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Initiative

AFI - Microfinance & Unemployment

AFI - Microfinance & Unemployment
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AFI - Action Finance Initiative

AFI is an NG/PO microfinance institution in Greece fighting unemployment by providing new and existing microentrepreneurs with access to funding of up to 10,000 euros in the form of microloans, while it supports them with free-of-charge business support and mentoring services.

 

Read More:  www.afi.org.gr


Contact

Objective Action

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:

  1. To introduce microfinance in Greece, in order to combat financial and social exclusion and help unemployed people create their own jobs,
  2. To deliver training, business advice and other business development services (BDS) to micro-entrepreneurs and unemployed, who want to create their own jobs
  3. To restore, in a society adversely affected by the ongoing crisis, the basic values of a social market economy, which are: work, exchange, profit, trust and solidarity,
  4. To improve legal and institutional environment of self-employment, small business creation and microcredit, as ways to financial and social inclusion.
 

Target Audience

  • Unemployed people 
  • Start-ups and existing micro & SME companies/entrepreneurs
  • Other vulnerable segments of the population: single mothers/fathers, divorced mothers, family with >= 3 children, employed but below the poverty limit, part-time employment, homeless, >50 years old with limited re-employability capacity, =<30 years old candidates, legal immigrants.
 

Duration

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. 


Description

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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Impact on Society

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:

  • 95 jobs created
  • 50% new - 50% existing companies
  • 44% female entrepreneurship
  • 44% of approved projects held by previously unemployed
  • 25% youth entrepreneurship (<= 30 years old)
  • 35% exporting activity
  • 25 volunteers
  • 238 training sessions held (both group and 1-1) to 189 unique people trained
  • 0% default rate of all loans disbursed

More info on AFI's success stories: www.afi.org.gr/en/success-stories 



Initiative Location

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.


More...…

Working with Organization

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:

  • The People's Trust
  • Venture Garden
  • Orange Grove
  • Found.ation
  • Impact Hub Athens
  • KEMEL
  • Solidarity Mission
  • Ekkinisi Lab
  • American Farm School
  • Praksis Business Coaching Center
  • ACE (Athens University of Economics and Business)

AFI also cooperates with:

  • Partner banks: PCB, Eurobank
  • Local universities and educational institutions, professional/industry associations and local consulting firms to assist with establishing a network of volunteers and trainers,
  • Newspapers, radio-stations, TV to support with communication activities,
  • Large private companies operating in the areas of intervention to assist with CSR programs and providing with volunteers.

More...…

Workers Participation


Photos

Benefits for Οrganization




Connection with Global Goals



No Connection with Global Goals found




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