small businesses and the self-employed. Identify useful courses and attend some (no excuses), trade associations should help assess the quality and relevance of the training offered. In 2007, the European Commission put forward in the communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions of 13 November 2007 – a European initiative for the development of microcredit to support growth and employment (the EC emphasized the importance of microcredit both with regard to the implementation of strategies that can promote growth and job creation and the promotion of social integration.
Due to the complexity of the European entrepreneurial system, it is now even necessary to provide the new entrepreneurs with skills and knowledge that they often lack. However, to provide such services to micro-entrepreneurs, the microfinance providers must carefully analyze their financial sustainability and viability. In fact, the cost of such services is unlikely to be borne by the commercial banking sector and existing experience at European level (such as the experience in Italy and France) has highlighted the importance of the public and non-profit sectors in the world. promotion of non-financial services related to microcredit.
The aforementioned Communication already emphasized that a greater use of the resources made available by the ERDF, ESF (European Social Fund) and FEASR (European Agricultural Fund for Rural Development) would be desirable to promote business support services (EC, 2007, p. 8 , 27). 24 A further step away from their centralization is represented by the adoption of the Small Business Act (EC, 2008) 25 by the European Commission in June 2008 within the wider Action Plan 2020 for businesses. The Small Business Act called on all EU member states to step up and promote a business-friendly environment for the development and growth of SMEs through the application of ten fundamental principles, which are intended to address, from an operational point of view, the differences between US and European SMEs in terms of growth and productivity.
In order to promote entrepreneurship, in addition to reducing bureaucratic, fiscal and administrative obstacles, the European Commission calls on member states to implement a long-term strategy that entrusts non-financial services with a central role.
The new European plans
At the same time, it is absolutely imperative and necessary to implement mentoring and support services for some specific target groups, such as women and immigrants who may be involved in the creation of start-ups, in order to improve their living conditions, combat economic and social vulnerability, support the entrepreneurial community in developing a systematic strategy that can facilitate a permanent and continuous development at all levels as well as the transition of entrepreneurial skills and activities between different generations. Within the same action plan, the European Commission detects a widespread tendency in the current market context to ignore or not recognize in the right way the entrepreneurial efforts and initiatives, as well as a lack of rewards for successful entrepreneurs (EC , 2013, p. 4). In addition to the programs included in the compulsory education cycle, the action plan highlights the need to use multiple methods to provide the youth with the above knowledge and skills; among them formal and informal education and voluntary work.
Promoting entrepreneurship learning modules for young people participating in the national Youth Guarantee programmes. Taking into account the second area of intervention, which is related to supporting the crucial phases of the business life cycle, the 2020 Action Plan highlights that 50% of new businesses fail in the first five years of life, often due to the lack of a business-friendly ecosystem that can facilitate their development and growth (EC, 2013, p. 10). 35 At the same time, however, the commission calls on all Member States to make full use of the newly introduced support opportunities for start-ups within the FEASR, following a model aimed at creating common systems that can promote professional exchanges between entrepreneurs. and visits to farms, also supporting business clusters, networks and cooperation programs in the agricultural sector, forestry, food industry and rural non-farm businesses (EC, 2013, p. 14).
The third area of action identified by the commission to promote change in the business culture concerns the cultural perception of entrepreneurs by the community, their role in society and the involvement of specific groups in the business world, such as women, the elderly, migrants, unemployed individuals and young people, all categories poorly represented in the population of entrepreneurs. Actions to be undertaken to support immigrants At European level Call on Member States to. The objective is to help the unemployed to be successful in the transition from unemployment to self-employment, increase the sustainability of their companies and provide specific support to groups that may request additional resources, such as young people or those who cannot be reached by the traditional channels to support businesses.
Actions that will be taken to support young people At the European level, it calls on member countries to.
Non-financial services: advantages and operational features
Types of non-financial services
The data collected in a survey conducted by Fondazione Risorsa Donna for the International Year of Microcredit in the Mediterranean Countries (Corsi) show a positive correlation between the integrated approach of microcredit (lending combined with BDS) and the rate of return. Orientation makes this possible. examining issues and resources available to users (both tangible and intangible resources) and verifying the feasibility of the business projects. After the disbursement of the loans and the start-up phase of the companies, end users are similarly assisted, for a period of at least three years, through the tutoring activity.
Design guidance End users are assisted in the development of their business ideas through initial advice on the discovered opportunities and difficulties Design Pre-assessment Analysis of business ideas, skills. including potential skills) and the attitude of the potential end-users Analysis of the appropriateness of the requests and the reliability of the applicants. Preparation of business plan Financial, language, IT skills Operational and management aspects of the micro-enterprises. Start-up Mentoring Mentoring of "senior" entrepreneurs to transfer experience. in the first three years of the company).
Start-up training Aimed at improving financial and. in the first three years of the business). Teaching Aims to detect financial and management issues affecting the enterprises. in the first five years of the business). Start-up networks Creating the cultural and operating context to facilitate the survival of enterprises through local networks.
Network represents a non-financial service across the stages before and after the disbursement of the loans.
Who funds the non-financial services?
It consists of creating local networks of public institutions, training providers, schools, businesses, chambers of commerce, employers' organizations, microfinance institutions, business service centers, operators and the like. The objective here is to create a healthy cultural and operational context necessary to promote entrepreneurship and facilitate the survival of businesses.
Partnerships in delivery financial and BDSS services to the microcredit beneficiaries in Romania
Case study 1. Partnership in the delivery of integrated financial and business development services: FAER NBFI and
FAER Romania 61 is currently one of the medium-sized MFIs specializing in financial and non-financial services for the rural agricultural sector. Eurom, together with other key stakeholders of the MF sector in Europe, contributed to the development of the European Code of Good Conduct for Microcredit. According to RoCredit's 2010-2011 annual portfolio report, 95 percent of loans are made to micro-enterprises.
The monitoring of the client's implementation of investment proposals and assessment of the beneficiary's performance during the loan period was carried out by RoCredit's loan officer. In this perspective, it is important to emphasize BDSS's innovative open-door approach in partnership. Presentation : The project assessment tool is presented by the consultant or credit officer using a PowerPoint presentation and the video projector; handouts of the presentation are available.
After the presentation of the project's assessment tool by the consultant or credit officer, the beneficiary becomes the main "actor" of the show. Transfer of the input data: After compiling the input data, the transfer to the tool is handled by the adviser or the credit officer. Impact indicators and case studies of successfully implemented investment/development projects alongside the 'client first' clinics are expected to be the MFI's main marketing tools in the coming years.
European Commission - Directorate-General for Enterprise and Industry (2006), Building Governance Capacity - Final Report of the Expert Group, p. European Commission (2007), Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions, European Initiative for the Development of Microcredit to Support Growth and Employment, http:// . European Commission (2007), Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions, European Initiative for the Development of Microcredit to Support Growth and Employment, p.
