Asuncion, IP Agency.- The Vice Ministry of MSMEs signed five cooperation agreements to expand the ecosystem of allies that help promote and encourage the creation, development and competitiveness of micro, small and medium-sized enterprises, as well as entrepreneurs in Paraguay.
The agreements were formalized with the Paraguayan Chamber of Electronic Commerce (Capace), Paraguayan Chamber of Franchising, Banco Río, Capital Markets Casa de Bolsa SA and Millenia Capital Casa de Bolsa SA, during the event held at the stand of the Ministry of Industry and Commerce at Expo 2024.
The Ministry of Industry and Commerce highlights that 98% of companies created in Paraguay are MSMEs, and 8 out of 10 Paraguayans work in the sector.
According to the latest Bulletin presented by the MIC, there are 366,000 MSMEs with RUC, but, according to data from the National Statistics Institute, there would be around 750,000 business units that operate informally and who should be invited to be part of the formalization, with a range of benefits, opportunities and support for their growth and development.
Vice Minister Gustavo Giménez said that the collaboration is taking place between various entities interested in strengthening this key sector for the national economy, promoting entrepreneurship and the creation of new companies; providing support to micro-enterprises for their formalization and insertion in the market; in addition to facilitating the access of MSMEs to financing, investment, and access to credit.
Likewise, promote training, technical assistance, advice and business development, promote research, innovation and the adoption of technologies in SMEs and entrepreneurs.
Giménez said that one of the main challenges is to provide MSMEs with the opportunity to expand through the use of franchises. The Paraguayan Chamber of Franchises works so that businesses with good growth conditions can use this tool in a simple and agile way, allowing them to project their operations at a national and international level.
He said that in parallel, Capace seeks to boost sales beyond borders, through the use of the Internet and technology. The point is to implement an ambitious digital transformation plan that will be launched in August, providing SMEs with digital tools for collections and sales, maximizing the use of social networks.
Financing mechanisms
Banks also play a crucial role in this strategy, with the aim of directing their services to the microenterprise market. The focus, according to Giménez, is to develop more agile and accessible services, facilitating the financing necessary for these businesses to grow. In this regard, he stated that an important challenge is to provide banking services to MSMEs, since currently 60% do not have a bank account, which is essential to access credit.
The Vice Ministry is also working with brokerage firms to develop alternative financing mechanisms, which will allow businesses to convert their accounts receivable into cash through the stock market, offering an opportunity for both investors and companies in need of capital.
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2024-07-23 04:13:01