The Role of Microfinance and Entrepreneurship During the Next EU Budgetary Period 2014-2020

This paper highlights the potential of self-employment and entrepreneurship as a source of creating new jobs in the European Union (EU) in context of the recent crisis. It identifies that access to finance for entrepreneurs interested in launching new activities has worsened since the beginning of the crisis. It also emphasizes on the importance of a conducive environment for new entrepreneurs that allow for easy access to knowledge, materials, and finance for increasing the job creation potential in Europe. The paper covers the following sections in detail:

• Lending statistics of MFIs and the existing challenges in the European microcredit sector;
• Efforts undertaken by the European Commission in creating a sustainable microfinance sector and ensuring sustainable sources of funding for new entrepreneurs;
• European Microfinance Network’s (EMN’s) take on the current situation of the microfinance network in the European Union;
• Suggestions and effective measures provided to increase the supply of microloans and serve the growing number of clients;
• Merits of the Employment and Social Innovation (EaSI) program;
• Issues that could hamper the future development of the microfinance sector with a focus on social impact, funding, business development services, and identifications of conditions for getting support.