Social economy operators, important pillars in increasing financial inclusion

Representatives of the NBR and guarantee funds, banks, IFNs and other financial institutions, social enterprises, NGOs, representatives of ministries and independent experts participated in the debate related to the role of the social economy in financial inclusion, held at the NBR headquarters. A solution to increase financial inclusion is the removal of barriers to the financing of economic operators in the social economy, by creating appropriate instruments adapted to their needs.

Romania, in TOP for financial exclusion

Romania is one of the European countries that still faces a high degree of financial exclusion among certain social categories, but also of the social enterprises that develop in Romania, and this reality is a constant concern of the Romanian banking financial system. In this context, the Social Finance Association (SFA), in partnership with the Foundation “Alături de Voi” Romania and the Romanian Network of Social Enterprises (RISE) organized the event “The role of the social economy in financial inclusion”.

The event took place at the headquarters and with the support of the National Bank of Romania (BNR) and aimed to identify as much as possible the operators of the social economy – associations, foundations, cooperatives and especially social insertion enterprises (which have, permanently, the less than 30% of the employed staff belonging to vulnerable groups) – contributes to increasing financial inclusion.

The model by which socially excluded people benefit from financial inclusion is simple: economic operators with social impact, through their activity, create jobs and insert vulnerable and socially excluded people into the work field, who later become clients of financial banking institutions.

For this model to work, however, social enterprises must also benefit from financial support. Currently, the investments are mainly made through European funding dedicated mainly to the start-up phase. Market data show that it is necessary to develop financial instruments adapted to this sector.

Bogdan Merfea: one of the ways by which we can increase financial inclusion is the removal of barriers to the financing of economic operators in the social economy

“I am very optimistic about the main conclusion of the event, that one of the ways we can increase financial inclusion is to remove barriers to financing economic operators in the social economy, by creating appropriate tools adapted to their needs. This event organized with the logistical support of the NBR, to which we also thank in this way, and attended by representatives of the NBR, guarantee funds, ministries, banks and financial institutions, foundations, constitutes a first step in creating the ecosystem of financing the social economy in Romania.

I am convinced that, through concrete steps, through support given to social economy operators to improve their financial performance, banks and financial institutions will look more closely at this sector in the near future. The Social Finance Association, through the financial instruments it undertakes to create and implement, is an active and dynamic actor in promoting financial inclusion in this less supported sector”, states Bogdan Merfea, president of the Social Finance Association.