A report on two workshops organised by the European Commission’s Directorate-General for Enterprise and Industry.<br/><br/>For the European Commission, developing the supply of microcredit is important because it encourages new businesses, stimulates economic growth and can help counteract the effects of the financial and economic crisis.<br/><br/>Entrepreneurs often find it difficult to borrow small amounts because many banks see microcredit, in particular microloans to start-ups, as a high-risk, low-return activity where overhead costs are high in relation to the amount lent.
In order to further develop its policies, the European Commission sought the views of market participants and other experts on “The role of the banks for microcredit in Europe”. The following specific topics were initially identified:
Banking and non-banking experts discussed these questions in two workshops in November 2008 and March 2009. This report outlines the conclusions from those discussions.