microfinance norway - home | interreg europe · microfinance norway association – 96 hours incl....

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Unni Beate Sekkesæter, Founder & CEO

Microfinance Norway

“Social outreach of microfinance and mitigating the negative effects of financial exclusion”

A social business financing

livelihood businesses in Norway

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• Runs Entrepreneurial training

• Offers start-up support/ mentoring

• Offers Financial education courses

• provides guidance to those wanting to start a business

• Connect and support borrowers through network groups.

• Work with partners with similar support programs and social entrepreneurs

Microfinance Norway Business Training, network and Microfinancing

Loan Fund • Raises loan capital

• Reviews loan applications

• Provides Mikrofinance loans of

• 25 000 til 200 000kr

• Monitors repayment and any cases of default

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MFN finances entrepreneurs who want to create their own livelihoods

As a Social Business we offer: • Loans with good terms for people who are excluded from the workforce such as,

welfare receipients, refugees/migrants, x-prisoners, roma people • Business courses tailored specifically for potential entrepreneurs • A structured process for development of business ideas and financing of ideas that have

a high potential for success

Vi fremmer menneskers innovasjonskraft og muligheter gjennom kompetansebygging, nettverksbygging og finansiering for gründere.

The Social Issue

10%

of the population

aspires to start a

business

people in Norway are currently

outside the workforce due to

discrimination, health issues, a

criminal record, language

issues, etc.

Many of these lack

collateral, credit history,

and a stable salary, and

therefore cannot get a

business loan

900 000

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Our model

We give loans based on trust, social capital, and participation, rather than exclusively on economic capital. We add financial education to our courses

Entrepreneur

Training

Financial education

Network-groups

Microloan Continued support in

groups

Creditworthiness in commercial

banks

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• Mikrofinance Norway’s roots go all the way back to Norwegian People’s Aid ‘Selvhjelpsprosjekt’ launched in 1996

• During this time, 150 loans totalling 5.5 million kr have been issued but more than 1200 customers have received training/advice also. New loan fund just launcing now in 2017

• MFN is based on international best practice, and has gathered experience from the European Microfinance Network.

History From the self-help project to Microfinance Norway

Case June 2017: Oppegård Frisør

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Rashid Alswedan came from Syria 3 years ago. Now he has successfully started his own hair dressing saloon! • In feb. 2016 he joined the

entrepreneurial training course of Microfinance Norway Association – 96 hours incl. Finncial education

• He will soon get a loan of €11 000 to pay for some of the extra needed equipment for the saloon and help with salary for his new staff

• He already employ 1 staff and will have one intern as well, so soon 3 new jobs have been created.

• All new jobs for refugees!

New: TREND Erasmus+ project • TREND - Training Refugees in Entrepreneurial skills using digital

devices- 3 year project – €375 000 has been granted

• SECTORS INVOLVED: AE – Norway (Lead), AE –Belgium and Germany, HE - Ireland, AE- Greece. Associate partners: Credinfo and EMN

• TARGET GROUP: Entrepreneurship trainers working- or wishing to work with refugees/migrants

• WHY? There is not enough entrepreneurial trainers with skills to train refugee entrepreneurs in Europe

• Existing entrepreneurship training is not always well suited to meet the needs of potential refugee entrepreneurs

• MAIN AIM: Make Self employment a viable option for refugees in Europe by training entrepreneurial trainers and using digital devices to reach the refugees – Smartphone app /Portal

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Trend project continued: Concrete objectives (linked to concrete expected results):

• Build on skills that refugees bring to Europe, Job creation through self-employment

• Make visible what refugees have to offer through mobile profiling with multi-media micro CVs

• Provide training materials/content focused on the needs of refugees using a blended learning approach

• Apply “train the trainers” concept to virally increase the number of entrepreneur trainers with skills to train refugees/migrants

• Provide trainers with attractive tools using mobile learning techniques

• Linking trainers and refugees using digital communication devices (mobile and web applications)

• Promoting entrepreneurship as job creating solution – value creation

• Raise awareness of the enormous potential of positive impact refugees can have on society and thus change attitudes towards refugees in society.

We hope the result will be a lot more access for refugees/migrants in Europe to skilled trainers, training materials and visibility so the persons in need find the appropriate training materials and contacts.

Access to microfinance through linking MFI sector to the app is also part

of the Plan!

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• Borrowers organize themselves in network groups of 3-7 members

• Each member gets support to carry out their projects and commitments

• Group rules are decided at the outset by the whole group

• The group creates business plans together, evaluate each other’s business ideas, and democratically decide who should receive a loan

• All members must save up 10% of the loan amount they apply for 11

Network Groups Building trust through collaboration

Network group

Guidance and

support

Group Loan

Saving

• Allows entrepreneurs to use their own skills and resources to create their own businesses.

• Network building, business courses, saving schemes, and access to loans creates a platform for entrepreneurship.

• The program allows youth, women, immigrants, and un- or partially employed individuals to improve their own lives through self-employment.

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The value of Microfinance Building your own livelihood

Some of our customers

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Mikrofinans Norge14 14

Household budgeting and cash-flow, seasonality and life-cycle planning

Savings services, how to choose and adapt them to needs

Emergency expenses, budgeting for emergency spending

Saving methods, by spending less and earning more

Making the plans realistic, financial planning, success factors for putting the plans into practice

Smart debt, credit services, credit traps and consumer rights

Own life experience, current financial practices, financial education level

Financial plan for family

New knowledge and skills

Positive attitude to financial planning and saving

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Home assignements

Visit to a bank

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