ALMI presentation

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Microfinance with a Mission Learning Together
Bringing together private and public partners
to improve clients choices
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• Gabriella Mast Weggeman
• Director of women entrepreneurship
• ALMI Företagspartner

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Mission

• To support development of competitive small and
  medium-sized companies and to stimulate new
  business in order to create growth and renewal in
  Swedish trade and industry.

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ALMI Företagspartner AB

• 21 regional companies
• 400 employees
• Parent company is state-owned
• Subsidiaries owned by county councils to 49

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ALMI is unique

• National - 21 companies all over Sweden
• The regional approach - deep knowledge about
  local conditions
• The combination financing business development
• A complement to existing market

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Goal

• To commercialize more innovations
• To create more new companies
• To increase companies competitiveness,
  efficiency and growth

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Target groups
Established companies
Innovators
Start-ups
Idea
Development
Start
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ALMI is financing companies in all lines of
business. Most important to evaluate is the
business idea, the market potential and
management skills.
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Business development

• ALMI offers professional advice and several
  different programs designed to improve skills for
  increased competitiveness.

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ALMI Financing

• The fund holds M 400 Euro
• 13 000 clients in portfolio
• Close cooperation with commercial banks
• Different financial solutions suitable for target
  groups

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Loan facility

• Up to 50 of total financial need
• Loan terms vary from case to case
• Higher interest than commercial banks
• A well-laid business plan

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What could be the role of the state in the
implementation of microfinance projects?
The Government can influence and direct
the regulations, so we can reach
specific target groups, for example
immigrants and women.
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Business Loan for Female entrepreneurs

• Started 1994
• Female owners with already existing firms
• Potential female entrepreneurs planning to set
  up their own business
• Amount Euro 3.000 - 17.000

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Business Loan for Female entrepreneurs

• Amortization terms
• The duration was six years
• The first one or two years could be free of
  amortization
• Interest rate
• The loan could be free of interest for one year

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Business Loan for Female entrepreneurs

• Business All business areas
• Legal entities All types. Both new firms and
  ongoing business
• Owner Only women/women. No men were allowed
• as owners of the company

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Business Loan for Female entrepreneurs

• Profitability The business idea had to be based
  on long term profitability and should
  provide at least part-time salary for the owner
• Total amount of loans until the program was
  discontinued in 2004
• 441 million SEK (Euro 52.2) - for about 6.000
  clients (average loan ca SEK 73.500 (Euro
  8.000)
• Number of clients aboaut 6.000

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Business Loan for Female entrepreneurs

• ALMI also offer special Training programs and
  seminars, as well as Mentor programs to
  support the development of the female
  entrepreneurship.
• Today every third new start up is by a women!

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Why did ALMI work with microfinance field?

• We saw that we didn t reach women and that women
  didnt start up new business
• As a consequence the Government took the
  opportunity to give ALMI directions to do
  something concrete to support women to be
  entrepreneurs

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What are the main results so far?

• We have been successful in encouraging women to
  start up business
• We have also encouraged women to establish
  contact with a bank
• Its therefore now more easy and natural for
  women entrepreneurs to take next step - seeking
  capital to develop their business
• Women are today also more interested in taking
  over existing business, which today is a topical
  question as many business owners will retire the
  next coming years

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Is it attractive for commercial banks to
cooperate with ALMI as a public partner?

• Banks in general only finance a new business as
  long as they can secure their investment
• ALMI on the other hand is willing to take a
  higher risk and can therefore complement the bank
  and help the entrepreneur to get a complete
  solution for his capital need
• In other words - ALMI is normally considered as
  an attractive partner

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How were the private partners approached and
convinced to jump into to partnership!

• The cooperation between ALMI and the commercial
  banks has grown during the years.
• It has never been in a formal way as a
  partnership agreement.