Adie - microcredit to create your own employment

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The 3 missions of Adie

To finance persons who have a business project, but who do not have access to the banks.

To support before, during and after the business start.

To contribute to the improvement of the environment for business start-ups and microcredit.

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A public in a precarious situation

Adie adresses all persons with a project to start or develop a business and who do not have acces to classical bank

credit

Beneficiairies of « Revenu Minimum d’Insertion » (long-term unemployment benefit),

the unemployed, Independent workers, Salaried persons

Situation socio-professionnelle

Chômeurs34%

Travailleurs indépendants

10%

Autres3%

Salariés4% RMI et Minima

sociaux49%

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Very different educational levels

More than 20% of financed clients are illiterate or know hardly to read, write or count.

Levels of education: 9% long higher education; 4% illiterate; 17% can hardly write, read and count; 13% University degree: 16% A-levels; 4% secondary school; 37% vocational training/technical training

Niveau de formation

Secondaire, Lycée4%

Supérieur: Bac16%

Bac +213%

Supérieur long9%

BEP/CAP37%

Lire, Ecrire, Compter

17%

Illettrés4%

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Adie : In the city or at the countryside…

2/3 of Adie’s activities take place in the urban area An increasing part of clients from the suburbs (banlieu)

Areas of residence: 7% travellers (Roma) - 18% disadvanted neighbourhoods - 50% urban areas - 25% rural ares

Zones d'habitation

Zone urbaine50%

Zone rurale25%

Zone politique de la ville18%

Gens du voyage7%

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Adie : sectors of activity

The majority of projets are in the trade and service sectors

Some examples of professions : infographiste, edificial painter, florist, estheticien, ironing at home, wine merchant, electrician, trader on the market, innkeeper, architect, snail raiser, photographer…

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Adie : the regional network and the human resources

Present all over France(métropolis and overseas territories)15 regional directions131 branches, particularly in precarious areas380 « permanences » (stand-by)370 employees and 1000 volunteers

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Adie: the organisation of a regional direction

Président de comité de crédit(bénévole)

Conseillers crédit

POLE CREDITResponsable Crédit

PÔLE SUPPORTConseillers accueil

Conseillers accompagnement(salariés)

Chargé d'accompagnement(bénévoles)

POLE ACCOMPAGNEMENTResponsable accompagnement

DIRECTION RÉGIONALEDirecteur régional

SIÈGE

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Credit pole : the financial tools

INTERNAL TOOLS > Microcredit

>Max amount : 5500 euros

>Period : 24 months

>Interest rate : 9,71%

>Guarantee : solidarity warrantee - 50% of the loan amount

>Solidarity contribution : 5% of the loan amount

>Prêt d’Honneur (honor loan)

>Max amount: 5000 euros

>Period : 24 mois

>Interest rate : 0%

>Solidarity contribution : 5% of the loan amount

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Credit pole : the financial tools

EXTERNAL TOOLS

> Management of State programmes and programmes of the regional authorities depending on the regions of France

> Bonuses

> Reimboursable advaces

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Credit Pole : The process

RECEPTIONBy telephone 15

minutes

APPRAISAL1 MEETING- 1H

DECISIONCredit Commitee

1/week

Receptionist : selects- eligibility-maturity-financial need

Loan officer : analyses the risk - the person- the projet- the reimboursement

President of the credit committeeRegional director / Credit responsible : the committee decides over the loan provision

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Credit pole : a computer tool

GAIA : A tool that allows to treat each step of the process

informatically. > Collection of the information about each new entrepreneur

> Follow-up of the evolution of his/her progress at Adie

> Edition of the contractual documents related to the disbursment of the credit

> Follow-up of the reimboursement until total pay-back

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Where do our clients come from?

The sending organisations :

> Standard networks :• national unemployment office, network of social workers,

chambers, technical partners, press

> Commercial approach• Development of mouth-to-mouth• Handing out flyers on the market

> Internal support• Renewed loans

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Credit pole : the funding

The funding of credit resources: > Banks : about 40 financial establishments> Since 4 years, habilitation of Adie to borrow for onward

lending to new entrepreneurs

• Simplification of loan management

• Faster disbursment periods

• Shorter information periods about the reimbursment

The funding of the guarantee : • It is ensured by the Guarantee Fund for organisations in

the field of integration through economy (FGIE), which is itself fed by the Social Cohesion Fund, the European Investment Fund (EIF) and the partner banks.

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Adie : the results

Number of microcredits in 2007 : 9 853 Average number of jobs per project : 1,2 Rate of sustainability of enterprises : 65% after 2

years Integration rate (taux d’insertion) : 80% Reimbursment rate : 94% Number of jobs created since its foundation : 54

775 Microcredits provided by Adie since 1989 : 53

600

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Support pole: Objectifs

To promote autonomy, professional integration and the social situation of funded persons

To reinforce the sustainability of the entreprises, support and develop the activity in order to anticipate and respond to the difficulties and develop the income

To develop microcredit

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Support pole: Structuration

Pre-business start-up support:> Responding to bargaining offers

> Adie target group

> Short and long-term support

Post-business start up support: > Adie clients

> Offer of services

> Network of volunteers

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Support pole: the human resources

Employees> Bargaining offers

> Long-term support

Vomunteers : > Pre business start-up support

> Post business start up support

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Support pole: How?

An available and diversified service offer, adapted to te needs of the new entrepreneurs realised through :

> Resource Centre : complete support offer

=> Objectif of 40 resource centres until 2009

> Services of proximity : Bien Démarrer (« Get off to a good start »), Adie Contact and Perm’Adie

> Complementary Services : specificity of professions, pre-business start-up support…

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Adie : key steps during the last 20 years

1989 : Creation based on the model of the « banks of the poor » that have developed in the South since the end of the 1970s: Grameen Bank au Bangladesh.

1990 - 1994 : pilot phaseAdie develops its methods. It borrows from its own funds.

1995 - 2000 : development phaseThe association borrows in partnership with the banks and develops its network of regional directions.

2001 - 2005 : institutionnalisation phaseAn amenment to the bank law allows Adie to borrow for onlending.Institutional recognition of independent work and business start as a way of intergation.Recognition of public utility.

2007 : Adie provides its 50 000th microcredit 2008 : Adie celebrates its 20th anniversary

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The environment of business start in France

Why does Adie exist?

> The role of the banks> State support> Support structures

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Adie : Perspectives in France

Adie wishes to remain an entry gate to the traditional bank circles and support the development of other bank and non-bank institutions in Europe.

Adie envisages to progressively cover its cost of loan management in order to sustain its activity.

The cost of support will remain subsidised. The potential demand of microcredit in France is

estimated at 30 000 loans per year. This demand can be multiplicated by ten provided the institutional environment becomes more favorable.