The report was presented at the workshop called “Access to financing for MSMEs and Entrepreneurs in Paraguay: Changing the Paradigm”, organized jointly by the MIC, the Ministry of Finance and the Inter-American Development Bank (IDB).
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The conference was attended by the different actors in the micro, small and medium-sized business sector.
REPORT. Regarding the specific data, according to the consultancy for the preparation of the National Development Plan for Mipymes in Paraguay, diagnosis of the sector, strategic guidelines and general areas of intervention recommended by the IDB in December 2017, “there is a high gap of productivity and remuneration between the MSMEs stratum and large companies, in terms of formalization, financing and innovation.
Regarding the formalization segment, it mentions that 61% of MSMEs are not registered.
Likewise, it underlines that “71% of employment is not registered in MSMEs, work is not paid in 75% in micro and small companies, while in the case of medium-sized companies it reaches 21%”.
Regarding financing, it points out that 71% of MSMEs do not have access to external financing to the firm. It also adds that 93% of micro and small companies and 52% of medium-sized companies do not have a bank account. Also, only 1% of MSMEs are financed by government institutions.
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