EU LEVEL · POLICY
EU policy for entrepreneurship and microfinance
How the EU’s entrepreneurship and SME policies create the environment in which microfinance operates — and which EU programmes are relevant for micro and small enterprises and for microfinance providers.
THE EU APPROACH
A business-friendly environment for micro and small enterprises
When it comes to entrepreneurship and SME policies, the EU’s approach combines regulation, access to finance, entrepreneurship support, market access, innovation and the reduction of administrative barriers. The objective is to create a business-friendly environment in which micro and small enterprises — including those financed by microfinance providers — can start, grow and compete.
Microfinance sits at the intersection of two EU policy agendas: competitiveness and entrepreneurship, where microcredit is an instrument of access to finance for businesses banks do not serve, and social inclusion and employment, where it is a lever for the economic participation of people in vulnerable situations. The programmes below are the ones most relevant for micro and small enterprises and for microfinance.
EU INITIATIVES
Programmes relevant for micro and small enterprises and for microfinance
ACCESS TO FINANCE
InvestEU — SME window
Access to and availability of finance for SMEs perceived as high risk or having insufficient collateral.
SOCIAL INVESTMENT
InvestEU — Social Investment and Skills window
Dedicated support for microfinance and social enterprises — the window through which EU guarantees reach microfinance providers.
INCLUSION & SKILLS
European Social Fund Plus (ESF+)
Inclusive entrepreneurship, employment and skills — managed through Member States’ operational programmes.
REGIONAL DEVELOPMENT
European Regional Development Fund (ERDF)
Regional entrepreneurship initiatives and investment, including financial instruments deployed by regions.
COMPETITIVENESS
Single Market Programme
Competitiveness, market access and business support for SMEs across the single market.
INNOVATION & DIGITAL
Horizon Europe and Digital Europe
Research, innovation and the digital transition — relevant for the digitalisation of microfinance providers and their clients.
How microfinance is defined and regulated
The EU definition, EU support, the Code of Good Conduct and the legal basis for non-bank lending. Framework →
How these programmes reach the ground
The financial instruments — EU guarantees, CEB and EIB, private investors — that turn policy into funding for microfinance providers. Funding →