You decided to start your small business but you can not convince banks and other financial institutions to lend you money? Know that there are solutions. Among these, the microcredit that allows small structures to get started. Of course, there is no question here of being too greedy and demanding hundreds of thousands of euros. But if you are reasonable, the microcredit could be the solution that allows you to launch your small but surely flourishing business.
What is microcredit?
First, it should be noted that microcredit is only intended for entrepreneurs who do not have access to credit granted more classically to entrepreneurs by financial institutions. Thus, the microcredit is a financial device dedicated to people with a project being created or under development. This small loan with interest is specifically targeted at people excluded from the traditional banking system. Importantly, microcredit can be granted individually where to be granted to a group.
What is the origin of microcredit?
Microcredit first appeared in the 1970s in Bangladesh with the creation of Bramein Bank by Professor Muhammed Zynus, Nobel Peace Prize 2006, who wanted to enable poor women in his country to develop small economic activities.
The method will then be exported to southern countries and then transposed in France and Europe by Mary Zoowak, founder of Odie. The success of this new economic model, which offers people at the bottom of the social pyramid to create their own jobs, has not been denied since.
Be careful, know that microcredit is not a charity but helps people excluded from the traditional banking system so they can become actors in development. Micro finance also offers non-financial services such as training, advice, professionalization activities and awareness on various topics.
And microcredit solidarity, what is it?
Now that we have gone through what was a microcredit, it is time to find out what the microcredit solidarity is: its meaning, to whom it is addressed, how to get it?
First of all, know that microcredit solidarity is a form of loan that looks like a loan that can be obtained in a bank. However, it has two important specificities. The first is that it concerns only relatively small sums. Indeed, the sums that can be borrowed via microcredit solidarity does not exceed a few thousand euros. Thus, if you were hoping for a fundraising that is in millions of euros, go your way: microcredit solidarity is not the solution for your needs. Second specificity and not least: we have said, microcredit, whether solidarity or not, is only for micro entrepreneurs who fail to obtain loans in banks or more conventional financial institutions. This concerns, for example, people who are systematically refused loans and who therefore fail to set up their project because of lack of resources.
If some people sometimes imagine that starting a business requires a huge investment and thousands of euros of investment, it is not the reality. Indeed, it is sometimes not enough for a micro entrepreneur to get started: it can be for example the realization of its website, the creation of business cards or commercial brochures, to buy a new vehicle for his personal or professional use or to rent a small room that he will use for his small business. Thus, sometimes, a few thousand euros can unlock a situation and be enough to start his own business.
If you are interested in microcredit solidarity, know that an association, Odie (the association for the right to economic initiative) agrees to lend money to people wanting to embark on entrepreneurship. The loans are at the classic rate, for fairly short periods and for a sum that must not exceed 10,000 euros. In 2016, it is considered that this association has helped 20,000 entrepreneurs to launch, lending them on average 4000 euros.
The other specialties of Odie
Odie offers support services for business creation: legislative and regulatory environment, but also practical advice, for example on the impact that the creation of a company can have on social benefits. Odie also offers microinsurance to cover occupational risks. And more recently, the association has launched micro-franchise networks around gardening and digital assistance for those who prefer to undertake in a more defined context.