During the second session of “Ibero-American Voices: Transformation and Attraction”, held at the 7th Ibero-American SME Forum in Tenerife, the Deputy Minister of SMEs of the Government of Paraguay, Gustavo Jiménez, presented alarming data about the lack of access of SMEs to the financial system in his country. According to Jimenez, 43% of these companies do not even have a bank account, which seriously hinders access to financing and access to basic financial services. This situation served as the starting point for a discussion in which participants from different countries analyzed the main challenges hindering the survival and growth of SMEs in the region, warning that without accelerating legislation and financing processes, many of them will not be able to sustain themselves over time.
According to Europa Press, representatives of Paraguay, Uruguay, Brazil and the Inter-American Technical Standards Committee (COPANT) agreed to point out the urgent need to remove the administrative and financial obstacles experienced by Ibero-American entrepreneurs. President of the Uruguayan Chamber of Commerce and Services, Julio César Listido, stated that the survival of micro, small and medium enterprises is threatened by excessive regulations, stressing that “if a significant amount of regulation is not removed, it is impossible for them to survive.” Listido insisted that regulatory simplification and improved access to finance should be at the top of the region’s agenda, due to the pressures these companies face to adapt to increasingly rapid changes in the business environment.
Jimenez stressed the importance of providing clear incentives for companies to formalize and become part of the legal market, allowing them to access new opportunities and provide better conditions for their workers. He proposed as a concrete measure the facilitation of exports through small-sized shipments, thus businessmen seek to see the international market as an accessible goal and not as a distant space. The Paraguayan official also proposed the creation of a regional experience-sharing platform, where companies and governments can exchange relevant information, concrete recommendations and create cooperation dynamics that would reduce learning gaps in the region.
According to Europe Press, the need for MSMEs to adapt to market shifts was another focus of the meeting. Listido stressed that the speed of transformation represents a particular challenge for micro, small and medium-sized businesses, and that even large enterprises face great difficulties in staying up to date in such a changing context. This demand for adaptability is exacerbated in the case of MSMEs due to limited resources and administrative burden.
These difficulties affect not only companies of different sizes, but also different territories and regions within countries, noted Corey Egweno, Executive Secretary of Copant. Egweno recognized the pressure of the excess of available information and “little time to learn” faced by small business owners, who must manage their businesses while trying to absorb new knowledge and adapt to regulatory and market requirements. In addressing this phenomenon, Egwenu highlighted at the forum the need to find effective mechanisms so that relevant information reaches those who need it in a timely and clear manner, avoiding information saturation.
Europa Press also reported the intervention of Pedro Rafael, Trade Director of the National Confederation of Young Entrepreneurs of Brazil (CONAGI), who described the situation using the term “bureaucracy” to refer to the regulatory framework that characterizes many countries in the region. According to Rafael, the development of SMEs requires active promotion policies and a firm commitment to training entrepreneurs. For him, the main obstacle to the progress of these companies lies in two main aspects: legal formalization and access to financing, challenges that he considers a priority to deal with.
All the interventions collected by Europa Press at the Forum highlighted the need for countries and business organizations to collaborate in creating tools, policies and training spaces aimed at facilitating the adaptation of MSMEs. Sharing good practices and generating common platforms, according to the voices present in Tenerife, can help reduce current difficulties and promote economic growth for tens of thousands of small businesses in the Ibero-American region.
During the session, the various voices reviewed concluded that the scenario for MSMEs has become particularly complex due to the increase in the volume of information and the lack of time to adopt new regulations or market trends, which further deteriorates the chances of success of new projects. Thus, the roundtable organized within the framework of the Ibero-American Mipyme Forum laid the foundations for discussing upcoming initiatives and strengthening regional cooperation, which, according to Europe Press, is essential in the context of the vulnerability experienced by millions of small and medium-sized enterprises in Latin America and the Iberian Peninsula.