Microcredit: When a small loan creates a significant impact
Analysis and perspectives for the National Agency for Microcredit
In today's economic landscape, marked by profound uncertainty due to international tensions, environmental and climate crises, and the rapid spread of disruptive technologies, access to credit remains a crucial factor for the growth, competitiveness, and sustainability of Italian enterprises, especially micro and small businesses.
In this context, microcredit emerges as an essential tool to support micro-enterprises, self-employed individuals, and those most vulnerable and less resilient to external economic shocks.
The National Agency for Microcredit (ENM) plays a key role in this regard, promoting the dissemination of microcredit and microfinance, providing recipients with technical assistance and mentoring services, and monitoring their impact on a national scale. The Agency's mission is to foster the development of micro-entrepreneurship and self-employment, as well as social and financial inclusion.
Regg3 has supported the Agency in a strategic analysis aimed at guiding its actions and evaluating the social and economic impact of microcredit in Italy, with a particular focus on three key areas: Employment, Education, and Income.
In this context, microcredit emerges as an essential tool to support micro-enterprises, self-employed individuals, and those most vulnerable and less resilient to external economic shocks.
The National Agency for Microcredit (ENM) plays a key role in this regard, promoting the dissemination of microcredit and microfinance, providing recipients with technical assistance and mentoring services, and monitoring their impact on a national scale. The Agency's mission is to foster the development of micro-entrepreneurship and self-employment, as well as social and financial inclusion.
Regg3 has supported the Agency in a strategic analysis aimed at guiding its actions and evaluating the social and economic impact of microcredit in Italy, with a particular focus on three key areas: Employment, Education, and Income.
What is the National Agency for Microcredit?
The National Microcredit Institution (ENM) is a non-economic public entity that operates in Italy and worldwide to support economic and social development. With regard to its operations in Italy, ENM's activities can be divided into three main areas: support for businesses and families through, respectively, entrepreneurial microcredit and social microcredit, project initiatives, studies, and research.
ENM aims to facilitate access to credit for those who face difficulties obtaining basic financial services. Through an extensive network of offices spread across over 80 municipalities, 46 provinces, and 13 regions in Italy, ENM provides assistance to micro-enterprises, entrepreneurs, and freelancers, helping them on their path to growth and consolidation.
Its work extends beyond the mere provision of microcredit, also involving development projects that support sustainable growth and guide its activities to analyze their impact on local communities. This approach allows ENM to adapt and optimize its strategies, promoting greater financial and social inclusion.
ENM aims to facilitate access to credit for those who face difficulties obtaining basic financial services. Through an extensive network of offices spread across over 80 municipalities, 46 provinces, and 13 regions in Italy, ENM provides assistance to micro-enterprises, entrepreneurs, and freelancers, helping them on their path to growth and consolidation.
Its work extends beyond the mere provision of microcredit, also involving development projects that support sustainable growth and guide its activities to analyze their impact on local communities. This approach allows ENM to adapt and optimize its strategies, promoting greater financial and social inclusion.
How does Regg3 support the National Agency for Microcredit?
Regg3 applied its regenerative impact assessment model to quantify the contribution of microcredit to employment growth and the improvement of beneficiaries’ economic conditions. Thanks to an in-depth analysis, it was possible to highlight the role of the Institution in facilitating access to credit, supporting the creation of new businesses, and improving the financial stability of those who received funding.
The impact of microcredit was analyzed with reference to three main areas: Employment, Income, and Education. In terms of employment, in the 2023–2024 period, microcredit contributed to the creation of 10,173 new jobs, leading to a 0.4% reduction in the national employment gap*. Regions most affected by unemployment, such as Campania and Sicily, benefited significantly, with 1,464 and 1,502 new jobs respectively. Specifically, the Institution, through disbursements made by partner banks, contributed to reducing the employment gap by 0.091%, creating 2,320 jobs within the total microcredit impact.
