Way out Program: Social Self Employment and Microcredit Program in Hungary

A - DESCRIPTION OF THE GOOD PRACTICE

A1 - Title in original language
KIÚT Program: Szociális mikrohitelezés és önfoglalkoztatás lehetősége Magyarországon

A2 - Title in English
Way out Program: Social Self Employment and Microcredit Program in Hungary

A3 - Location of GP (national)
Hungary

A4 - Location of GP (regional)
Hungary (It was a national program)

A5 - Economic field of activity
S Other service activities

A6 - Ultimate purpose of GP
To improve social cohesion/inclusion
To provide educational opportunities
To create or conserve employment

A7 - Spatial scale National

A8a - Start date
June 2010

A8b - Anticipated end date (if applicable)
September 2012

A9 - Short description of the GP
Promoting social mobility and Roma integration

A10 - Key words relating to the GP
to become self-employed
microcredit
personal development consulting
optimizing social and financial assets
intensive permanent fieldwork

A11 - Objectives of the GP
The program aims to encourage people living in extreme poverty - especially Roma people - with social support, financial services and providing information to become self-employed thus will be able to improve their social status and to create a livelihood for themselves and their families. It focuses on creation of sustainable enterprises which are related to the normal circulation of the local economy.

A12 - Activities that have taken place

1. elaboration of the model and basis of the lending activity
2. fieldwork, establishment of groups, selection of target group
3. optimizing social and financial assets
4. loan disbursements
5. personal counseling, support to become entrepreneur

A13 - Achievements of the GP

• groups which received loans were established in 38 settlements
• total amount of 70,5 million HUF (235 000 EUR) as loan was distributed for 138 clients
• 60% of the debtor who received credit in the 2nd phase of the credit disbursement pursue business in the formal sector after the 1st year
• repayment of credit will be in total around 55-60% despite the fact that it is a pilot project and the economic environment is less favourable year by year