1. The role of micro-credit in promoting entrepreneurship and its effects on social inclusion
Maria Nowak, Co-founder and
President of Adie (France) and of
the European Microfinance Network
Co-founder and Member of the
Board of the Microfinance Centre
for Central and Eastern Europe
Open days
Brussels October 9, 2007

2. Historical perspective
The development of capitalism created a separation between the economic and the social sector run by the Welfare State
This separation is one of the major causes of social exclusion
One of the solutions is to bring back together labour and capital at the bottom level of entrepreneurship
Microcredit provides an opportunity to socially excluded people to re enter the productive sector by creating their own job

3. Access to credit Capitall Labour Creation of wealth Welfare Excluded
The Welfare State takes care of excluded from the market economy

4. Access to credit Capital Labour Creation of wealth Welfare Excluded
Access to capital allows the excluded to participate in the creation of wealth

5. The Case of Adie : NGO created in 1988
Mission: provide financial and non financial services to unemployed
and social aid beneficiaries creating microenterprises
Coverage: all national territory ( 119 branches and 380 contact points)
Services provided:
Financial services : loans, quasi-equity loans
Non financial services : business and marketing advice, administrative
support, etc.
Financing:
loans funds  banks
non financial services  government, local governments, ESF

6. Results : microcredit
Number of micro-loans disbursed since 1989 :
Number of micro loans in 2006 : (average : 3000 €)
in 2007 : 9 000
Number of active clients :
Default rate 2006 : 6,7%
Loss rate 2006 : 3,2%

7. Results : business development services
Number of new enterprises created since 1989 :
Number of enterprises to be created in 2007 : 7 500
Survival rate after 2 years : 64%
Inclusion rate : 75%

8. Loans granted by Adie

9. 22 regional offices
119 branches
380 contact points
350 staff members
1100 volunteers

10. Social performance indicators
Target population
Adaptation of the financial services to the needs of the clients
Provision of business development services
Improvement of social and political capital of the clients
Social responsibility of the Microfinance Institution
Financial sustainability consolidates social performance by providing
permanent access to credit to deprived groups

11. Impact of microcredit on social inclusion
Contributes to growth by creating jobs, developping demand and
reducing the burden of unemployment on economy
Improves social cohesion and integration of ethnic minorities (Roma,
immigrants) by economic inclusion
Develops human capital by promoting self-confidence and
entrepreneurship and creates a future for all segments of population

12. The support of the European Social Fund
The role of ESF is most important for :
Financing business training and support for the sel-employed
Financing together with the Regional Development Fund, the EIB
group and the banking sector the Microfinance Institutions
Promoting the Action Plan for Development of Microcredit

13. Thank you !