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sector in Europe is in decline while the service industry and modern technology is steadily growing, micro and small enterprises have gained and are still gaining importance (Lämmermann, Zamorano and Guichandut, 2007). Enterprise category Headcount Turnover or Balance sheet total Medium-sized < 250 ! " 50 million ! " 43 million Small < 50 ! " 10 million ! " 10 million Micro < 10 ! " 2 million ! " 2 million Table 2.1: Enterprise Category (European Commission, 2007) The ! three major European Microfinance Networks share this view. One of their key recommendations for policy makers from their shared advisory report (CDFA, MFC, EMN, 2007) is to recognise that microfinance is broader than the provision of credit. It includes a range of other financial services, such as savings, insurance and leasing. However, other non-financial services such as BDS and financial literacy are needed to fight all aspects of social and financial exclusion. The European Networks argue that this will significantly enhance the operations of microfinance institutions (MFIs), which will, in turn, increase their impact, accelerating the inclusion process. Jayo, et al. (2008) made similar recommendations. 2.5.2 What are BDS? In 2002 the Micro-Finance Skills Project described BDS as all external non-financial support to enterprises that: • Increases operational capacity; • Provides access to markets; • Improves management skills; • Improves financial efficiency; • Provides access to networks and information. According to Lämmermann, et al., (2007) support services are especially important for microenterprises (enterprises with less than ten employees). Micro entrepreneurs often lack technical and managerial skills, information and market access, factors Elmar Hoogendoorn 21 Sustainable Microfinance
that are needed in order to transform a microloan into a competitive microenterprise. BDS address these constraints and comprise a wide variety of different non-financial pre- and post-loan services. Formerly BDS suppliers mainly focused on providing training and assessment services. However, in the last years, the range has broadened and now it also includes efforts to improve access to marketing services and information resources. In addition, infrastructure development and policy reform are now referred to when talking about BDS. According to Granger and Lämmerman (2009) BDS enable new entrepreneurs to face administrative procedures, implement accountancy and management systems, establish a bank relationship and identify commercial opportunities. In addition, they reduce the risk of non-repayment of the loan. For business support, many MFIs rely on volunteers. Since the development of microfinance in Europe, BDS have been regarded as an essential factor for the successful realization of a microloan. This stands in contrast to microfinance in developing countries, where credits are more often delivered without additional business support. 2.5.3 Lessons from the Past Molenaar (2009) argues that we need to learn from the past. According to him small and medium-sized enterprises (SME) have received significant attention in the seventies and eighties and many programmes have been experimented with. Special SME financing programmes were developed, as well as training and consultancy services. Evaluations of SME development programmes in the eighties showed the limitations of the methods and programmes; they did not reach large numbers of people, were considered costly and were offering all kinds of services to the SME sector in a supply driven, ineffective and inefficient way. The comprehensive evaluations of the small-scale industries sector in the late eighties (Keddie, Nanjundan and Teszler, 1988) provide an in-depth insight into the numerous pitfalls encountered in small and micro-enterprise development and promotion programmes. Their studies clearly spell out the weaknesses of the SME support systems adopted, programmes developed and policies pursued. These weaknesses led to supply-focused, often isolated support, reaching few people at a relatively high cost. Elmar Hoogendoorn 22 Sustainable Microfinance
Page 1 and 2: ! ! Sustainable Microfinance Balanc
Page 3 and 4: Keywords and Abstract Sustainable M
Page 5 and 6: Condensed Table of Contents ! ! Key
Page 7 and 8: 3.3 Lessons from previously develop
Page 9 and 10: List of Figures ! Figure I-1: Thesi
Page 11 and 12: List of Abbreviations BDS Business
Page 13 and 14: 1. Overview This chapter serves as
Page 15 and 16: In 2007, the Dutch Ministry of Econ
Page 17 and 18: collect information or seek specifi
Page 19 and 20: In some regions entrepreneurs are a
Page 21 and 22: • What different players in the D
Page 23 and 24: 2. Theory and Literature Review - M
Page 25 and 26: investors expect to gain from the f
Page 27 and 28: 2.4 Microfinance in (Western) Europ
Page 29 and 30: A MFI in the survival mode can bare
Page 31: The main factors that negatively af
Page 35 and 36: According to Lämmermann, et al. (2
Page 37 and 38: 2.5.6 Success of BDS Lämmermann, e
Page 39 and 40: The final conclusion relates to the
Page 41 and 42: Kaplan and international strategy c
Page 43 and 44: investments in learning will lead t
Page 45 and 46: • Derived from strategy; • Stim
Page 47 and 48: emaining drivers of the model are;
Page 49 and 50: Greatbanks and Tapp (2007) Manville
Page 51 and 52: that fail to effectively plan for t
Page 53 and 54: objectives (obligations) establishe
Page 55 and 56: Section II. Research Design The pre
Page 57 and 58: the use and usefulness of PMSs by s
Page 59 and 60: Figure 4.1: Step model of inductive
Page 61 and 62: 4.5 Methods of Data Collection In o
Page 63 and 64: All eight groups are interesting fo
Page 65 and 66: must take into account with the rel
Page 67 and 68: Section III. Findings and Discussio
Page 69 and 70: KH VS TB RL OE MB CS AP Total App.
Page 71 and 72: street and within an area of 500 me
Page 73 and 74: A final aspect that is exceedingly
Page 75 and 76: For the model Stefano (2010) propos
Page 77 and 78: know a lot about this topic', often
Page 79 and 80: 5.3 Summary Based on the empirical
Page 81 and 82: 6. Discussion 6.1 Introduction This
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6.2.4. Sustainability Entrepreneur
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6.2.9. Network & Business Developme
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The discussion is ended with a fina
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• Since the development of microf
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7.2.3 The Model: ‘Equally’ Bala
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cannot be controlled by the researc
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Appendix A - Thesis Proposal Accord
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1. Abstract The Thesis Project will
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efficiency, and aggressive enforcem
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entrepreneurs, compared to the curr
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The Thesis Project has several obje
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Based on the results from the liter
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8. Table of contents Preface List o
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References Armendáriz, B. 2009, 'M
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Work program March April Week numbe
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Figure B-2 Simplified Strategy Map
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Figure B-5 Comprehensive Performanc
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Organizational Development • What
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RL start at the core; 'why do you w
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Appendix E - Social ! KH jobs creat
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Appendix F - Financial ! Liquidity
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OE through friends and family and a
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MB that has to do with you financia
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RL You can test it, by launching fo
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Appendix I - Internal Business Proc
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OE he has an advantage and should f
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Appendix L - Network ! Professional
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Appendix M - Business Development S
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Appendix N - General BSC model ! Us
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Appendix O - Relation and Link ! Eq
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Appendix P - Most Important Financi
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Appendix R - Sustainability of Micr
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Appendix S - Qredits ! KH The main
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Bibliography Affleck, A. and Mellor
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Derban, W., Binner, J. and Mullineu
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the case of the tourism industry,
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Kunc, M. (2008), 'Using systems thi
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McKinsey & Company, p. 3., Availabl
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Shrader, C.B., Mulford, C.L. and Bl
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Woodworth, W. and Woller, G. (1999)
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