Guide / Toolkit

Designing Microfinance Operations in the EU: A Manual on How to Build and Implement Microfinance Support Programmes Using the ESF

Enabling access to finance for entrepreneurs from vulnerable groups in the European Union

This guidebook aims to help European Social Fund (ESF) and European Regional Development Fund (ERDF) Managing Authorities organize the implementation of a microfinance scheme as part of their inclusive entrepreneurship policy. It has been developed by the thematic group Access to finance of the Community of Practice on Inclusive Entrepreneurship (COPIE) in the ESF.The guidebook follows a step-by-step approach through the main decision points in the policy cycle. It also analyses existing microfinance programs from COPIE partners and other regions and presents examples of what works. Conclusions include:

  • Responsibility for microfinance stretches over several ministries and government departments, all of whom need to work together with a dedicated strategy, budget, and unit;
  • Design and evaluation of a microfinance scheme is crucial for its success;
  • One of the main challenges for microfinance programs is to become independent of public aid;
  • ESF-funded schemes provide the opportunity to build up the capacities of financial intermediaries;
  • Financial sustainability is an illusion for microfinance providers that reach out to the most disadvantaged people;
  • Public subsidies and business support will continue to be needed for credit-related advice and loan follow-up of such client groups.

About this Publication

By Maas, B., Lämmermann, S.
Published