Which policy instruments are the most effective at financing business start-ups by under-represented groups? By Faisel Rahman, Founder & Managing Director, Fair Finance

•

1 like•1,618 views

Presentation from the capacity building seminar “Financing business start-up by under-represented groups”, 27-29 June 2012, Trento – Italy; organised by the Local Economic and Employment Development (LEED) Programme and its Trento Centre at the OECD in collaboration with the Directorate-General Employment, Social Affairs and Inclusion of the European Commission. See www.trento.oecd.org

Policy Action Team 3

• Commercial Experience

Policy Action Team 3

• Commercial Experience

• Motivation

Policy Action Team 3

• Commercial Experience

• Motivation

• Confidence

Policy Action Team 3

• Commercial Experience

• Motivation

• Confidence

• Cultural Barriers

Policy Action Team 3

• Commercial Experience

• Motivation

• Confidence

• Cultural Barriers

• High Quality Business Advice

Policy Action Team 3

• Commercial Experience

• Motivation

• Confidence

• Cultural Barriers

• High Quality Business Advice

• Appropriate Finance

Identity 1. Passport
2. Driving License
3. Utility Bill

Identity 1. Passport
2. Driving License
3. Utility Bill

Analyses
4. Employment
5. Assets/savings
6. Credit history

Start up micro business
- one bank account
- cash based transactions
- few invoices
- no accounts
- no cashflow projections
- no or limited trading history
- bad or no personal credit
- bad credit history
- legality questions
1.

Lender Average APR

Morses Ltd 365%
Provident 469%
Rhodes Finance 1064%
CLC 1564%

Pay Day 2500%+

Priorities in choosing financial
products

1. Accessibility
2. Flexibility
3. Honesty and simplicity
4. Respect
5. Relationship

No-one wants charity
They just want a fair chance

EMN Members
88 Members in 23
countries
Full members, Corporate
members and Partners
NGOs, Banks, Think tanks,
Research institutes, Funds

72% Practitioners
12% Corporate members
24% Eastern Europe
24% research, consulting
companies

European Microfinance Network

Challenges

1. Variable quality
2. Regulatory challenges
3. Expectation challenges
4. Funding problem
5. Limitation of scope

Successful microfinance
organisations…
Are small or medium social businesses
Have non standard legal structures
Innovating financial services
Conduct a business that the mainstream
consider too risky
Independent

Bring social and commercial investors together

Grants focused solely on areas
where needed most

Donors

Social
investors

Increase impact by leveraging Banks
commercial finance

Lend on commercial terms
Benefit from security and ‘first
loss’ cover provided by
social investors

…revolutionize finance, starting with the people whom the
mainstream have left behind….

What's hot

CBO Health Event: Working with Investors Workshop

Commissioning Better Outcomes (CBO) fund evaluation

Level Up Your Startup Through Accelerator Program

Eko Seno Prianto

Albert Au - Helping SMPs Meet the Challenges and Seize the Opportunities of ...

International Federation of Accountants

Social Value and Local Commissioning

Voluntary Action LeicesterShire

Shovan Sargunam

Global Entrepreneur Week 2015 Freelancing for students and Graduates presenta...

Anna B Sexton

Investing in Livelihood and Enterprise Development

Ethical Sector

10. Enabling the sustainable economic growth of people with disability

Ethical Sector

Lighthouse Launch

KSkingsley

3. Towards a Disability Inclusive Workforce in Bangladesh

Ethical Sector

2 National Business and Disability Networks

Ethical Sector

Effective Community Engagement for Promoting Responsible and Sustainable Inv...

Ethical Sector

COSMIC Annual Report 2009

Julie Hawker

14 paul jones debt sale

CCR-interactive

Eesti idufirmade ökosüsteemi pudelikaelad

Tõnis Arro

What's hot (15)

CBO Health Event: Working with Investors Workshop

Level Up Your Startup Through Accelerator Program

Albert Au - Helping SMPs Meet the Challenges and Seize the Opportunities of ...

Social Value and Local Commissioning

Global Entrepreneur Week 2015 Freelancing for students and Graduates presenta...

Investing in Livelihood and Enterprise Development

10. Enabling the sustainable economic growth of people with disability

Lighthouse Launch

3. Towards a Disability Inclusive Workforce in Bangladesh

2 National Business and Disability Networks

Effective Community Engagement for Promoting Responsible and Sustainable Inv...

