EMN 2008-2009 Overview - Réseau Européen de la Microfinance

Introduction
1
Microfinance in Europe is gradually being consolidated as an essential tool of
social policy, for the promotion of self-employment, microenterprise support
and the fight against social and financial exclusion. This is demonstrated by the
initiatives that the European Commission has launched, such as the Jasmine 4
initiative and the European Microfinance Facility for Employment and Social Inclusion
(Progress Microfinance Facility 5 ), to promote and support the development of the sector.
However, since the economic and financial crisis began in 2008, many of the microfinance
models in various countries in Europe have been redesigned with the goal of adapting to the
new challenges they face.
In January 2010, Fundación Nantik Lum launched the fourth EMN survey of the microcredit
sector covering activity in 2008 and 2009. The purposes of this edition of the survey are to
track changes in the industry; deepen the understanding of core issues such as scale, outreach,
sustainability and financial performance; uncover future plans for growth; and ask about
funding sources, marketing and impact.
One of the most fundamental changes in the sector during this period is the integration of
the personal microcredit with notable intensity. Personal microcredit is not usually designed
to permit access to financing for the start-up of new businesses, but to help families confront
specific needs, at times with greater priority, that have emerged in this new economic and
financial context.
This year’s survey has a record participation. This year, a total of 432 institutions in 28
European countries were contacted, of which 170 institutions in 21 countries responded
(see the Appendix for the complete list). Of the total MFIs that responded to this version, 97
participated for the first time. The increase in the number of responses is believed to be for
two main reasons: first, the increasing interest that various institutions have demonstrated in
the European sector which has led to the participation of new actors in the microfinance field,
and second, the active work of 10 country coordinators that collaborated in the collection of
data in different regions. As a result, over recent years, a deeper understating of the European
microfinance sector and the different actors involved has been obtained.
4 JASMINE stands for “Joint Action to Support Microfinance Institutions in Europe” and is a pilot initiative which has been developed by the
European Commission (EC), the European Investment Bank (EIB) and the European Investment Fund (EIF) to provide effective support for the
promotion of microcredit in the European Union.
5 PROGRESS is the EU’s employment and social solidarity programme implemented by the European Social Fund (ESF). It was established to
financially support the implementation of the objectives of the European Union in employment, social affairs and equal opportunities, as set out
in the Social Agenda.
11