Microfinance in France

Microfinance, a concept born in Developping Countries

Adie was created in 1989. Our source of inspiration was the "Banks of the Poor" that grew in developing countries in the seventies, and more particularly the Grameen Bank in Bangladesh.

The right to economic initiative

To be effective, the Right to Economic Initiative requires access to capital and removal of administrative constraints for creating self-employment. Our mission is to finance and support the unemployed who wish to create their own business and who cannot get a standard bank loan. Furthermore, Adie uses its experience to offer improvements to the existing regulatory framework governing microenterprises and microfinance in France.

Financing ans business advice

Adie finances the self-employed and microenterprises through a variety of products based on clients’ needs :
• Loans at market rate up to 6000 €
• "Start-up grants" funded by the French government or by local authorities
• Non interest bearing subordinated loans

Usually, the financing needs do not exceed 11 000 €. In addition, Adie staff and volunteers provide post-loan business advice to microentrepreneurs in the fields of business management, administrative formalities, marketing and legal advice.

Microentrepreneur profile

Adie provides financing and business advice to microentrepreneurs who do not have access to bank loans, mainly unemployed and recipients of welfare benefits.

Types of businesses financed

Adie finances any type of projects. The capacity and motivation of microentrepreneurs as well as the feasability of the project are the main criteria. Loans are granted by a credit Committee made up of volunteers (business managers, accountants, bankers) and permanents staff. A majority of our projects are concentrated in the retail and service sectors, such as : graphic designer, house painter, florist, grocer, beautician, market seller, restaurant, architect, farmer, photographer, etc.

A rapidly growing demand

The demand for microcredit is ever growing. The number of potential microentrepreneurs in France is estimated to be in the range of the 50 000's. This number could well reach 300 000 if the regulatory framework were simplified, social insurance contributions reduced and financial resources increased.

Partner solidarity

Adie could not succeed without the help of its partners, which every year renew and very often increase their support. Whether banks, companies or local authorities, their contribution covers all aspects of Adie’s activity: loan financing, quasi equity funding, guarantee funds, operating costs, non-financial services. All together, the partners form a true solidarity network around the microentrepreneur.