American banking giant JPMorgan Chase has launched a funding programme of 2.8 million euros (USD 3.3 million) to help finance small businesses in France.
Talking more about it, Thierry Sancier, senior country officer for JPMorganChase France, told the media, “Small businesses are the backbone of the French economy, and supporting entrepreneurs, especially those from underserved backgrounds, is critical to driving inclusive economic growth.”
As per Sancier, these investments are part of the American multinational banking institution’s USD 70 million business and philanthropic commitment, which the venture made in late 2023.
Today’s announcement deepens JPMorganChase’s support for entrepreneurs and small businesses through two key organisations: 1.8 million euros over three years to Bpifrance to enhance access to capital for 300 entrepreneurs through new acceleration programmes, and strengthen the capacity of business support organisations, which provide resources to help businesses grow and scale. And 1 million euros over three years to Les Determinés to improve access to finance for small businesses through the ‘VC Ready’ programme – preparing entrepreneurs for fundraising and operational growth,” the official continued.
Terming the survival and prosperity of small businesses vital to France’s economy, Sancier noted, “Yet many, especially those led by underserved entrepreneurs—struggle to access timely, affordable capital when they need it most. Recent research from Bpifrance (French national investment bank) and the OECD shows that nearly 30% of small business owners in France face challenges obtaining financing, with entrepreneurs in low-income neighbourhoods twice as likely to be denied credit. These barriers limit growth and opportunity, underscoring the need for targeted support to help small businesses thrive.”
The Bpifrance study further showed that low-income French neighbourhoods have the potential to become sources of innovation and economic growth. Yet entrepreneurs from these areas start with 37% less capital compared to their peers outside these neighbourhoods. To address this, JPMorganChase, as part of its commitment to contributing to the “Entrepreneuriat Quartier 2030” initiative, a cornerstone of France’s 2030 economic inclusion strategy, will be providing 1.8 million euros in support over three years to Bpifrance, which will unlock the growth potential of 300 underserved entrepreneurs in low-income French neighbourhoods.
“The firm’s support will help enhance access to capital for small businesses with growth potential through an intensive 12-month programme combining training, coaching, access to experts and curated matchmaking opportunities. This support also aims to strengthen the capacity of 60 business support organisations by funding training academies, digital tools, impact learning and evaluation frameworks,” Sancier said.
While allotting 1 million euros over the next three years to support Les Determinés, a non-profit organisation focused on supporting entrepreneurs from underserved communities across France, JPMorgan will also be funding the “VC Ready Programme,” which operates under the umbrella of the Time4 initiative, a strategic alliance with platforms like Daphni SAS, Les Determinés, Live for Good, and HEC.
In partnership with Live for Good, Les Determines will prepare underserved entrepreneurs for their first equity fundraising. The “VC Ready Programme,” on the other hand, will support 210 entrepreneurs through a six-month tailored programme to build their fundraising plan, in addition to preparing their fundraising pitches. The programme, in collaboration with the Time4 initiative, aims to develop a model for more inclusive investment practices.