At just 16 years old, while working in a bakery in Paraguay, Vanessa realised she had found her calling. While others continued their studies, she chose a different path, staying close to the work that inspired her most: serving customers with care, leading a team and delivering quality products while supporting local producers.
Now 27 and living in Brussels, she still prepares drinks and sandwiches with the same care and respect for the craft she discovered as a teenager. The only difference is that she now owns the business. While young entrepreneurs remain largely underrepresented across Europe, how was Vanessa able to turn her vision into a reality?
Turning a set back into a start-up
Upon arriving in Belgium, Vanessa was determined to start her own business. However, the COVID-19 crisis brought her plans to a halt, leaving her without work. It was only when her mother, Graciela, proposed opening a bakery in Uccle (Brussels area) that Vanessa’s dream began to take shape.
Working in the family bakery helped her to define more clearly the kind of environment she aspired to create: a place where people could pause, either alone or together, free from pressure or haste. Vanessa saw an opportunity to build on the family venture and bring this vision to life.
In November 2025, Telle mère, telle fille (“Like mother, like daughter”) opened its doors, blending the spirit of a traditional family bakery with the welcoming atmosphere of a café.
No longer a “missing entrepreneur”
Across the EU, a group of around 812 000 young people see their entrepreneurial ambitions unrealised. The OECD refers to them as the “Missing Entrepreneurs”.
What sets Vanessa’s journey apart from the “Missing Entrepreneurs” is that she accessed important support at a pivotal time. With the help of Microstart, the Belgian microfinance institution (MFI) that had supported the family bakery a few years earlier, she secured a
EUR 15 000 microcredit along with business development sessions. She is now one of approximately 850 000 people across the EU who have brought their projects to life with the help of microfinancing.
While Vanessa’s story shows the value of microfinance, her path is one not often considered by young entrepreneurs. More than half of MFIs in the EU explicitly target young entrepreneurs , yet they account for only 21% of clients on average. Common barriers such as lack of collateral or credit history affect all MFI clients, but young entrepreneurs face additional constraints linked to limited business or professional experience. MFIs frequently cite this as the main obstacle to serving this group effectively.
A lifeline for young entrepreneurs
MFIs widen access to entrepreneurship by providing small loans to the smallest businesses, the self-employed and people who are often excluded from mainstream finance, including women, migrants, people living in rural areas, the unemployed and young people. In the European Union, MFIs range from non-profit institutions to credit unions and non-bank financial institutions supporting businesses across all stages of development.
What distinguishes MFIs is their non-financial support. Coaching, mentoring, training and networking help prepare entrepreneurs for success. For young entrepreneurs, while this support does not automatically lead to a loan, it helps prevent over-indebtedness and financial risk.
These services help young entrepreneurs to see entrepreneurship as a career choice and build the skills needed to develop sustainable businesses.
The combination of financial and non-financial support delivers tangible results. A 2021 Microstart study found 70% of start-ups remained active after two years, and 82% of supported entrepreneurs remained employed, either self-employed or salaried. Even when businesses closed, entrepreneurs were better equipped to re-enter the labour market.
Microfinance also generates high social returns and can reduce reliance on welfare systems. For example, for every euro invested by Microstart it produces €2.53 for the community within two years, thanks to tax and social security contributions.
Helping the helpers: supporting microfinance will empower young entrepreneurs
Microfinance has strong potential to support young entrepreneurs in Europe, but increasing its uptake requires action on several fronts.
Stronger public support
MFIs are uniquely equipped to serve vulnerable populations, but these efforts come with costs that must not be shifted onto borrowers, as this would deepen the vulnerabilities microfinance seeks to alleviate. Public support such as portfolio guarantees, low interest loans for on-lending and grants/subsidies for non-financial services are essential to keep these services accessible and affordable.
For example, through EU level programmes developed by the European Commission such as the European Progress Microfinance Facility (EPMF), EaSI and InvestEU, the European Investment Fund (EIF) has deployed portfolio guarantees and debt solutions that deliver measurable social impact – aiming to mobilise nearly EUR 16 billion over 15 years. This support has reached more than 350 000 entrepreneurs who were previously excluded from the financial system, helping to create or safeguard over one million jobs across Europe.
Most strikingly, 67% of these entrepreneurs would never have considered approaching a bank on their own. This is financial inclusion in action: confidence restored, barriers removed, and potential unlocked.
Better outreach to young entrepreneurs
Too many potential young entrepreneurs are unaware of microfinance. Targeted outreach, education and partnerships are needed to make microfinance more visible and accessible.
Youth Business Spain (YBS) addresses this gap by connecting aspiring young entrepreneurs with the resources they need to launch their businesses, while also helping service providers expand their reach. To date, YBS has facilitated EUR 600 000 in microloans, mentored 3 500 businesses, supported the creation of 4 000 businesses, and reached 20 000 young entrepreneurs.
A friendlier entrepreneurial ecosystem is essential to support microfinance tools
The challenges reported by MFIs and young entrepreneurs extend beyond financial access to structural and capacity-related constraints. MFIs cannot address these alone. Sustained collaboration with governments, development agencies and business development service providers is necessary to ensure vulnerable groups receive the comprehensive support to build viable enterprises and resilient livelihoods.
For young people like Vanessa, a micro loan/microfinance can do much more than open a business. It can open a path into work, confidence and independence. If Europe wants more young people to turn ambition into action, microfinance needs to be seen not as a niche tool, but as part of a broader effort to make entrepreneurship genuinely within reach.
See the OECD’s The Missing Entrepreneurs 2023 Report: Policies for Inclusive Entrepreneurship and Self-Employment.
Marie has been working as Advocacy Director at the European Microfinance Network (EMN) since 2021. In this role, she coordinates advocacy initiatives and organises the Advocacy Committee. She represents the Network at the GECES and the FSUG and contributes to the organisation of the European Microfinance Day and the Annual Conference. Prior to joining EMN, Marie worked as a paralegal in a law firm in the UK before joining the European Commission as an intern. She gained experience in the NGO and financial services sectors, first at Better Finance and then as a consultant in financial services. Marie holds a Master’s degree in EU Economics and Competition Law from Panthéon–Sorbonne University, and a Master of European Law (LL.M.) from the College of Europe in Bruges.
Nicola works as Research Director at the European Microfinance Network (EMN) since 2015. In this role, he coordinates the yearly survey on microfinance in Europe and oversees regulatory monitoring for non-bank financial MFIs. He also leads the EMN Research Committee, which brings together practitioners, academics, and policy makers. Prior to joining EMN, Nicola gained experience in the social economy sector, spending three years managing a start-up project focused on social inclusion in Italy. In Brussels, he worked for a business federation and a network dedicated to promoting the development of the social economy. In 2014, he gained field experience in Peru, where he joined a cooperative providing financial services and technical assistance to rural microfinance institutions. Nicola holds a Master's degree in International Economic Integration and a Complementary Master in Microfinance from Solvay Brussels School of Economics and Management.