Signing Session EIF & Qredits

Toespraak | 14-02-2011

Your Royal Highness, Commissioner Andor, ladies and gentlemen,

Today we are celebrating the coming-of-age of microfinance in the Netherlands. It’s a pleasure to welcome you to this festive signing ceremony.

Why do I speak of a coming-of-age? Let me tell you the story. It all started in 2006, when this ministry first launched its microfinance policy. Her Royal Highness Princess Máxima and Mr Laman Trip can tell you all about it, as they were involved from the very start.

They discovered that access to finance is a challenge not only in developing countries, but also in rich ones. In Holland alone, some 600,000 people a year have plans to start a business. But only one in ten actually carries them out.

Why so few? Starting a business is a big undertaking. It demands faith, perseverance and a lot of hard work. But even that is not enough. Many potential entrepreneurs never make it to the starting line. Banks do not lend readily to people with only a basic education, no business track record or prior debts. Even if they do know how to write a business plan.

Take 26-year-old Mark Ligteringen. He has played rugby at top level and now studies economics while working part-time as a stockbroker. But he could not convince the banks to give him a loan for an online toy store.

As a consequence, many dreams remain dreams, and a lot of talent is wasted. And our economy misses out on jobs and growth. Because the entrepreneur starting out today is the employer of tomorrow.

Consultancy firm McKinsey estimated that a national microfinance system could allow an extra ten thousand people to start a business every year. Half of them would need coaching only; the other half, coaching and a loan.

McKinsey’s study resulted in two initiatives that complement each other. First, the launch of Qredits in early 2009, the first nationwide microfinance organisation. Second, the start of the Stichting EigenBaas.nl (or in English: YourOwnBoss.com).

This foundation has a network of over forty offices that coach and advise start-ups and small businesses throughout the Netherlands.

The double emphasis on coaching and loans are a special feature of the Dutch microfinance system. Why? Because we strongly suspect that coaching significantly increases success rates and lowers the risk of bankruptcy. We hope to prove that in 2014, when we evaluate the impact of our microfinance policy. But the first indications are encouraging.

I hope our experience can be used as a best practice in other European countries.

From the start, we made clear that Qredits would need to stand on its own two feet at some point in the future. We are not there yet, but we are getting there. My ministry provided the initial working capital with a 15 million-euro interest-free loan. Last summer, four banks followed with a commercial loan, guaranteed by my ministry. And now, Qredits is about to take a further step towards adulthood as it signs contracts with the European Investment Fund.

Qredits has now given 1,200 entrepreneurs loans of up to 35,000 euros. People like Mark Ligteringen. With his loan from Qredits, he bought his first stock and computers, and built his website. Check out his promising online toy store, planethappy.nl.

Ladies and gentlemen,

I want to commend everyone involved on this achievement. But Elwin Groenevelt deserves a special mention. Without his passion, commitment and hard work, we would not be standing here today. Elwin is a startup entrepreneur helping other startup entrepreneurs. He really started from scratch. From the carpeting to the logo, from writing the business plan to hiring his people, he has made Qredits a success story. Congratulations!

Let me also thank Princess Máxima and the members of the Dutch Council for Microfinance. And, last but not least, Commissioner Andor and the European Investment Fund for their faith in this project. Your efforts are unlocking the creative energies of thousands of potential entrepreneurs.

Thank you.

Youri Royal Highness, Commissioner Andor, ladies and gentlemen,

Today we are celebrating the coming-of-age of microfinance in the Netherlands. It’s a pleasure to welcome you to this festive signing ceremony.

Why do I speak of a coming-of-age? Let me tell you the story. It all started in 2006, when this ministry first launched its microfinance policy. Her Royal Highness Princess Máxima and Mr Laman Trip can tell you all about it, as they were involved from the very start.

They discovered that access to finance is a challenge not only in developing countries, but also in rich ones. In Holland alone, some 600,000 people a year have plans to start a business. But only one in ten actually carries them out.

Why so few? Starting a business is a big undertaking. It demands faith, perseverance and a lot of hard work. But even that is not enough. Many potential entrepreneurs never make it to the starting line. Banks do not lend readily to people with only a basic education, no business track record or prior debts. Even if they do know how to write a business plan.

Take 26-year-old Mark Ligteringen. He has played rugby at top level and now studies economics while working part-time as a stockbroker. But he could not convince the banks to give him a loan for an online toy store.

As a consequence, many dreams remain dreams, and a lot of talent is wasted. And our economy misses out on jobs and growth. Because the entrepreneur starting out today is the employer of tomorrow.

Consultancy firm McKinsey estimated that a national microfinance system could allow an extra ten thousand people to start a business every year. Half of them would need coaching only; the other half, coaching and a loan.

McKinsey’s study resulted in two initiatives that complement each other. First, the launch of Qredits in early 2009, the first nationwide microfinance organisation. Second, the start of the Stichting EigenBaas.nl (or in English: YourOwnBoss.com).

This foundation has a network of over forty offices that coach and advise start-ups and small businesses throughout the Netherlands.

The double emphasis on coaching and loans are a special feature of the Dutch microfinance system. Why? Because we strongly suspect that coaching significantly increases success rates and lowers the risk of bankruptcy. We hope to prove that in 2014, when we evaluate the impact of our microfinance policy. But the first indications are encouraging.

I hope our experience can be used as a best practice in other European countries.

From the start, we made clear that Qredits would need to stand on its own two feet at some point in the future. We are not there yet, but we are getting there. My ministry provided the initial working capital with a 15 million-euro interest-free loan. Last summer, four banks followed with a commercial loan, guaranteed by my ministry. And now, Qredits is about to take a further step towards adulthood as it signs contracts with the European Investment Fund.

Qredits has now given 1,200 entrepreneurs loans of up to 35,000 euros. People like Mark Ligteringen. With his loan from Qredits, he bought his first stock and computers, and built his website. Check out his promising online toy store, planethappy.nl.

Ladies and gentlemen,

I want to commend everyone involved on this achievement. But Elwin Groenevelt deserves a special mention. Without his passion, commitment and hard work, we would not be standing here today. Elwin is a startup entrepreneur helping other startup entrepreneurs. He really started from scratch. From the carpeting to the logo, from writing the business plan to hiring his people, he has made Qredits a success story. Congratulations!

Let me also thank Princess Máxima and the members of the Dutch Council for Microfinance. And, last but not least, Commissioner Andor and the European Investment Fund for their faith in this project. Your efforts are unlocking the creative energies of thousands of potential entrepreneurs.

Thank you.