NAB and CSI research on the Microenterprise Loans program launched

National Australia Bank (NAB) in conjunction with the Centre for Social Impact (CSI) today published research into the social and economic impacts of NAB’s Microenterprise Loans program.

‘Small is the new big: Measuring the impact of NAB’s Microenterprise Loan program’is the title of the research report, which reveals that the enterprises supported by the program have a positive economic impact generating $44 million in turnover and having an associated $2.5 million of benefit to community and government.

The report highlighted that National Australia Bank's (NAB) program and its partners were successfully providing a pathway to employment with 30% of the survey recipients indicating they had moved from unemployment to operating an enterprise. The research also found that at least 282 full time equivalent jobs have been created by the enterprises so far.

Joseph Healy, Group Executive, Business Banking, NAB said the research reiterates the value Australia’s entrepreneurs make to Australia’s economy with  every dollar that is spent on NAB’s Microenterprise Loans program, $1.22 of economic benefit is created.

“The microenterprise loan program addresses the problem of enterprises facing barriers to accessing mainstream finance, said Les Hems, Director of Research, Centre for Social Impact. “Microfinance is often associated with developing countries but the research shows that a program like this can make a real and meaningful difference to Australians and the Australian economy.

“This is a prime example of the value of collaborative research and also the value of measuring and being able to demonstrate social impact, and we look forward to seeing where NAB, its partners and government take this program in the future,” Les Hems said.

Research was undertaken from October to December 2011 obtaining a sample of 313 recipients with economic modelling based on a cohort of 746 loan recipients. ‘Small is the new big: Measuring the impact of NAB’s Microenterprise Loan program’ embodies the third phase in a wider research program for NAB and CSI exploring microenterprise and financial exclusion.

Read a copy of the report.