Entrepreneurship Promotion Fund
Topic of the practice
Support to SMEs
Good Practice Information
Set up with ESF funds the Entrepreneurship Promotion Fund is a microcredit loan scheme aimed at supporting start-ups and viable micro companies who have been trading for < 12months. Using ‘smart money’, loans are accompanied by help with Business Planning and access to optional training across a range of six key business skills units. The fund is delivered through a network consortium of 57 Credit
Unions, represented by the Lithuanian Central Credit Union which provides micro companies with additional benefits. Co-financing 10% of each loan, the Credit Unions provide microcredits to the companies for financing business start-ups or expansion.
Key aims are granting 1,200 micro credit loans to start-ups, train more than 5,000 individuals involved, and reserve a contingent for priority groups.
Evidence of success
In the first three years of the programme (August 2009-Oct 2012) 329 loans have been granted, with a total value of € 5,82M (€ 15M being the total budget of the programme). 3,405 individuals from the companies involved have been trained, which is already 70% of the target set to 5,000.
In addition 400 jobs have been created.
Contact details to obtain further information on the practice
Investment and Business Guarantees, Ltd. - INVEGA
Annex completed on: 03-14-2013