PyMEs: An opportunity for those who need it
In Spanish, PyME is an acronym for “pequeñas y medianas empresas”, known in English as “small and medium-sized enterprises” (SMEs). According to the Chilean Ministry of Economy small enterprises annually sells products or services with values between 2,400 (58.000 CLP approx. ) and 25,000 UF (600.000 CLP approx.). