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

This report presents a summary of the United Kingdom's (UK) economic data and then assesses the country as an ideal environment for microfinance and self employment against a set of six criteria, assigning for each a rating between 0 and 5. Criteria and corresponding ratings are:

• Entrepreneurial context (3.5);
• Policy for micro-enterprises (4.5);
• Welfare bridge (2.5);
• Legal framework for microfinance providers (5.0);
• Financial bridge for the socially excluded (2.0);
• Funding for microcredit providers (4.0).

• The paper concludes that the UK is exemplar for other European countries in having:
  • A positive attitude towards entrepreneurship;
  • An effective legal framework and easy formalization and registration of micro-enterprises;
  • Strong policy measures that favor and promote microenterprises and entrepreneurship involving public and private stakeholders.
• However, the authors also recommend improvements for the UK compared to other European countries, such as:
  • Having a specific Governmental social protection program for the self-employed;
  • Promoting self-employment as a career choice for the unemployed;
  • Having an active sector in micro-enterprise finance, so as to make accessible mainstream finance to micro-enterprises and socially excluded people.