ASUNCIÓN, Paraguay – According to an announcement by the Ministry of Industry and Commerce (MIC), the average lifespan of domestic microenterprises (small-scale businesses) is only 8 years, significantly shorter than that of small businesses (9-10 years) and medium-sized enterprises (11-12 years). This information was revealed by Vice Minister of the MIC, Gustavo Giménez, at an event hosted by Banco Familiar.
Vice Minister Giménez stated that out of the 450,000 businesses currently under the MIC, 88% are microenterprises, 10% are small businesses, and 2% are medium-sized enterprises. A particularly noteworthy point is that 60% of all businesses either do not have a bank account under their company name or face difficulties in accessing financing through the formal financial system.
The stagnation of microenterprise growth was also highlighted as a serious issue. Only 4% of microenterprises annually manage to grow into small businesses, indicating significant challenges in business expansion and sustainable growth.
The potential of the government procurement market was analyzed as very large. Currently, 20% of the public procurement market is allocated to micro, small, and medium-sized enterprises (MSMEs), representing approximately $600 million in business opportunities. The government is promoting the entry of MSMEs into the massive e-commerce market, where around $2 billion is traded annually, by streamlining purchasing procedures using the "MSME Certificate." However, only 13% of MSMEs currently possess digital tools, highlighting the urgent need for digital transformation support.
Vice Minister Giménez mentioned the SME Support Law (7444/2005), emphasizing institutional support such as exempting microenterprises from incorporation costs for three years after establishment. However, it was revealed that only 11,000 out of the 450,000 microenterprises currently hold the MSME Certificate, indicating a need to promote and improve the utilization of this policy.
This announcement clearly reveals the low survival rate of microenterprises, limitations in financial access, and difficulties in digital transformation. The government must accelerate the development of practical policies, such as expanding financial support, strengthening digital capacity training, and supporting market access, to address these issues. Furthermore, microenterprises themselves need to actively strive to strengthen their competitiveness through business innovation and the adoption of digital technologies.
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