THE ACTIVITY OF MICROCREDIT INSTITUTIONS IN POLAND AGAINST THE BACKDROP OF OTHER EUROPEAN COUNTRIES

Abstract

The aim of this paper is to present the position of Poland against the backdrop of other European countries affiliated with the European Microfinance Network (EMN). In many cases, microenterprises have a problem obtaining external financing for their businesses. Support for small entrepreneurs is provided by microcredit institutions, which in many cases do not require a credit history or collateral from their clients. Microfinance, by limiting the phenomenon of financial exclusion and facilitating access to financial resources for those in need, can become a tool to stimulate entrepreneurship. Most of the institutions providing loans are affiliated with the European Microfinance Network. Analyses were conducted on three levels: activity of microenterprises in obtaining support for starting a business, loan portfolio quality, and the financial efficiency of institutions providing loans. Comparing Polish micro-entrepreneurs with companies from other European countries, it can be observed that Polish entrepreneurs pay their liabilities on time, as evidenced by the low percentage of lost loans, and institutions providing microloans generate small profits, but are able to finance their activities on their own. Poland also has favourable interest rates on microloans compared to other European countries. However, information showing a decrease in the number of borrowers and the value of loans provided in 2017 compared to 2016 can be assessed negatively.

Keywords

• financial exclusion
• microloans
• microenterprises
• synthetic indicator
• Poland
• European countries