Micro-lending for enterprise in the UK

Key contributors (PFRC): Elaine Kempson
Funded by: European Commission
Published by: European Commission
Publication date: 1998

The aim of this project was to provide an overview of micro-lending in the UK, covering both the need for micro-finance and the nature of the organisations that have developed to provide it. A working paper was produced looking at the growth of micro-enterprise in the UK, setting the context for a closer examination of the needs for financial support among this group. It assessed the need for both start-up and expansion finance among micro-firms in the UK, and considered the various sources of funding for micro-enterprise that existed at the time of writing. Commercial finance for micro-entrepreneurs is examined in detail, and in particular the working paper provides an analysis of the problems faced by this group in obtaining access to bank finance. The final chapter looks at micro-lending initiatives in the UK and the extent to which they meet the needs of micro-entrepreneurs.


Micro-lending for enterprise in the UK (PDF, 210kB)


This research formed part of a larger project entitled Benchmarking in Micro-lending: Working towards best practices, led by the Institute for Financial Services (Hamburg), in co-operation with the Personal Finance Research Centre, CASA (Copenhagen) and FACET (Netherlands). The project produced a handbook for banking professionals, which is intended to improve lending to small business customers.


Banks and micro-lending: Support, co-operation and learning (PDF, 716kB)


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