Friday, January 18, 2008

Where Put The Stayfree

New Statute not Bet SME Development

( Published in Estrategia newspaper in January 18/2008 )

recently unveiled the contents of SME Statute, which would aim to support the development of this ailing sector which represents the overwhelming majority of companies more than 90%, gives about 70% of employment, however, represents less than 4% of exports and hopefully 15% of internal billing. The new Statute

SME seeks to promote good regulatory practices to avoid transaction costs, extend the powers to grant temporary permits, including toilets, including facilities providing payment or exemption from payment of provisional patents to companies that apply for the first time. So, too, seeks to promote transparency in the application of fines, reduce the amounts of these smaller companies by replacing them with skills for work, facilitate access to voluntary insurance of occupational accidents and diseases to employers and / or owners of small businesses and special protection rules apply to small businesses when they act as consumers. Moreover, extending the tax credit percentage (4% to 8%) for investments in machinery and infrastructure subscription strengthen Clean Production Agreements. Finally, we propose a support mechanism for insolvent companies to restructure or close.

None of this is wrong, but does not reflect the real problem of small business: market without facing a dynamic and extremely impoverished. This sector does not export to major markets and has no mechanisms to encourage their integration into markets where it has comparative advantages as are the markets of poorer countries, which is due to a foreign policy that looks primarily to the rich markets that buy our commodities premium and where the company has extensive mega arrival because it lies precisely in the area of \u200b\u200bnatural resources. Moreover, the domestic market, which is currently developing the SME market is sluggish due to the enormous concentration of wealth. 80% of Chileans do not have 160 thousand pesos per month to meet your needs. That the purchasing power facing SMEs and the level of resources, we can hardly give more dynamism to this sector, but this new statute is not responsible or perchance the problem.

Marcel Claude, an economist.

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