Start announcing incentives to defend the production of SMEs

The Ministry of Production announced changes in the System of Mutual Guarantees (RMS) in the week so that SMEs can access better financing conditions, formulated for a long time by the sector. 19659003] Thus, SMEs will be able to access the guarantees in less time and at a lower cost and simplify the day-to-day operations of the RMS, enabling them to offer a more agile, dynamic and efficient service.

"We want to give nature the meaning by which the RMS was created: to be an instrument of inclusion for small and medium-sized companies We will be very demanding: we want to reach 100,000 SMEs in 2023" , summarizes Dante Sica

The changes are divided into two axes: first, more important requirements will be imposed on the SGR (in terms of the volume of guarantees granted to SMEs), as a condition of the SAG. tax relief and the realization of investors' contributions in the system Procedures will also be simplified with regard to the mechanism for obtaining the endorsement of an SME

SUBSIDIO

At the same time and with the aim of helping SMEs in the current economic situation and with the help of the current exchange rate that makes Argentine products more competitive in the world, the government also decided to subv enlisting 1,000 companies that decide to make their first overseas sales with the "Exporta Simple" program, a platform launched last December to stimulate shipments to the world of lesser volume, small and medium-sized enterprises, as well as entrepreneurs.

The Department of Production has announced that companies wishing to place their products abroad through this program must register, schedule the operation and the state will subsidize the first sale of 100 kilos by DHL and Raico, two of the smugglers who operate across the platform. According to the statement, these companies are participating with a reduction of 80% of the tariff, while the State, through the Argentine Agency for Investment and International Trade, contributes to height of 20%.

IMPORTACIONES [19659003] Public support measures for SMEs took place in the middle of the loss of the domestic market in favor of imports in April 2018 among industrial SMEs, that is to say, before the devaluation of May / June, reaching 33% of In contrast, the proportion of entrepreneurs in Argentina compared to the economically active population is 10% lower than that of Chile and 5% to that of Brazil, and to Some Companies

With few entrepreneurs, "there is no productive modernization possible," says a report from the Pyme Observatory Foundation.

According to this work, local entrepreneurial prospects are also lower than those of other countries. Countries in the region, such as Mexico, Peru and Colombia.

"To get an idea of ​​the magnitude of our entrepreneurial deficit, only to reach the level of Brazil, Argentina should create a million new businesses". Foundation

The number of existing businesses in Argentina is only 20 per thousand inhabitants, while in Chile this indicator reaches 58 companies, Mexico 34 and Brazil 25.

With few entrepreneurs, there is little birth of business ": in Argentina a formal society was born all 2326 inhabitants between 15 and 64 years, in Brazil one every 300 inhabitants and in Chile one all the 125, says the report.

For the Pyme Observatory, "we are badisting Argentina in a process of desertification of commercial resource, the only generator of sustainable jobs. "

FOLLOWING AUTUMN

For its part, a report of the Confederation of Argentine Medium-sized Enterprises (CMEA) warned that in June, for the second consecutive month, there has been a decline in industrial SMEs, where only 34% of companies have increased and the use of installed capacity has fallen to 59.1% .The increase in costs, especially of Inputs, services and financial services are absorbed to a greater extent by business profitability.The highest exchange rate favored exporting firms, but for those that do not export, it is more difficult

The output of industrial SMEs fell 3.9% in June compared with the same month last year, and was the second consecutive month of a drop in production. after 10 consecutive months of growth. Domestic market combined with an international market that requires few Argentine products, depressed industrial activity in June.

Compared to May, there was a decline of 8.4% (to the extent seasonally) the six months of the year accumulate a 1.2% growth over the same period of 2017.

Data come from the CAME's Monthly Survey of Industry among 300 industries of SMEs in the country. The Industrial Production Index Pyme (IPIP) recorded a value of 75.8 points in June

Of the 11 sectors surveyed, 10 fell and only one progressed (still talking about the annual comparison). The only item in increase was the development of "nonmetallic mineral products", with an annual increase of 4.8%, although with difficulties of profitability.

It is that the majority of these companies have their dollar-related entries and have received several adjustments so far this year without transferring much of these increases to their selling prices.