COSMIC Annual Report 2009

14 paul jones debt sale

Eesti idufirmade ökosüsteemi pudelikaelad

Similar to Which policy instruments are the most effective at financing business start-ups by under-represented groups? By Faisel Rahman, Founder & Managing Director, Fair Finance

Calvert Foundation Overview

UM_ITC

Ethics in financeA B

Skeptic's guide to social finance

CanadaHelps

Fundamentals of financial_institutions_powerpoint

he22_sinceforum

Finance in the South West 2018 - Established (>2 Years) Session

PKF Francis Clark

Financial intermediationKijuto JP

Managing conduct and behavioural risk

Tony Moroney

Managing Conduct and Behavioural RiskTony Moroney

Solving Financial Constraints with Innovative Funding Solution

Gilbert Tam 譚耀宗

Stockr Investor DeckVinny Jindal

Supply- Demand of Capital in SE- East Africa (sanitaized) Faheem Noor Ali

Responsible Investing: Alternative Perspectives to the Conventional View

Colin Habberton

SVMN October 2007 Meeting - Calvert Foundation & eBay Microplace (Shari Beren...

Dave McClure

Start up finance & venture capitalSerdar Temiz

Microfinance in PhilippinesPradeep Sahay

Risk of chinese companies finance decisions international resource developm...

Kimberly Kirkendall, CPA

Volans Social Innovation Tour - Canadian GovernmentKevin Teo

5.8 microcredit in low middle income contextsLeNS_slide

Micro finance and enterprenurship

Ak Maheshwari

Bes lmr notes (1)

shrinivas kulkarni

Similar to Which policy instruments are the most effective at financing business start-ups by under-represented groups? By Faisel Rahman, Founder & Managing Director, Fair Finance (20)

Calvert Foundation Overview

Ethics in finance

Skeptic's guide to social finance

Fundamentals of financial_institutions_powerpoint

Finance in the South West 2018 - Established (>2 Years) Session

Financial intermediation

Managing conduct and behavioural risk

Managing Conduct and Behavioural Risk

Solving Financial Constraints with Innovative Funding Solution

Stockr Investor Deck

Supply- Demand of Capital in SE- East Africa (sanitaized)

Responsible Investing: Alternative Perspectives to the Conventional View

SVMN October 2007 Meeting - Calvert Foundation & eBay Microplace (Shari Beren...

Start up finance & venture capital

Microfinance in Philippines

Risk of chinese companies finance decisions international resource developm...

Volans Social Innovation Tour - Canadian Government

5.8 microcredit in low middle income contexts

Micro finance and enterprenurship

Bes lmr notes (1)

More from OECD CFE

Servizio Civile Universale - Serena SUSIGAN

OECD CFE

Servizio Civile Universale - Federica DE LUCA

OECD CFE

Presentazione di Federica De Luca, Ricercatrice all’Istituto Nazionale per l’Analisi delle Politiche Pubbliche (INAPP), Referente di progetto “Monitoraggio e Valutazione del Servizio Civile Universale”, all'evento OCSE "Scegliere il Servizio Civile Universale: un dialogo sulle opportunità di impiego dei giovani in Italia", tenutosi a Trento il 6 febbraio 2024. Maggiori informazioni: https://www.oecd.org/cfe/leed/oecd-ucs-6-feb.htm

Servizio Civile Universale - Cristina PASCHETTA

OECD CFE

FDI and Superstar Spillovers: Evidence from Firm-to-Firm Transactions - Amit...

OECD CFE

FDI and Superstar Spillovers: Evidence from Firm-to-Firm Transactions Mary AMITI (FED New York, United States) Despite competition concerns over the increasing dominance of global corporations, many argue that productivity spillovers from multinationals to domestic firms justify pro-FDI policies. For the first time, we use firm-to-firm transaction data in a developed country to examine the impact of forming a new relationship with a multinational, and find a TFP increase of about 8% three or more years after the event. Sales to other buyers, trade and customer quality also increase. However, we also document that starting to supply other “superstar firms” such as those who heavily export or are very large also increases performance by similar amounts, even if the superstar is a non-multinational. Placebos on starting relationships with smaller firms and novel identification strategies relying solely on demand shocks to superstar firms support a causal interpretation. In addition to productivity spillovers, we document the transmission of “relationship capabilities” and “dating agency” effects as the increase in new buyers is particularly strong within the superstar firm’s existing network. These results suggest an important role for raising productivity through the supply chains of superstar firms regardless of their multinational status. Find out more at https://oe.cd/spl-mtg

E-invoicing data for functional territories definition: the use case of pharm...

OECD CFE

E-invoicing data for functional territories definition: the use case of pharmacies Maria AURINDO (National Institute of Statistics, Portugal) The presentation illustrates how a new Business-to-Consumer (B2C) database extracted from the Portuguese E-invoice system can be an important tool to explore the functional territories concept taking the pharmacies catchment areas as an example. The discussion addresses data integration methodological options and how Statistics Portugal infrastructural information domains – Business register, Building and fraction register and Population register – were crucial for this exercise, developed within the CE-SIG – Map of facilities and services project. Find out more at https://oe.cd/spl-mtg

Mapping location and co-location of industries at the neighborhood level - A...

