El Salvador Introduces Bill for SMEs

The preliminary draft presented by the Ministry of Economy aims to create a favorable environment for Small and Medium Enterprises.

Wednesday, October 27, 2010

The sector represents 99.4% of companies established in the country, demonstrating their importance in the national economy. Within this percentage, there are 463.803 micro family businesses, 148.574 micro and 13.208 small enterprises.

General Provisions: It contains aspects related to nature, scope, purpose, classification and definitions used in the draft, it also sets the objective of the proposal, the promotion of micro and small enterprises and the consolidation of existing units capable of creating jobs and value added products and promoting their integration into the economy. Also sets definitions of what is a micro and small enterprise, which is essential for establishing a general framework which should allow all state institutions to standardize the use of these terms.

Institutional Framework: This refers to the powers of central and local governments to support new entrepreneurs and existing MSEs, through incentives.

Economic Inclusion of MSEs: In this section, aspects of business registration and benefits which entails, in terms of obtaining training services, technical support, legal assistance and others.

It also states obligations of state institutions to promote participation of micro and small enterprises in government purchases. It also empowers municipalities to establish special arrangements on favorable rates and contributions for services, this as an incentive for entrepreneurship and development of MSEs in their municipalities.

In financing, it is determined by two funds: one called Guarantee Fund for MSEs, which aims to guarantee loans, short, medium and long term; the second is a Seed Capital Fund, which aims to promoting social entrepreneurship, seeking to fund projects or companies with environmental technology.

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El Salvador: MSEs to Be Included in Public Procurement

April 2011

Proposed reforms to the country's Acquisitions and Contracts law, combined with a $1.4 million investment, would enable MSEs to bid for government contracts.

If the bill is approved by congress, the government procurement, acquisitions and contracts law (known as Lacap in Spanish) MSEs would obtain 12% of state purchases.

Up to $1.000 in Seed Funding for SMEs

November 2009

In addition to non-reimbursable funds, Panamanian entrepreneurs will receive technical assistance for elaborating business plans.

Congress is discussing Law 35, which comprises the creation of the Entrepreneurship Fostering Fund. This includes a Seed Capital trust fund, and resources for Technical Assistance, Guarantees and Micro-credit.

Panama: COLAC to administer $13 million in Microcredit

July 2011

The AMPYME has given the Latin American Confederation of Credit Unions (COLAC) administration of the trust FIDEMICRO-OPORTUNIDAD.

The Panamanian Authority for Micro, Small and Medium Enterprises (AMPYME) has awarded to COLAC the administration of a $13 million trust, called FIDEMICRO-OPORTUNIDAD, which aims to support over 6,500 micro and small enterprises.

SMEs Lent Only 39% of Available Capital

October 2012

In Costa Rica there are 45 credit programs for SMEs, which in the first six months of 2012 placed $582 million, 66% of which were for the services and trade sectors.

A statement from the Ministry of Economy, Industry and Commerce (MEIC) reads:

Financial institutions placed 242,757,000 colones ($582 million) in loans to SMEs during the first half of 2012

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