Policy makers, stakeholders, investors and practitioners in the European mi-crofinance sector need robust market data to develop the sector and improve framework and funding conditions for microcredit provision throughout the EU. In particular, the preparation of the next generation of centrally managed EU instruments in the field of microcredit (post-EaSI) calls for comparable market information on the potential demand of business microcredit and the funding needs of the non-bank MFIs that provide these products. Market information and funding needs are not yet covered by the joined survey activity of the European Microfinance Network (EMN) and the Microfinance Centre (MFC).

Therefore, in 2017, these networks commissioned evers & jung to produce this initial study on a) the options for an approach to produce such market information at EU level on a regular basis and b) a first calculation of the estimated market potential and funding needs by 2020. The report ad-dresses the following key research questions:

• How to assess the total market size and potential for business micro-credit in Europe?
• How to assess the role of non-financial service provision for business microcredit clients?
• How to link the funding needs of the European non-bank microfinance sector to the assessed market situation for business microcredit?
• How to project the development of the market situation and the related funding needs to 2020 and beyond?