Práticas de microfinanciamento em regiões de baixa densidade: o caso do programa FAME

Abstract

The development and sustainability of productive activities in regions with low demographic and economic density are among the main challenges faced by these territories. To effectively overcome the so-called “vicious cycle of poverty”, that is, to endogenously promote business initiatives and, consequently, the creation of jobs and wealth, specific financing mechanisms adequate to the investors’ needs are fundamental. This case study aims at reporting the experience of program FAME (Support Fund to Small and Micro Companies), a financing instrument aiming at small business initiatives with a local scope, initiated in the PortugueseAlentejo region and promoted by the Alentejo’s Regional Development Agency (ADRAL). Program FAME began in 2001 and has always been operated in partnerships with local institutions, involving local councils, venture capital and other financial institutions, and ADRAL itself. It aims at supporting investments to develop and consolidate existing businesses. The relevance of this pioneering initiative has been acknowledged a few years later by a central government body, the Institute for Support to Small and Medium Size Enterprises and Investment (IAPMEI) that, accordingly, has developed Axis III of its Program FINICIA (Financial Solutions to Small Businesses) with an identical structure, allowing this investment support instrument to be currently available all over the country.