1. Improving the framework for MC
and MCE : how regulatory changes
can advance or hinder the industry ?
French Case
GLOBAL MICROCREDIT SUMMIT,
VALLADOLID, 2011
Stéphanie Kpenou, Advocacy Officer,
Adie

2. 1 - Legal framework for microcredit
Existence of a specific legal framework for non bank
MFIs. Since 2001 (amendment to the banking Law), non bank
MFIs are allowed to borrow in order to provide :
> business loans to unemployed persons and recipients of social
welfare ;
> loans to businesses with up to 3 employees up to 5 years
following their creation.
3 non bank MFIs authorized : Adie (national coverage) and 2
others associations, Caisse sociale de Bordeaux et Créasol (local
coverage)
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3. 2. Impact of this regulation
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4. 3. Doing Business in France
World Bank Ranking, Doing Business 2012 : France
stands at 29 in the ranking of 183 economies
Ersnt&Young, Annual Barometer of entrepreneurial
confidence in the G20 countries :
>French entrepreneurs > weaker entrepreneurial culture of
the G20 countries
>French entrepreneurs > pessimistic about the ability of the
government to establish an incentive environment to
entrepreneurship
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5. 4. Overview of the regulatory framework
related to microenterprises
Entrepreneurs are subject to numerous rules from diverse
laws, regulations or professional norms (code of ethics, for
example).
By field of activity, the regulation that applies is the same for
all companies regardless of size.
3 categories of regulations :
> Conditions related to the company (registration formalities)
> Conditions for exercise of the activity (permits, clearances,
statements)
> Conditions attached to the person (Law of 1996 requires diplomas
and professional certificates for the exercise of artisanal activities)
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6. 5. Impact of this regulatory burden
•Regulations requiring professional qualifications >> hurdle
to employment by blocking access of young school leavers
and low-skilled adults to self employment.
•These barriers prevent the conversion of the unemployed
into promising sectors. ex. :construction sector represents
an important market thanks to the emergence and
development of new activities linked to energy savings.
•These regulations encourage the exercise of undeclared
activities.
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7. 6. Advocacy of Adie
• Contribution to the creation of the auto-entrepreneur
regime : simplified procedure of registration + no fees required for
setting up an auto-enterprise.
•Advocacy against the Law of 1996 related to
professionnal qualifications : action for annulment before the
Administrative Supreme Court (Conseil d’Etat) + request on
constitutionality before the Constitutional court
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