maria doiciu, improving the framework for microcredit and microenterprises
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Improving the framework for microcredit and microenterprises
How regulatory changes can advance or hinder
Ianuarie 2011can advance or hinder the industry –CEE case
Enterprises in EU27
21.6% 18.9% 17.9% 41.6%
Number of
Gross value
added
92.1%
29.8%
6.6%
20.3%
1.1%
16.8%
0.2%
33.1%
0% 20% 40% 60% 80% 100%
Number of
enterprises
Number of
employes
Micro Small Medium Large
Ease of doing business
Estonia
Latvia
Lithuania
60-80
40-60
20-60
0-20
Lithuania
Poland
Czech Rep.Slovakia
SloveniaHungary Romania
Bulgaria
59
72
51 64 6263
76
138
126
10196
80
100
120
140
160
Entry barrier benchmarking
DOING BUSINESS – World Bank Group; economy rankings
59
37
51
48
64 62
2721 24
49
63
28
39
5144
8 8
48
24
48
8
48
4
40
0
20
40
60
Easy of doing business rank Starting a business Getting credit
• Easier access to credit and Commercialization of the
sector
• New investors: commercial and social
Legal framework for MFIs: NBFIs
What consequences has it had on the
Romanian MF sector?
• New investors: commercial and social
• New MFIs: from 8 – to 200 MC providers
• MFIs Operational sustainability > 100%
• Increased supervision from Central Bank
• A unified legal framework for all Non Bank Financial
Institutions: Micro credit, Leasing, Consumer credit,
Mortgage.
Romanian MF sector in 2005
around 5-10% SMEs financial market
12
15
18MATURITY
0
3
6
9
Social oriented Social and commercial oriented Commercial oriented
NGO
NBFIGLP ≥EUR 5,000,000 EUR 5,000,000 > GLP ≥EUR 1,000,000 GLP < EUR 1,000,000
SOCIAL ORIENTATION
Romanian MF sector in 2010
around 30% financial market
12
15
20MATURITY
0
5
8
9
Social oriented Social and commercial oriented Commercial oriented
NGO
NBFIGLP ≥EUR 1 5,000,000 EUR 5,000,000 > GLP ≥EUR 1,000,000 GLP < EUR 1,000,000
SOCIAL ORIENTATION
What hindered the industry (MSMEs)?
– High bureaucracy
– High entrance barriers for MSBss
– Corruption
– High level of taxation– High level of taxation
Entrepreneurial appetite
Entrepreneur
Employee
No preference
N/A
Re-building the entrepreneurial spirit
• School curricula and Non-academic
entrepreneurial education
• Promotion of entrepreneurs as social models
• Equilibrium btw. risks and recompenses
• Social responsibility • Social responsibility
• Stimulate high aspirations
Let’s get together!
And lobby for an Enabling Doing Business Environment
at the Local, National and European Union level in
the SAME TIME
Thank you!
Maria DoiciuEurom Consultancy & Studies
Calea Plevnei 46-48, FPP Entrance, 2 nd fl.Calea Plevnei 46-48, FPP Entrance, 2 nd fl.
Bucharest, sector 1, Romania
www.eurom-consultancy.ro
E-mail: [email protected]