Global Ecovillage Network/Solution Library/Socialsolidarity finance

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Most of the time, entrepreneurial initiatives need support and / or financial resources to start the activity, and not infrequently traditional banking does not satisfy this need. It can be very difficult to negotiate a decent loan. Furthermore, social and solidarity enterprises usually have criteria to promote another type of economy based on principles of transparency, fairness and ethics and may not even want to negotiate with mainstream sources of funding. “Generally speaking, the stronger the connection between the financing and the ultimate beneficiary, the better the result.” Paul Wolfowitz

If traditional methods do not fit well with entrepreneurs who are in need of funding, what can we do? There are several ways to solve this need. We can use our network to request solidarity private loans at an interest rate of CPI or 0%. Or private loans at a market interest rate that is negotiated and which is sometimes organized as micro credits. Or we could become partners with a credit union that works with similar criteria to those of our organisation.

This is a easier and faster way to find financing for our activity and can be tailored more easily according to the social and solidarity economy principles and ethics that may be involved. References http://en.solecopedia.org/index.php?title=Solidarity_Finance. http://en.wikipedia.org/wiki/Solidarity_lending. http://en.wikipedia.org/wiki/Microcredit http://www.inaise.org: International Association of Investors in the Social Economy. Submitted by: Altekio

• Economy
  • Banking & Exchange
  • Planetary Boundaries