EU's seed-corn investment in entrepreneurs welcomed
Posted, July 02, 2009 @ 12:00
Microfinance facility to encourage new start-ups
The new microfinance facility launched by the European Commission today, which aims to help the unemployed start their own business, has been welcomed by Conservative industry spokesman in the European Parliament, Giles Chichester MEP.
The fund of €100 million will be used to assist new start-ups and to provide support and guidance to small businesses and entrepreneurs. It is expected to lever €500 million of support under a joint initiative with the European Investment Bank and other financial institutions. The fund should be operational by 2010.
Mr Chichester said:
"Small businesses and entrepreneurs will pull our economies out of this recession. This fund is a small seed corn for people who want to help themselves and provide employment for others.
"British small businesses currently employ around 60 percent of the private sector workforce. Many people have tried to turn their ideas into a business or expand, but without support from the banks many have floundered. This fund will easily pay for itself and will create a strong foundation for economic growth in the future.
"We must do our best to pass this facility swiftly through the parliament. Many small businesses need the support as soon as possible."