Toespraak staatssecretaris De Krom bij het tekenen van overeenkomsten met Qredits en het Europese Investeringsfonds

Toespraak | 11-02-2011

Your Royal Highness, Commissioner Andor, ladies and gentlemen,

I would like to start by congratulating Qredits, the European Investment Fund, and the European Commission on the launch of the European Progress Microfinance Facility. I sincerely hope you will achieve your goal of extending 45,000 loans in EU countries. Microfinance gets the best out of people by promoting entrepreneurship. The agreements you are about to sign are an important step towards achieving that goal. We welcome the increased possibilities for providing microfinance in the Netherlands.

Microfinance has long been recognised as a means of fighting poverty mainly in developing countries. But, as Muhammed Yunus said, ‘This is not charity. This is business. Business with a social objective, which is to help people get out of poverty.’ Microfinance makes people independent, presents them with opportunities and gives them self-respect. The result is a win-win situation. Not only people themselves benefit, so do their country’s economies. Also in EU member states, including our own, microfinance for start-ups is increasingly proving its use.

In the Netherlands, increased labour participation is a key objective of this government, also in support of one of the headline targets of the “Europe 2020” strategy. We simply can’t afford to leave talents unused. Firstly, because it is socially unacceptable to leave people, who are able and willing to work, on the sidelines of society. Secondly, with our workforce shrinking, it is an economic necessity to secure a workforce available to meet future labour demands. And thirdly, because it is a financial necessity to keep government finances healthy, and our social security system sustainable on the longer term. We must recognize that people have different aspirations and talents. Not everyone aspires to be an employee. Some people‘s talents are more suited for a life as an entrepreneur; to be in charge of their own business, and to be responsible for its success.

The Ministry of Social Affairs and Employment encourages entrepreneurship. In particular among social benefit recipients. Our legislation provides local authorities with the means for support. They may provide financial assistance, coaching and supervision to those setting up their own business. Another example is the possibility to start up a business while maintaining employment benefit rights for a number of months. People who receive disability benefits may also apply for assistance. This means guidance through the early stages towards self-employment. And if necessary, adaption of their workplace. Starting up a business usually requires money. For advertising for example, and a lot more. Some people need a small loan to cover these costs. Banks aren’t always keen to provide these loans. To stimulate microfinance in the Netherlands the Ministries of Social Affairs & Employment and of Economic Affairs, Agriculture & Innovation have been testing two kinds of credit extension with two pilots.

Firstly of course, there is the pilot set-up together with Qredits, as mentioned by Minister Verhagen. With this we looked at the possibility of microfinance as an option for social benefit recipients. The second pilot focused on the possibility of banks providing microcredit to entrepreneurs, with the government acting as guarantor. Both pilots have finished and we are now gathering the results. Although we do not have definitive numbers as yet, it is already apparent that possibilities have increased for people to apply for microfinance.

Your Royal Highness, Commissioner Andor, ladies and gentlemen. Since January 2009, social benefit recipients who aspire to set up their own business have been able to apply for start-up loans at Qredits. Today, Qredits will be the first beneficiary of the European Progress Microfinance Facility. Qredits will use these funds to provide microfinance to those unemployed or to those at risk losing their jobs, enabling them to set up their own businesses. The Netherlands is the first EU country to make use of the opportunities provided by the Facility. Timing is excellent. Especially now, when we are facing the challenge to help as many unemployed towards work as possible. Microfinance is an important tool in this process. To get the best out of people. And to provide them with the opportunities they deserve.

Thank you.