MicroBank contributes to the creation of 1,679 direct jobs in 2023 in the Canary Islands through support for entrepreneurs
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MicroBank, CaixaBank’s social bank, has contributed to the creation of 1,679 direct jobs in the Canary Islands in 2023 through entrepreneurs who have received a microcredit or loan from the entity, according to a study on the social impact prepared by KPMG Asesores and Stone Soup Consulting. In Spain as a whole, the contribution to employment amounted to 28,521 jobs, a figure that represents a growth of 63.4% compared to 2022 and is due to the growth in the activity of the entity, which granted financing with social impact for of 1,383 million euros in 2023, 36.2% more.
According to the report, the main contribution to the labor market is through self-employment but, in addition, 29% of businesses have created new jobs for other people since the loan was granted. Also, the 45% of businesses plan to hire new workers this year. On the other hand, in addition to the direct creation of employment, the businesses supported by MicroBank generate a multiplier effect in the economy thanks to the auxiliary activities necessary for their development.
Also, the 79% of entrepreneurs feel more optimistic about the future of their company and family. In total, 8,621 businesses were started last year with the financial support of the CaixaBank social bank, compared to 5,876 in 2022.
The report also highlights that young people under 35 years of age, as well as women and people previously unemployed, are groups favored by job creation through MicroBank microcredits and loans.
“The contribution data to job creation in 2023 is more positive than ever and is the best reflection of the social impact generated by MicroBank’s activity,” explains Cristina González Viu, general director of the entity. In turn, she wanted to highlight “the fundamental role that microenterprises and entrepreneurs have in the axis of the productive fabric and in the country’s economy.”
The study also shows that the majority of employment linked to the activity of businesses financed by MicroBank corresponded to the professional services sector (39%), followed by retail trade (23%) and hospitality and catering (20%). %) and construction (9%). The rest is distributed between the primary sector and businesses related to new technologies.
Impact on society
During 2023, thanks to the driving effect of its activity, the businesses supported by MicroBank contributed with 4,468 million euros to the Spanish economy – which represents 8.7% more than in 2022 -, of which 2,266 million euros directly and 2,202 million euros indirectly and induced. The global amount is equivalent to 0.3% of Spanish GDP.
Over the past year, MicroBank granted up to 138,020 microcredits for value of 1,115 million euros. These operations include both those intended to meet specific needs of families and microcredits focused on the creation or consolidation of businesses. In addition, MicroBank granted 6,453 loans to sectors with social impact, such as education and the social economy, for an amount of 268 million euros.
Through its activity and business model, MicroBank contributes to the United Nations Sustainable Development Goals (SDGs). Specifically, three priority SDGs have been identified: 8 (decent work and economic growth), 10 (reduction of inequalities) and 17 (partnerships to achieve the goals). These three SDGs, in turn, are interrelated with six others, to which MicroBank also contributes in a transversal way and which have to do with job creation, the promotion of productive activity and economic development, financial inclusion, gender equality and the impact on the social economy.
Sustainable banking
MicroBank responds to different segments of the population whose financial needs are not sufficiently covered. It has a determining role in the Sustainable Banking Plan, integrated within the CaixaBank Strategic Plan, in which it is entrusted with the mission of promoting financial inclusion, facilitating access to credit for the most vulnerable groups, as well as strengthening its commitment to the socioeconomic development of the territory.
As the sole shareholder of MicroBank, CaixaBank has supported its social bank since its creation, providing it with the necessary financing for the growth of its lending activity and marketing its products through CaixaBank’s extensive commercial network to make the full range of options available to customers. with the highest quality of service and proximity possible.
In granting microcredits, 270 entities throughout Spain also actively collaborate, providing knowledge of the recipients of the loans, in addition to advising and monitoring the projects.
Likewise, MicroBank has the support of the main European institutions dedicated to promoting entrepreneurship and microfinance. These are the European Investment Fund (EIF), the Council of Europe Development Bank (CEB) and the European Investment Bank (EIB).
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