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PerMicro's Social Impact Measurement: Personal and Business Loans & Focus on "under 35" entrepreneurs

Publication Impact studies

Find below the links to download both publications

PerMicro is the first Italian company specialised in offering microcredit to people who do not have access to traditional credit channels because of insufficient credit history or precarious working position.

The project conducted by Tiresia research group aims to develop an ad hoc methodology to measure the social impact generated by PerMicro activities.

This methodology allowed PerMicro to establish effects and benefits generated by the organisation on direct beneficiaries and community in the long period.

The methodology was developed in three steps:

  1. the analysis of existing approaches and tools related to performance and impact measurement of social entrepreneurship organisations;
  2. the evaluation and selection of existing instruments in answer to the needs and peculiarities of PerMicro;
  3. the implementation of the chosen tools to design an ad hoc methodology to measure PerMicro’s social impact.

The methodology was applied to test its feasibility and efficacy and to measure and quantify the social impact generated by PerMicro.

Here PerMicro summarises the calculated impact, thanks to the analysis and the implementation of the ad hoc measurement methodology.

One of the most significant results is definitely the impact generated on those people who, before receiving a loan from PerMicro, had no access to credit through traditional channels. In almost 8 years, more than 700 entrepreneurs and 2.700 families changed their status from non-bankable to bankable.

Among the impacts on public administration, PerMicro underlines the reduction of public expenditure of around 9,6 million euro in total and the increase of governmental income that is around 46 million euro in total, thanks to microcredits to enterprises. Whereas the increase of governmental income due to family microcredits reaches around 12 million euro in 8 years.

In conclusion, it is fundamental to underline the benefits which are generated for entrepreneurs and families in terms of outcomes, ranging from the generation of new jobs, to business growth, to access to medical care, and reduction in the number of families living below the poverty line.