Commission européenne Investing in competitive businessess and high quality jobs Stimulating entrepreneurs and new enterprise Financing business start-up with ESF supported micro-loan funds

Commission européenne 2 -2-

3 -3-

4 -4-

5 -5-

6 -6-

7 -7-

8 -8-

9 -9-

micro-loan funds supported by the ESF Germany: 2 micro-loan funds Obj.1 (operative) 1 micro-loan guarantee fund Obj.3 (planned) Denmark: 1 micro-loan fund in Obj.3 (planned) England: 8 micro-loan funds (3 operative) ESF contribution: DE: 23,9 m UK: 12,4 m£ DK: 12,0 m (planned)

Commission européenne Mecklenburg-Vorpommern Obj. 1 Micro-loan fund Total investment: 6 m + 1,5 m Investors: ESF – 68,5% Land 31,5% Run-time: 10/2004 – 12/2008

Commission européenne Max. loan: Recipients:newly created SME, lender and SME resident in M-V Invest. phase: Applications before actual start-up Redemption: within 5 years but earlier admissible first 6-12 months without redemption Payment: paid out at 100%, No fees or management costs Interest rate: fixed 5% p.a. on the remaining debt. Securities: None

Commission européenne Basis for decision: business plan to forecast all expenditure and income generated within 12 months Supporting basis: written opinion of the chamber or sector organisation Size of loan: calculated from deficit: expenditure and income Supporting proof: concept of business, professional c.v., proof of qualifications, licenses, etc.

Commission européenne average loan: Total investment: 2.4 m by 10/ m future Applications per 10/2006: 1049 total 485 positive 296 negative 193 withdrawn Loan recipients: 22 age < age 25 to age > 50

Commission européenne (36,2%)retail 103 (26,8%) gastronomy, catering 97 (20,0%)services - business related 87 (17,9%)services – other 60health, veterinary, social services 33trade/repair motor vehicles 26culture, sport, entertainment 18wholesale trade, trade agency 18 dataprocessing, databases IT

Commission européenne do´s and don´ts – ESF funds manager don´t:n+2 do or don´t:be profit-orientated don´t:go it alone, steer do:monitor, evaluate, control

Commission européenne do´s and don´ts – management of fund Analysis, targeting, business-planning: do: specify, focus, forecast, spread risks, terminate don´t: be excusive, unflexible, undecided Management: do: source competence, monitor, steer, adapt, re-focus don´t:underestimate, isolate,

Commission européenne Conclusion: Support entrepreneurship by taking up the entrepreneurial approach Make full use of the ESF Install and manage a micro-loan fund No risk – No profit!