Follow our microfinance actions
01.07.2019 | Sustainable finance
In 2018, 15.5% of working people between the ages of 15 and 64 in the 28 countries of the European Union were "self-employed". In Europe and all around the world, micro-entrepreneurship, driven by its promise of independence, has reached a veritable turning point. How can the big players in banking such as BNP Paribas support this phenomenon?
And this trend isn't just within France's borders.
In 2018, 15.5% of working people between the ages of 15 and 64 in the 28 countries of the European Union were "self-employed". A statistic that climbs to 34% for Greece and 50% for Colombia.
The financial needs of these micro-entrepreneurs are well known: initially, their priority is to obtain small loans fast when setting up their structure. Then, in the first few years of business when the disconnect between business financing and cashflow can be huge, the challenge is to fund WCR by borrowing.
BNP Paribas is mobilising all its resources all over the world to help micro-entrepreneurs launch and develop their businesses, either directly through loans, or indirectly through partnerships.
The Group also finances some 30 MFIs worldwide, notably in emerging countries such as Brazil, Colombia, Morocco, Senegal and Vietnam. The loans granted run from €500,000 to €10 million.
In addition to MFI loans, we intervene via direct financing through microfinance funds such as RIF II, which invests in 22 MFIs mainly in countries where the Group has no presence.
Although micro-entrepreneurs have a thousand faces (professional retraining, reintegration into the labour market, etc.), they all have to find ways of financing themselves. This is why we have such a wide range of partnerships, so we can meet each micro-entrepreneur on their home ground so to speak.
In France, we are working with iconic players in the business sectors with the most micro-entrepreneurs. The partnership between Uber and BNP Paribas Personal Finance around a model specifically for vehicle acquisition is one illustration of that.
We have also set up a line of credit for Adie (Association for the right to Economic Initiative), which helps people distanced from the labour market to create businesses. In 2016, we developed with this Association a Social Impact Contract, to support people living in remote rural areas in their professional reintegration and business creation projects.
Furthermore, through funds such as BNP Paribas Social Business France or the socially responsible Multipar range, part of the money committed, which varies depending on the investment product, is invested in businesses with a strong social impact (notably MFIs). In France, BNP Paribas Asset Management's socially responsible funds helped to finance 22,000 micro-entrepreneurs in 2017.