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Presented at SNEE conference in Mölle, Sweden
China and the US are leading when it comes to new business generation, while Europe lags behind. Small businesses play a key role within the economies of Europe and contribute towards employment increase. In many European states, high taxation create on the one hand a fair system for education and health care; but on the other hand results in fewer businesses being created. The equity the entrepreneur needs is simply taxed away. Governments in Europe may therefore consider boosting micro entrepreneurship through an equal funding opportunity. Despite the financial market deregulation, large populations in Europe lack access to banks, social networks and capital. 26 million people are currently unemployed in Europe, representing an opportunity for new enterprises, but also a higher burden on social welfare. The governments of Europe could promote entrepreneurship by committing more resources for funding micro entrepreneurs, such as micro loans or micro equity. However, to be successful, information and communications technology (ICT) plays an important role in the linking the micro funding with the micro entrepreneur, but also in terms of pooling more capital. This paper proposes a conceptual framework for improved entrepreneurship in Europe through micro funding facilitated by the use of ICT. Finally, it represents a counter-intuitive example applying best practices from the microfinance industry in the European markets.