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AFI - Action Finance Initiative |
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AFI - Microfinance & Unemployment | ||||
AFI’s mission is to make a real impact in the fight against financial and social exclusion in Greece by helping unemployed people create their own jobs and existing businesses further grow through access to funding of up to 10,000 euros in the form of microloans and free-of-charge pre and post disbursement business development services.The financial liquidity is provided through banking institutions, while a diverse pool of volunteers help imparting the necessary business skills to existing and aspiring entrepreneurs. In this way, AFI contributes in restoring in the Greek society the basic values of a social market economy,which are work,exchange,profit,trust and solidarity. According to its bylaws, AFI has 4 main objectives:
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AFI was officially registered as a Civil Non-Profitable Company (non-profitable, non-governmental) in January 2014. Field operations started in January 2015 and are continuing ever since. |
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The recent financial crisis has brought about unprecedented unemployment rates, which in turn has led to multiple negative social externalities. At the same time, the lack of liquidity in the economy and the exclusion of new and existing entrepreneurs from the banking sector result in additional limitations in any turn-around dynamics and people’s capacity to effectively re-bounce. In this context, AFI has been established to provide an alternative to paid unemployment by giving financial access to micro entrepreneurs (with a focus on the most vulnerable: unemployed, youth, women) who want to create or develop their own company and thus job. By creating employment opportunities, AFI seeks to contribute to the restoration of social and economic security at the base of the pyramid in the Greek society, which is shattered by an ongoing, multi-year crisis. Apart from the access to funding, AFI is providing free-of-charge Business Development Services (business support, coaching and mentoring) with the unparalleled contribution of volunteers from various sectors and industries of the Greek economy. The pool of volunteers is split 50% function experts, 30% industry experts and the rest generalists. At the same time, the pool has representation from senior executives from the private and public sector, the banking sector as well as entrepreneurs that have gone through the path of opening up a new company. They provide their skills and knowledge for free in the following areas: 3 years financial planning and budgeting, online marketing, business development, legal counseling, licensing and exporting. Very recently AFI signed a strategic partnership with the organization "The People's Trust" in order to introduce for the first time in Greece the synergized combination of microloans with grants, reducing the total cost of borrowing, without eradicating the benefits and values of microfinance. |
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AFI cooperates with non for profit organizations, educational institutions and other organizations who share the same vision of supporting entrepreneurship at all levels. Namely some:
AFI also cooperates with:
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In 2005 and 2006, AFI operated mainly in the Attica region, with selected exceptions in Central Greece, Crete and Peloponnese as pilot expansion projects. The general rule of thumb is 1.5 hrs driving distance from the metropolitan area of Athens in order to be able to match clients (companies and entrepreneurs) with volunteers who are currently residing and being recruited in Athens. The 2017-2022 business plan entails the expansion of the organization to 5 more main cities, covering the vast majority of mainland Greece. This will require the opening of physical branches, as well as onboarding volunteers from the local ecosystem, strengthening the solidarity and knowledge-sharing among the local populations. |
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Data as of 31/8/2016 53 projects approved, of which 43 already disbursed. Total credit disbursed to the selected projects 349.150 euros of which ~142K for investment purposes and the rest for working capital Of the already funded projects:
More info on AFI's success stories: www.afi.org.gr/en/success-stories |
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