They held a public hearing to study modifications to the law on MSMEs

Asunción, IP Agency.- With the purpose of promoting the development and competitiveness of Paraguayan Micro, Small and Medium Enterprises (MSMEs), a Public Hearing was held on the Bill intended to modify various articles of Law No. 4457/12 that governs to this sector.

The meeting was organized by the Senate Industry and Commerce Commission, and included the participation of Vice Minister Gustavo Giménez, Senators Patrick Kemper; Luis Alberto Pettengil; and Carlos Núñez Agüero; as well as other national authorities and representatives of different MSME and entrepreneurship associations.

Promoting the development and competitiveness of Micro, Small and Medium Enterprises through quick, easy and cost-free formalization is one of the objectives of the Vice Ministry of MSMEs of the MIC, which has been working on modifying the regulations for months together with the Industry and Commerce Commission of the Senate, as well as the various unions that bring together this sector.

It is worth mentioning that the document has the support of the main MSME unions and Paraguayan entrepreneurs’ associations.

What the modifications imply

Achieving interconnection between state entities so that procedures are completely online, tax and credit incentives, access to new markets, public purchases and training, are some of the goals that are intended to be achieved with the changes to current regulations.

The initiative aims to improve the social protection and security of microentrepreneurs, induce differentiated procedures and processes in the banking and financial system that facilitate access to credit, access to differentiated rates with emphasis on incentives for micro and small businesses, as well as such as reducing informality, increasing competitiveness, creating more jobs, improving working conditions and promoting the country’s economic development.

Sector situation

During his speech, the Vice Minister of MSMEs, Gustavo Giménez, mentioned that there are 366,977 MSMEs with RUC in the country, and that 98% of companies with RUC are MSMEs and only 2% are large companies. Furthermore, this economic segment supports 75% of employment nationwide.

Likewise, he indicated that, of all formalized MSMEs, 88% are microenterprises, 10% small and 2% medium-sized. He pointed out that 15.3% of MSMEs with RUC are registered in the IPS (56,271), and of these; 77% are registered with the Ministry of Labor and Social Security (43,249).

He recalled that the Vice Ministry of MSMEs has two missionary laws, which are; Law No. 4457/12 on Mipymes, and legislation No. 5669 on Entrepreneurship. Regarding the first, he maintained that the institution is working on three main pillars, which is formalization and that it be agile, simple, inexpensive and 100% digital, which through the MSME Certificate allows the sector to open benefits keys. Access to credit and access to markets.

The modification project is being studied in the advisory committees of the Upper House, it will later be ruled to be analyzed by the plenary session of senators, for which Giménez indicated that the half sanction might be given in the month of July.