Luc Haegemans, Changing the Mindset and Strengthening the Capacity of Financial Institutions
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Transcript of Luc Haegemans, Changing the Mindset and Strengthening the Capacity of Financial Institutions
An innovative enterprise to promote
social cohesionLuc Haegemans
microStart: origins
microStart: common thread
What if we were to set up a social
enterprise?
microStart: Belgian branch
microStart: pilot project
• Cooperative company with limited liability and a
social purpose (credit)
• Non-profit organisation (support and
volunteering)
• Initial capital: EUR 1,210,000
• Board: 5 members (2 BNPPF, 2 Adie, 1 EIF)
• 2 branches in Saint-Gilles and Schaerbeek,
Belgium, for 2 years
• Foreseeable expansion in Belgium in 2013
• Goal is to continue the project in the long-term
microStart: member contributions
• contributes 78.5% of the capital,
refinances micro-loans and
mobilises pool of volunteers
• contributes 20.5% of the capital and
guarantees 75% of the loan portfolio
free of charge
• contributes 1% of the capital and 20
years of expertise
microStart: aims
• Provide financing for individuals excluded from
the banking system who wish to set up or
develop an independent economic activity
• Support clients throughout their projects by • Support clients throughout their projects by
providing tools and assistance that is tailored to
their requirements
• Promote changes to the regulations governing
the creation of new businesses in Belgium by
using microStart clients as an example
microStart: target group
• Long-term unemployed, workers with little or
no job security, recipients of social benefits
• Self-employed
• Workers in the informal sector• Workers in the informal sector
• Financial Plan less than EUR 15,000
• Average loan of EUR 4800
� small-scale activities and projects
microStart: operation
• 2 branches: one manager & two advisors
• 1 back office
• Active canvassing of clients, word of mouth,
purchasing advisorspurchasing advisors
• Customer service and responsiveness
• Decision-making criteria focussed more on the
person than the project
• microStart borrows in order to re-loan (BNPPF
line of credit = EUR 1.3 million)
• Interest and commission earned on products
must cover the operational costs
Economic Model
• Capital covers the initial years of losses
• Productivity, efficiency and strict repayment
• Non-profit organisation: public service
promoting integration and volunteering
Initial results
Overall statistics on 30 October 2011:
� 460 entrepreneurs met
�70 projects already financed
�More than 130 partners met�More than 130 partners met
�Various promotional activities within
communities (local festivals, markets, etc.)
� Average micro-loan = EUR 4900
� 90% of entrepreneurs from minority groups
microStart: clients
Julien, market stall seller Catalina, Latin-American
grocery store owner
Regulatory framework in Belgium
• Immediate loss of social income
• Amount of social security contribution
• Lack of public solutions for equity capital
contributioncontribution
• Strict regulations governing the establishment
of self-employed businesses and certain
professions
Thank you for your time !