You have been the new Managing Director of the European Microfinance Network (EMN) for 6 months now. What is EMN’s mission? Who are its members? What services do you offer them?
It is an honor and a great responsibility to lead the most important microfinance network in Europe for the past six months. We help our members to create and grow new financial and non-financial services for entrepreneurs in vulnerable and underserved communities. EMN does this by sharing best practices and advocating for its members with EU institutions and beyond. EMN also supports its members in various projects, such as SIFTA, which assists microfinance organizations. It is worth noting that 25% of our members are non-financial service providers.
What is the situation of the microfinance sector in Europe? What opportunities and challenges does it face?
Microfinance never gets old. It has the capacity to evolve and develop in response to changing circumstances and crises, such as the global pandemic caused by the SARS-CoV-2 virus. The potential of microfinance to contribute to achieving the objectives of the European Union, including the reduction of social exclusion and discrimination, represents a significant opportunity for the sector. However, the regulatory framework, which can be complicated or even hostile to our efforts to provide financial services in the inclusive entrepreneurship sector, represents another challenge for us and our members.
What is the strategy of EU bodies to promote financial inclusion in Europe? How is EMN involved in defining, implementing, and evaluating this strategy?
EU bodies promote and support financial inclusion through many services. This ranges from providing guarantees and funded instruments to offering tailored training and consulting services with the aim of further developing organizations and increasing financial inclusion across Europe. EMN actively participates in exchanges between EU bodies and members on how to implement and improve existing solutions for the microfinance sector. One venue for this exchange is the EMN annual conference where policymakers, stakeholders, and representatives, as well as sector actors, gather to discuss and identify effective, feasible, and innovative solutions for the various challenges we face.
In which EU countries is it easier and more difficult for entrepreneurs to access financing? Why?
It is probably impossible to say in which country it is easier or more difficult to access financing. Very often, microfinance is reduced to access to financing. However, microfinance, by definition, is the combination of non-financial and financial services. Each EU member state faces its own challenges and has its own priorities. Sometimes, this can lead to funding limitations for actors in the inclusive entrepreneurship space, while at other times the regulatory framework, as already explained, makes it more difficult to offer financial services.
Is there any impact assessment report on microfinance in the EU? If so, what are its main findings?
This report provides a snapshot of the microfinance sector in Europe and its social performance. In 2022, the microfinance sector supported at least 1.3 million entrepreneurs and households underserved by the traditional financial sector. Microfinance institutions (MFIs) play a crucial role in serving a wide range of groups, especially women and rural clients. There is also a growing interest in supporting migrants and refugees, and this is an area where our efforts are also directed. We must provide basic financial access to these individuals.
Several MFIs conduct impact assessments, which show positive results related to job creation, employment strengthening, and improved social and financial inclusion. More sophisticated methodologies (such as social return on investment) allow for quantifying the income generated and costs avoided by society, demonstrating that investments in the microfinance sector have a positive impact on public budgets.
Autoocupació’s motto is “I am what I want to be.” And you, are you?
That’s a great motto! To paraphrase it a bit, I would say: “I am where I want to be.” Microfinance, inclusive entrepreneurship, and social impact are part of me. I couldn’t see myself in a better place than where I am now. We embrace change and prepare a versatile and future-ready EMN. This is one of the most exciting challenges I’ve had as a manager, and I am very happy to be part of this process.
