Erste Group operates in the above mentioned countries. As Erste Group’s main shareholder, ERSTE Foundation supports the bank’s efforts to improve the financial stability of customers not usually eligible for bank support. Erste’s Social Banking programme cooperates closely with local partners to support start-ups, small businesses, social organisations and low-income people. Its services range from financing to mentoring and training. More than 600 social organisations, 19,000 people in financial difficulties, 7,000 small farmers and 3,100 entrepreneurs launching small businesses in areas with high unemployment and poverty have already benefitted from the programme. To date, Erste Social Banking has awarded a total of EUR 235 million in loans, with EUR 65 million allocated in 2018/2019 alone.
This approach has yielded sustainable and measurable success, helping to create 15,000 new jobs and preserve 30,000 existing ones in the region. Successful businesses include a generation café in Vienna, a sheep farm in Romania and a shop selling organic baby clothing in Croatia. The most jobs have been created in agriculture, livestock breeding, transport and communication, retail, education and health, thanks to measures including working capital loans, bridging loans, start-up loans, business training, e-learning, mentoring and business plan evaluations. These measures decisively contribute to the success of borrowers, which reduces the risk for the bank and allows it to help a larger number of people.