Give me credit! Microcredit for sustainable development and ethical finance in Rione Sanità, Naples

Purpose

The purpose of microcredit is to offer small loans to people who are not covered by traditional financial channels. It can facilitate entrepreneurship, boosting local socio-economic development and improving environmental and political factors.

Design/methodology/approach

This paper aims to analyse microcredit in Italy, focusing on a project based in Rione Sanità, Naples. Rione Sanità is one of the poorest areas of Southern Italy, displaying high rates of criminality and unemployment, especially among youth, women, migrants and the vulnerable. The district is renowned for its fine and ancient handicrafts, food, trade and historical heritage – potential drivers for boosting tourism in the area. Qualitative methodologies were used to collect primary data through field visits and interviews with project bankers, local businesses, artisans, associations and religious representatives, project volunteers, as well as participation at local meetings. These data were corroborated by budget analysis based on the project's accounting.

Findings

The study shows encouraging results for the project and policy prospects. Despite the tiny starting numbers, there emerges a significant potential for microcredit to spread in the district, as in Southern Italy, providing an effective strategy to combat unemployment, usury and criminality, yielding community development and favoring broad societal challenges.

Originality/value

With this evidence, the paper attempts to shed some light and verify the potential of microfinance projects as a driver of sustainable development and ethical finance in poor areas of developed countries.