Purpose: Small and medium-sized entities (SMEs) operating in the alternative financing sector are typically heterogenous in nature making them differ greatly from traditional banks. Where traditional banks must comply with strict banking regulations, developing uniform regulations for the alternative financing sector remains a challenge. This paper examines the current challenges and solutions from a sociological and institutional perspective in developing standards for SMEs operating in the alternative financing sector in the Netherlands. Adopting minimum quality standards should lead to increased transparency and public trust in the non-banking sector.
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This paper provides insights into the operational features of community-based financing mechanisms. These include CAF groups, which are self-financed communities where people save and lend money to each other. The implementation of such self-financed communities in the Netherlands is supported by Participatory Action Research (PAR). This paper discusses the first results of this research by exploring whether and how participation of group members can improve their well-being with regard to social networks, financial household management and entrepreneurial positioning based on the capability approach of Amartya Sen, a well-known economist. For this PAR, three groups were formed, guided, observed, analysed and compared. This paper demonstrates how solidarity economy processes at the grassroots level can contribute to the general well-being of vulnerable people in the Netherlands. For the particular context of overconsumption, inequality and overindebtedness, Sen’s notion of freedom will be reconsidered and adjusted.
This feasibility report aims to create a solid background for Savings Groups programming in Italy, Spain, Germany, Poland and the Netherlands where partner organisations of the LETS SAVEE1 project are based. This Erasmus+ funded project aims at exploring the potential of saving groups in the European countries’ context, by improving entrepreneurial skills and access to financial services and social networks of diverse target groups. This particular report provides the partner organisation as well as other interested implementing organisations with a better understanding of how the different contexts influences the setting up and/or scale up of saving groups. This report is set up as follows: The market potential is based on literature of societal developments and how they can be linked to the emergence of saving groups in the respective countries and what kind of target groups have potential for benefitting the services offered by savings groups. By mapping partner organisations, the feasibility study identifies present and potential partners and stakeholders which could play an essential role reaching out to target groups. Then, the study will inform partner organisations and other implementers about the legal framework in each country that allows them to set up Savings Groups accordingly and identify issues that might need advocacy actions. Finally, this report provides a mapping of risk factors and ways to mitigate risks for savings groups members that were applicable for all partner organizations.
