800 job opportunities created thanks to granted Microcredits
Kralendijk, August 19, 2021 – At the end of 2020, in connection with the 5th anniversary of Qredits in the Caribbean Netherlands, a survey was conducted among clients from Curaçao, Aruba, Bonaire, and the Windward Islands to measure the social impact of Qredits before and after the COVID-19 crisis. This is the first time that the social contribution of Qredits in the islands has been measured, with the intention to continue measuring it periodically. The ‘highlights’ of the results and the ‘spin-off effect’ of the granted microcredits up to 2020 were summarized in a report titled ‘Qredits Caribbean Social Impact 2020.’ The report was prepared by SEO Economic Research Amsterdam. The results from Bonaire reaffirm that Qredits has achieved its social and economic objectives on the island.
In 2009, Qredits Microfinancing Netherlands began as a social financial institution, providing funding to (new) entrepreneurs who were unable to access financing from Dutch banks. Today, over 25,000 entrepreneurs have been supported and financed, totaling 500 million euros. Qredits also offers coaching and a variety of courses to entrepreneurs. Qredits has been active in Bonaire since 2015, on Aruba and the Windward Islands since 2017, and in Curaçao since 2018.
"It is often said that SMEs are the engine of the economy. That’s why it is so important for a healthy economy to stimulate and support new businesses. Access to financing and guidance for startups plays a significant role in this. This is exactly why Qredits was founded in the Netherlands in 2009 and has been active with Microfinancing on all the islands in the Kingdom since 2015," says Elwin Groenevelt, founder and director of Qredits.
Qredits in Bonaire has granted over 8 million dollars in loans through 267 Microcredits for investments and 20 bridging loans up until 2020. Thanks to the bridging loans, Qredits has been able to assist existing entrepreneurs affected by the COVID-19 lockdown with loans featuring attractive conditions and interest rates to help them bridge the gap for the future. As a result, many people were able to retain their jobs during a very difficult period. According to SEO’s research, 800 jobs have been created in Bonaire over the past five years through Qredits’ contribution to the entrepreneurial sector. Additionally, 70% of the entrepreneurs who received financing from Qredits stated they would not have been able to start their business without Qredits’ support.
These are impressive results that continue to grow year by year, proving that start-ups are the engine of an economy. The research also indicates that 75% of the businesses funded by Qredits remain active after three years. This translates into reduced government spending because, thanks to Qredits’ loans, several entrepreneurs have become financially independent through the income generated by their businesses. Some have been able to exit social assistance or have employed people who were previously receiving assistance. This financial progress shows that Qredits has contributed to reducing social welfare costs for the Bonairean government by a total of approximately USD 230,000.
Groenevelt: "Qredits is a social lender that provides microfinancing to entrepreneurs. The fact that it operates as a social enterprise in the financial sector is unique in the Netherlands and the Caribbean islands within the Kingdom. Qredits’ social mission manifests in many different areas. For example, Qredits is more personal and social when assessing an application compared to other (commercial) lenders. Additionally, Qredits offers its clients a variety of training programs and, of course, coaching. All of this is aimed at making entrepreneurs stronger, more resilient, and more successful." With its rollout of microfinancing on the Caribbean islands, Qredits is not only a ‘best practice’ from the Netherlands but also a key driver of job creation for the economies on the islands.
The government of Bonaire can certainly be proud of the contribution and the "spin-off effect" of Qredits Bonaire.
