Description of Challenge
Most of the time, entrepreneurial initiatives need support and / or financial resources to
start the activity, and not infrequently traditional banking does not satisfy this need. It
can be very difficult to negotiate a decent loan. Furthermore, social and solidarity
enterprises usually have criteria to promote another type of economy based on
principles of transparency, fairness and ethics and may not even want to negotiate with
mainstream sources of funding.
“Generally speaking, the stronger the connection between the financing and the
ultimate beneficiary, the better the result.” Paul Wolfowitz
Solution
If traditional methods do not fit well with entrepreneurs
who are in need of funding, what can we do?
There are several ways to solve this need. We can use our network to request
solidarity private loans at an interest rate of CPI or 0%. Or private loans at a market
interest rate that is negotiated and which is sometimes organized as micro credits. Or
we could become partners with a credit union that works with similar criteria to those of
our organisation. This is a easier and faster way to find financing for our activity and
can be tailored more easily according to the social and solidarity economy principles
and ethics that may be involved.
References
http://en.solecopedia.org/index.php?title=Solidarity_Finance.
http://en.wikipedia.org/wiki/Solidarity_lending.
http://en.wikipedia.org/wiki/Microcredit
http://www.inaise.org: International Association of Investors in the Social Economy.
Submitted by: Altekio
Developed in collaboration with
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