ESIA - Solidarity economy and active insertion

Project information

Index: 0259R1
Acronym:PASE
Priority:1: Innovation and the knowledge economy
Sub Theme:Entrepreneurship and SMEs
Location FRANCE MÉDITERRANÉE Marseille Provence-Alpes-Côte d'Azur Start/End date of the practice
Start: 2002-01-01
End: on going

Topic of the practice

Growth and strengthening of the Social enterprises

Good Practice Information

Enterprises in the field of the social and solidarity economy were experiencing significant difficulties in gaining access to traditional banking and financial resources (problems with trust, profitability and recognition). Due to this, they were finding it very difficult to invest or put together working capital. At the end of 2001, the State, the Region and France Active decided to put together a tailor-made tool to support the financial consolidation of social enterprises through the ESIA association ("Social Economy and Active Insertion"), and facilitate their access to banks and traditional financial institutions.The objectives set for ESIA are as follows:- carrying out strategic diagnoses and financial audits of the social enterprises concerned,
- providing funding in the form of loans and loan guarantees,- providing banking advice and assistance.The financial tools implemented by ESIA are as follows:- capital loans: the aim of this provision of capital is to strengthen the equity of social utility associations and cooperatives. The interest-free amount is between
€5000 and €30,000, or up to €1,500,000 at an interest rate of 2% for costly development projects.- loan guarantees: the maximum amount of the guarantee is 65% for start-up social enterprises and 50% for others. The maximum guaranteed amount is €45,000.The creation of ESIA has encouraged the development of a company spirit in many social enterprises and their professionalisation. Its action has enabled these enterprises to have access to the financial products offered by banks and traditional financial institutions.The action of social enterprises is hindered by the lack of suitable financial products. Creating a tailor-made tool with public funding enables the field of the social and solidarity economy to move up a gear, something which would not be possible solely by means of direct requests made to the traditional banking and financial sectors.

Evidence of success

Main results: 264 projects funded between 2002 and 2008 (for 201 enterprises).€11,445,000 committed.5792 jobs concerned.Average intervention per company: €40,000.

Contact details to obtain further information on the practice

ESIA (Economie Solidaire et Insertion Active)

ESIA (Economie Solidaire et Insertion Active)

esia.contact@esia.org

www.esia.org

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