Regarding income, the financing provided through microcredit prevented 10,302 individuals—equivalent to 0.13% of the Italian population—from falling below the poverty line, helping reduce the national income gap1. From a monetary perspective, the total amount of microcredit disbursed contributed to bridging 1.402% of the gap expressed in monetary terms. Thus, microcredit helped reduce poverty by both lowering the number of people below the threshold and narrowing the economic gap in relation to minimum income. However, the main indicator of its effectiveness remains its ability to increase the number of individuals exceeding the minimum income threshold. In particular, the Institution, within the total impact generated by microcredit, contributed—through its partner banks—to a 0.031% reduction in the income gap, corresponding to 2,449 beneficiaries of entrepreneurial and social microcredit.
The area of education represents a significant challenge. Although the ENM promotes financial literacy programs, the impact on improving education levels was assessed as neutral, since the specific actions fall outside ISCED2 parameters, making their impact not comparable with national data on formal education. The upper secondary school enrollment rate in Italy stands at 83.22%, still below the 95% target, while the completion rate among those enrolled reaches 97.45%, remaining slightly under the 100% threshold. As for tertiary education, the enrollment rate is stuck at 19.37%, below the minimum threshold of 28%, while the completion rate stands at 27%, compared to the 30% benchmark.
1GAP: The distance between the threshold and a context, representing the space in which the target operates (has an impact/effect).ISCED: Classification in accordance with the 2 2International Standard Classification of Education, the international system defined by UNESCO that standardizes educational systems across different countries.
The impact of microcredit was analyzed with reference to three main areas: Employment, Income, and Education. In terms of employment, in the 2023–2024 period, microcredit contributed to the creation of 10,173 new jobs, leading to a 0.4% reduction in the national employment gap*. Regions most affected by unemployment, such as Campania and Sicily, benefited significantly, with 1,464 and 1,502 new jobs respectively. Specifically, the Institution, through disbursements made by partner banks, contributed to reducing the employment gap by 0.091%, creating 2,320 jobs within the total microcredit impact.
Regarding income, the financing provided through microcredit prevented 10,302 individuals—equivalent to 0.13% of the Italian population—from falling below the poverty line, helping reduce the national income gap1. From a monetary perspective, the total amount of microcredit disbursed contributed to bridging 1.402% of the gap expressed in monetary terms. Thus, microcredit helped reduce poverty by both lowering the number of people below the threshold and narrowing the economic gap in relation to minimum income. However, the main indicator of its effectiveness remains its ability to increase the number of individuals exceeding the minimum income threshold. In particular, the Institution, within the total impact generated by microcredit, contributed—through its partner banks—to a 0.031% reduction in the income gap, corresponding to 2,449 beneficiaries of entrepreneurial and social microcredit.
The area of education represents a significant challenge. Although the ENM promotes financial literacy programs, the impact on improving education levels was assessed as neutral, since the specific actions fall outside ISCED2 parameters, making their impact not comparable with national data on formal education. The upper secondary school enrollment rate in Italy stands at 83.22%, still below the 95% target, while the completion rate among those enrolled reaches 97.45%, remaining slightly under the 100% threshold. As for tertiary education, the enrollment rate is stuck at 19.37%, below the minimum threshold of 28%, while the completion rate stands at 27%, compared to the 30% benchmark.
1GAP: The distance between the threshold and a context, representing the space in which the target operates (has an impact/effect).ISCED: Classification in accordance with the 2 2International Standard Classification of Education, the international system defined by UNESCO that standardizes educational systems across different countries.
Regg3 and ENM: A strategic collaboration for Social Development
This collaboration has demonstrated the crucial importance of measuring social impact to ensure that public and private resources are invested effectively and that benefits are tangible and lasting. The analysis conducted by Regg3 not only serves as valuable support for the Agency to optimize its strategies but also provides useful tools to improve dialogue with institutions and stakeholders, strengthening transparency and credibility in the microcredit sector.
Access to structured and measurable data is key to transforming inclusive finance into a real engine of change. With Regg3, impact is not just a goal but a measurable and appreciable reality.
Access to structured and measurable data is key to transforming inclusive finance into a real engine of change. With Regg3, impact is not just a goal but a measurable and appreciable reality.