More than 70% of MSMEs are informal, reports the MICM

More than 70% of MSMEs are informal, reports the MICM

In the country there is more than one 70% of the micro, small and medium enterprises (MSMEs) following without formalizingdespite the fact that the Government has created mechanisms and incentives for businessmen and entrepreneurs to begin to regularize their businesses.

The information was offered yesterday Monday by the Vice Minister of Promotion of MSMEsJorge Morales, who assured that in the last 18 months in the country more than 30,000 MSMEsthrough the Formalízate program of the Ministry of Industry, Commerce and MSMEs (MICM).

Although he pronounced it an achievement regularization of the MSMEs In recent months, given the consequences of the pandemic caused by the coronavirus, he recognized that the country has a challenge that must be faced with specialization. In total, around 500,000 Business MSMEs in the country, he added.

system for MSMEs

To overcome these limitations, they are developing a system of monkey tribute for small companies that cannot be listed as a large company, so that they can pay a minimum percentage to the State and at the same time be listed in the Social Security Treasury (TSS) under a special regime.

In that order, he added that having a formal business does not mean a tax burdenbut rather an opportunity for businessmen to benefit from the regulatory framework, especially during natural incidents such as the Covid-19 pandemic or to become state suppliers.

Morales qualified the informality as a issue structural situation that exists in various countries in the Latin American region, where the economy is sustained by the production of goods and services. He cited that “in the United States there are many companies MSMEs informal, it is a great task that we have to tackle in the country”.

The vice minister of Promotion of MSMEs also reported that this department registered two million companies or businesses that make up the 98% of the business fabric, contributing to economic growth 38% of the gross domestic product (GDP).

Besides of incentive for the reactivation of the sector MSMEs After the pandemic, the Government has developed several strategies to promote regularization to exceed the goal of informal companies and improve the quality of life of the people who benefit from the two million jobs that this sector generates.

The information was offered to members of the press during the presentation of the program DR Undertakesanother strategy for the promotion of entrepreneurship in the country.

Dominican journalist specializing in economics and finance, graduated from the Dominican O&M University.

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