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Adie - microcredit to create your own employment

Adie - microcredit to create your own employment. The 3 missions of Adie. To finance persons who have a business project, but who do not have access to the banks. To support before, during and after the business start.

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Adie - microcredit to create your own employment

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  1. Adie - microcredit to create your own employment

  2. The 3 missions of Adie • To finance persons who have a business project, but who do not have access to the banks. • To support before, during and after the business start. • To contribute to the improvement of the environment for business start-ups and microcredit.

  3. A public in a precarious situation Adie adresses all persons with a project to start or develop a business and who do not have acces to classical bank credit • Beneficiairies of « Revenu Minimum d’Insertion » (long-term unemployment benefit), • the unemployed, • Independent workers, • Salaried persons

  4. Very different educational levels More than 20% of financed clients are illiterate or know hardly to read, write or count. Levels of education: 9% long higher education; 4% illiterate; 17% can hardly write, read and count; 13% University degree: 16% A-levels; 4% secondary school; 37% vocational training/technical training

  5. Adie : In the city or at the countryside… • 2/3 of Adie’s activities take place in the urban area • An increasing part of clients from the suburbs (banlieu) Areas of residence: 7% travellers (Roma) - 18% disadvanted neighbourhoods - 50% urban areas - 25% rural ares

  6. Adie : sectors of activity • The majority of projets are in the trade and service sectors  Some examples of professions : infographiste, edificial painter, florist, estheticien, ironing at home, wine merchant, electrician, trader on the market, innkeeper, architect, snail raiser, photographer…

  7. Adie : the regional network and the human resources • Present all over France (métropolis and overseas territories) • 15 regional directions • 131 branches, particularly in precarious areas • 380 « permanences » (stand-by) • 370 employees and 1000 volunteers

  8. Adie: the organisation of a regional direction

  9. Credit pole : the financial tools • INTERNAL TOOLS • Microcredit • Max amount : 5500 euros • Period : 24 months • Interest rate : 9,71% • Guarantee : solidarity warrantee - 50% of the loan amount • Solidarity contribution : 5% of the loan amount • Prêt d’Honneur (honor loan) • Max amount: 5000 euros • Period : 24 mois • Interest rate : 0% • Solidarity contribution : 5% of the loan amount

  10. Credit pole : the financial tools • EXTERNAL TOOLS • Management of State programmes and programmes of the regional authorities depending on the regions of France • Bonuses • Reimboursable advaces

  11. Credit Pole : The process • Receptionist : selects • eligibility • maturity • financial need • Loan officer : analyses the risk • the person • the projet • the reimboursement • President of the credit committee • Regional director / Credit responsible : the committee decides over the loan provision RECEPTION By telephone 15 minutes APPRAISAL 1 MEETING- 1H DECISION Credit Commitee 1/week

  12. Credit pole : a computer tool GAIA : • A tool that allows to treat each step of the process informatically. • Collection of the information about each new entrepreneur • Follow-up of the evolution of his/her progress at Adie • Edition of the contractual documents related to the disbursment of the credit • Follow-up of the reimboursement until total pay-back

  13. Where do our clients come from? • The sending organisations : • Standard networks : • national unemployment office, network of social workers, chambers, technical partners, press • Commercial approach • Development of mouth-to-mouth • Handing out flyers on the market • Internal support • Renewed loans

  14. Credit pole : the funding • The funding of credit resources: • Banks : about 40 financial establishments • Since 4 years, habilitation of Adie to borrow for onward lending to new entrepreneurs • Simplification of loan management • Faster disbursment periods • Shorter information periods about the reimbursment • The funding of the guarantee : • It is ensured by the Guarantee Fund for organisations in the field of integration through economy (FGIE), which is itself fed by the Social Cohesion Fund, the European Investment Fund (EIF) and the partner banks.

  15. Adie : the results • Number of microcredits in 2007 : 9 853 • Average number of jobs per project : 1,2 • Rate of sustainability of enterprises : 65% after 2 years • Integration rate (taux d’insertion) : 80% • Reimbursment rate : 94% • Number of jobs created since its foundation : 54 775 • Microcredits provided by Adie since 1989 : 53 600

  16. Support pole: Objectifs • To promote autonomy, professional integration and the social situation of funded persons • To reinforce the sustainability of the entreprises, support and develop the activity in order to anticipate and respond to the difficulties and develop the income • To develop microcredit

  17. Support pole: Structuration • Pre-business start-up support: • Responding to bargaining offers • Adie target group • Short and long-term support • Post-business start up support: • Adie clients • Offer of services • Network of volunteers

  18. Support pole: the human resources • Employees • Bargaining offers • Long-term support • Vomunteers : • Pre business start-up support • Post business start up support

  19. Support pole: How? • An available and diversified service offer, adapted to te needs of the new entrepreneurs realised through : • ResourceCentre : complete support offer => Objectif of 40 resource centres until 2009 • Services of proximity : Bien Démarrer (« Get off to a good start »), Adie Contact and Perm’Adie • ComplementaryServices : specificity of professions, pre-business start-up support…

  20. Adie : key steps during the last 20 years • 1989 : Creation based on the model of the « banks of the poor » that have developed in the South since the end of the 1970s: Grameen Bank au Bangladesh. • 1990 - 1994 : pilot phase Adie develops its methods. It borrows from its own funds. • 1995 - 2000 : development phase The association borrows in partnership with the banks and develops its network of regional directions. • 2001 - 2005 : institutionnalisation phase An amenmentto the bank law allows Adie to borrow for onlending. Institutional recognition of independent work and business start as a way of intergation. Recognition of public utility. • 2007 : Adie provides its 50 000th microcredit • 2008 : Adie celebrates its 20th anniversary

  21. The environment of business start in France • Why does Adie exist? • The role of the banks • State support • Support structures

  22. Adie : Perspectives in France • Adie wishes to remain an entry gate to the traditional bank circles and support the development of other bank and non-bank institutions in Europe. • Adie envisages to progressively cover its cost of loan management in order to sustain its activity. • The cost of support will remain subsidised. • The potential demand of microcredit in France is estimated at 30 000 loans per year. This demand can be multiplicated by ten provided the institutional environment becomes more favorable.

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