Microfinance is a viable method to support individual’s ideas for economical self-sustaining where micro finance plays a major role in the process of self-determination.
Microfinance is a relatively new and innovative business model of approach that stimulates and enhances creativity to find sustainable alternative solu-tions to social challenges.
Interest has increased significantly in recent years for this operative tool in terms of social and financial inclusion of disadvantaged groups who are confined outside the labor market. Capacity building and coaching incorporated with micro loans provides a humble growing environment for sustainable small business and innovation that adds job opportunities to the market.
Microfinance in Europe
When the term microfinance is mentioned in Sweden today, many relates it with Muhammad Yunus who in 2006 won a Nobel peace prize together with Grameen bank for extending micro loans to the women in Bangladesh. Many are still not aware of how popular the concept of microfinance is in Europe, neither in the East nor in the West. Micro finance is hereby regarded as a key solution to joblessness and other systemic marginalization.
European Microfinance Network (EMN) is a non-profit umbrella organization with 91 members in 21 European countries. Since 2008 Neem is represented on EMN's board.
Unemployment affects not only individuals but also the general economical growth. Micro finance is a proven effective approach to reducing unemploy-ment, creating job opportunities, economic growth, while promoting an integrated social inclusion.
There is a continuous documentation of the socio-economic impacts generated by the micro finance. The following municipalities represent the best micro financing pilot project as seen so far: Katrineholm Vingåker, Nyköping, Norr-köping, Skövde and Fisksätra.
The table below shows the expected socio-economic effects from five started companies on a total amount of 4,438,334 SEK. The following consideration were taken:
- New production units
- Increased consumption
- Increased revenue from taxes
- Reduced social benefits
According to statistics from the Industrial Development Center,
IDC Sweden. Examples from December 2009, Katrineholm.
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