The Microfinance and Self-employment Environment for the Socially Excluded: Country Report Poland

This country report on the environment for microfinance and self-employment for the socially excluded in Poland, presents the following findings:

• Poverty is a serious problem in Poland, mostly affecting children and the youth;
• The self-employed are in the most difficult situation with 20% living below the poverty line;
• The highest number of poor people can be found among the unemployed;
• Immigration is very low compared to other European countries;
• The "Roma" form a strongly economically differentiated group that has massive problems entering the labor market.

The report examines the following aspects of microfinance in Poland:

• Entrepreneurial context;
• Policy for microenterprises;
• The "welfare bridge";
• Legal framework for microfinance providers;
• Financial bridge for the socially excluded;
• Funding for microcredit providers.

The report lists the following lessons that:

• Other countries can learn from Poland:
  • A liberal regulation on loan application and interest helps to build a market for private microfinance institutions (MFIs) and allows them to be financially sustainable;
  • Performance-oriented funding by an international donor can help develop a strong, market-driven actor;
  • Entrepreneurship development programs in schools and universities are an interesting way to promote the entrepreneurial context.
• Poland can learn from other countries:
  • There is a need for a national strategy that links micro-enterprise-friendly policies with a "welfare bridge";
  • The cooperation of banks and MFIs is important to broaden the outreach of microfinance.