Social Finance for Support to Self-Employment (Bulgaria, Romania, Serbia)

The Social Finance Programme is implementing a two-year project (2004 – 2005) for support to self-employment. The project, funded by the French government, targets three countries of South Eastern Europe - Bulgaria, Romania and Serbia.

The project builds on the findings of a review of microfinance applications in industrialized countries.  It aims at taking forward the decent work agenda of the ILO by advocating micro finance as a strategy for self employment. especially for the unemployed.

Microfinance in industrialised countries: Helping the unemployed to start a business

Good practice guide: Microfinance for self-employment in industrialized countries, 2002

Through restructuring and privatization, an important contingent of qualified workers is being laid off in the three countries. Governments have increasingly promoted active labour market policies, and lately supported the development of SME and self-employment. However, after retrenched workers have benefitted from training and consulting services, they often face financial barriers as few financial institutions offer appropriate services. Several programmes supporting microfinance can be identified in these countries, but they remain isolated, and there is a clear lack for the integration of microfinance at the policy level.

The project is working through studies and stakeholder dialogues with public authorities, social partners, microfinance practicioners and commercial banks. The recommendations will set a legal and insitutional basis for the implementation of national employment schemes in each country.

For more information, please contact Severine Deboos.

ILO Budapest http://www.ilo.org/public/english/region/eurpro/budapest/employ/socfin.htm