OECD CFE

Mapping location and co-location of industries at the neighborhood level Alessandro ALASIA, Dennis HUYNH (Statistics Canada) In Canada, there is limited analysis on industry locations at the neighbourhood level; location and co-location of industries have been assessed primarily at the regional scale which results in an information gap for businesses. Recent evidence suggests that businesses do not just choose a city for their location, they choose specific business districts within a metropolitan area. Recent improvements in the geolocation of business microdata allow to address the information gap. This work, undertaken as part of the Business Data Lab and in collaboration with the Canadian Chamber of Commerce, is a first attempt to map industry locations at the neighbourhood level in major metropolitan areas of Canada. Using establishment-level microdata from the Business Register, we apply spatial kernel density estimations to identify neighbourhoods with high employment/revenue density for selected industries (2-digit NAICS) and industry clusters (grouping of 6-digits NAICS). The geographic delineation of business districts within metropolitan areas is the first step in understanding the evolution of industry location and co-location over time, and assessing local business dynamics at the neighbourhood level. Ultimately, these business districts can be analyzed in combination with additional data sources (e.g., mobility and road traffic) to derive further economic insights. Find out more at https://oe.cd/spl-mtg

Advancing and democratizing business data in Canada- Patrick Gill & Stephen Tapp

OECD CFE

Democratizing data through innovative data governance and visualizations Patrick GILL, Stephen TAPP (Chambers of Commerce, Canada) Small organizations in Canada struggle with accessing and leveraging data on business conditions and trends. These organizations have expressed difficulty in knowing what is available, accessing it and converting this information into actionable insights. To empower small organizations with more business-related information and insights, the Canadian Chamber of Commerce has built a suite of free tools that merge and visualize traditional statistics with powerful high-frequency data sets (e.g. payments and mobility). This work is enabled by innovate data governance (e.g. a data trust) and a collaborative partnership with Statistics Canada. The Canadian Chamber of Commerce is continuing work with Statistics Canada to release more local business information available through the agency’s Business Register (e.g. the mapping of local business districts), and is exploring how Generative AI can support small organizations’ navigation and understanding of the business information it has curated. Find out more at https://oe.cd/spl-mtg

Firm-level production networks: evidence from Estonia - Louise Guillouet

OECD CFE

The market microstructure of industrial ecosystems in the digital and green transitions: evidence from Estonia Louise GUILLOUET (Science, Technology and Innovation Directorate, OECD) Thanks to a unique combination of administrative and survey data matched to the Estonian VAT data, this project studies how information on transaction data can shed light on industrial policy making, through two different angles: 1/ Improving the understanding of the production network, industrial ecosystems and the relevant unit of analysis for industrial policy design and 2/ An application to the diffusion of the green and digital transitions, showing the role of production network in technology diffusion and how this can be leveraged to increase policy effectiveness. Find out more at https://oe.cd/spl-mtg

Using B2B transactions data: teh Belgian experience - Emmanuel Dhyne

OECD CFE

Horizon 2020 - research networks across borders - Rupert Kawka

OECD CFE

Involvement of rural regions in European research networks Rupert KAWKA, Torsten SCHUNDER (Federal Office for Building and regional Planning, Germany) This study investigates the distribution of the European Union's Horizon 2020 funding programme on rural and urban regions between 2014 and 2020 and the resulting urban-rural links. Leveraging the Horizon 2020-database covering the 2014-20 programming period, which encompasses data on approximately 35,000 funded projects involving nearly 180,000 partners, the paper explores the participation of rural firms and organisations in the broader European research framework. By integrating the urban-rural classification of NUTS 3 regions, the research addresses key questions concerning the involvement of rural regions in Horizon 2020 projects, the structural differences in projects with and without rural participation, and the dynamics of urban-rural collaboration in research. The study further aims to identify potential clusters of rural innovation hubs across Europe and assess spatial disparities. Find out more at https://oe.cd/spl-mtg

How can the social and solidarity economy help refugees along their journey?

OECD CFE

Forcibly displaced people fleeing violent conflict and other forms of persecution find support from the social and solidarity economy (SSE) along their pathways, from their country of origin to asylum protection. The numbers are growing and new OECD work sheds light on how the specific values and characteristics of SSE entities provide high-quality responses to refugee needs and facilitate integration in host communities. The SSE can support access to rights, empowerment, social and labour market inclusion of refugees. Join this webinar with the UNHCR, SINGA and NESsT Poland to discover how the SSE plays a role in the steps along the way of refugee’s journey.

