How to create a business model with social impact? Nicolas Crochet, co-CEO of Funds for Good, presented the innovative solution his company has found to answer this question at an EIB Institute “Midday Goes Social” seminar on 7 May 2019.
Funds For Good is a Luxembourg based investment fund distributor founded in 2011 by three Belgian partners who also wanted to contribute to society.
They decided to provide interest-free “loans of honour” (on average EUR 2 500) and free coaching to jobless people willing to start an entrepreneurial project. Half of the company’s profits (with a minimum of 10% of the revenues) and 25% of the partners’ time is dedicated to that endeavour.
Repaid loans are used again to provide other loans to those in need, feeding a virtuous cycle. Working with microfinance institutions (ADIE, Microstart…) they have been able to finance 170 entrepreneurs creating 195 jobs so far in Belgium and in France.
“Our objective is to allow as many people as possible to come back to work and be financially independent”, says Nicolas Crochet who is planning to extend Fund For Goods’ activity to the Netherlands and Luxembourg.
Click here for the presentation.