Microfinance in Europe – A market overview

Abstract

This study investigates the effects of microcredit in the European market. Based on the review of relevant literature and recent surveys, this research explores the general meaning of microcredit before addressing the European SME landscape with a special focus on micro enterprises and Microfinance Institutions (MFIs). Finally, the study reviews selected microcredit markets in both Western and Eastern Europe, analyzing aspects of social inclusion, job creation and market gaps. In the extremely fragmented European economy and in the absence of a commonly accepted microfinance business model, the findings confirm the positive impact of microfinance on both poverty and social exclusion which currently constitute major obstacles to a sustained economic growth