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 [1] 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 busin
ess 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 gr
owing 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.