Developing A Small Enterprises And Micro Leasing

1804 Words May 7th, 2015 8 Pages
Microfinance provides the basic financial services to low income people, who have lack to access to bank related services. This includes credit for instance, micro saving’s, micro insurance and micro leasing. The main focus of European Union is on microcredit because there is only limited experience with micro savings and micro leasing exists, it is due to the strict regulation, for instance with regard to deposit taking.
The microcredit is the extension of very small loans to those who are in poverty designed to spur entrepreneurship and the microcredit is defined below 25,000 Euros as a loan for business initiative and it is also have two groups which are micro enterprises and for disadvantaged people.
In European Union 91.8% businesses are micro. These businesses are responsible for more than two thirds of the European Union’s workforce. Small enterprises and Micro is the engine of the European economy.
The main providers of microfinance within the European Union are the private banks. They provide microfinance independently for their own account and in partnership with other providers, such as public bodies, particularly the European Investment Bank (EIB) and specialised Microfinance Institutions (MFI’s). Private Banks provide microfinance offering to bankable borrowers, who believe to have a viable business with a relatively high profitability of being able to repay debt. Other Microfinance Institutions and public bodies are more likely to provide microfinance to…
Open Document