Platform cooperatives Webinar ppt

OECD CFE

Data-driven regional productivity scorecards in the United Kingdom - Raquel O...

OECD CFE

Presentation by Raquel Ortega-Argilés, Professor of Economics, Manchester University and Director of the Productivity Laboratory, The Productivity Institute, United Kingdom at the 21st OECD Spatial Productivity Lab meeting on "Rebooting regional productivity: from analysis to policy", held in virtual format on 18 October 2023. This webinar focused on recent initiatives from the Basque Country in Spain, the United Kingdom, and Trentino in Italy, where the analysis of subnational economic data is used to compare productivity performance across regions, understand which economic and social factors drive regional productivity, and how regional productivity links to other economic and social outcomes. More OECD information: https://oe.cd/SPL Visit our website: www.oecd.org/cfe Follow us on Twitter: @OECD_local

Competitiveness for Wellbeing - Basque Country - James Wilson.pdf

OECD CFE

Presentation by James Wilson, Research Director, Orkestra, Basque Institute for Competitiveness, Spain at the 21st OECD Spatial Productivity Lab meeting on "Rebooting regional productivity: from analysis to policy", held in virtual format on 18 October 2023. This webinar focused on recent initiatives from the Basque Country in Spain, the United Kingdom, and Trentino in Italy, where the analysis of subnational economic data is used to compare productivity performance across regions, understand which economic and social factors drive regional productivity, and how regional productivity links to other economic and social outcomes. More OECD information: https://oe.cd/SPL Visit our website: www.oecd.org/cfe Follow us on Twitter: @OECD_local

The productivity board of the autonomous province of Trento - Carlo Menon.pdf

OECD CFE

Presentation by Carlo Menon, Economist, Trento Centre for Local Development, CFE, OECD at the 21st OECD Spatial Productivity Lab meeting on "Rebooting regional productivity: from analysis to policy", held in virtual format on 18 October 2023. This webinar focused on recent initiatives from the Basque Country in Spain, the United Kingdom, and Trentino in Italy, where the analysis of subnational economic data is used to compare productivity performance across regions, understand which economic and social factors drive regional productivity, and how regional productivity links to other economic and social outcomes. More OECD information: https://oe.cd/SPL Visit our website: www.oecd.org/cfe Follow us on Twitter: @OECD_local

Rafforzare il partenariato e la cooperazione internazionale in Friuli Venezia...

OECD CFE

Immersive technologies and new audiences for classical ballet-Rogers

OECD CFE

Presentation by Tom Rogers, Creative Digital Producer, Birmingham Royal Ballet, United Kingdom at the 6th Summer Academy on Cultural and Creative Industries and Local Development "Disrupting tradition: How digital technology is changing the cultural and creative processes", 18-20 Sept. 2023 ONLINE and 27-29 Sept. 2023 ONSITE (Trento, Italy). More info: https://oe.cd/sacci Visit our website: www.oecd.org/cfe Follow us on Twitter: @OECD_local

Data-driven art residencies to reshape the media value chain-Blot

OECD CFE

Presentation by Manon Blot, Project Manager, Cultural and Artistic activities and EU projects, France at the 6th Summer Academy on Cultural and Creative Industries and Local Development "Disrupting tradition: How digital technology is changing the cultural and creative processes", 18-20 Sept. 2023 ONLINE and 27-29 Sept. 2023 ONSITE (Trento, Italy). More info: https://oe.cd/sacci Visit our website: www.oecd.org/cfe Follow us on Twitter: @OECD_local

Web 3 ecosystem - Assi-Lama.pdf

OECD CFE

Presentation by Lara Assi, United Kingdom, & Natalie Lama, Jordan at the 6th Summer Academy on Cultural and Creative Industries and Local Development "Disrupting tradition: How digital technology is changing the cultural and creative processes", 18-20 Sept. 2023 ONLINE and 27-29 Sept. 2023 ONSITE (Trento, Italy). More info: https://oe.cd/sacci Visit our website: www.oecd.org/cfe Follow us on Twitter: @OECD_local

Taking history to the future - Verwayen

OECD CFE

Presentation by Harry Verwayen, General Director, Europeana Foundation, the Netherlands at the 6th Summer Academy on Cultural and Creative Industries and Local Development "Disrupting tradition: How digital technology is changing the cultural and creative processes", 18-20 Sept. 2023 ONLINE and 27-29 Sept. 2023 ONSITE (Trento, Italy). More info: https://oe.cd/sacci Visit our website: www.oecd.org/cfe Follow us on Twitter: @OECD_local

More from OECD CFE (20)