Alternative section: The Social Dimension of the EU.
After the 2008 credit crunch and the bail out of many banks, alternative finance and microcredit might play a crucial role not only in the developing countries but also in Europe. In Western Europe, the sector’s growth has been limited, despite increasing interest in its potential. Microcredit has a double impact: an economic impact, as it allows for the creation of income generating activities; and a social impact, as it contributes to the social inclusion and therefore to the financial inclusion of individuals. The European Commission has launched several initiatives in the field of microfinance and is part of a dynamics to promote microfinance as an economic development tool. This papers aims to analyse the role of the European Union in this policy area and the related concept of social innovation. It will also argue more theoretically on the centrality of alternative finance and microcredit in order to sustain business growth and fair access to credit.
