thinking space
Access to finance
Entrepreneurship is playing an increasingly important role for the economic as well as social development of societies. Financial as well as non-financial services enabling microentrepreneurs to make a living and generating or maintaining jobs are hardly being served by the traditional banking system; thus, access to finance for these target groups is still inadequate. This situation is aggravated by the fact that the actual size and scope of the problem has not been determined yet, resulting in a lack of evidence-based suitable strategies at the EU level and lack of wider mobilization of actors to support services for young entrepreneurs. The following Thinking Space Papers present research, technical descriptions of financial instruments, etc. related to access to finance.
Thinking Space Paper No.7: The Trust-based Partnership Model. An alternative financial Instrument for NEETs
The following Thinking Space Paper explores The Trust-based Partnership Model as an alternative financial instrument for NEETs who start and grow a sustainable business and require financial resources. The model is explained at the example of the German Microfinance Institute (DMI). Key elements, structures and success factors are described that ensure the application of common rules and the development of the overall structure for the benefit of all stakeholders. Finally, the Thinking Space looks at the transferability of the model into other settings.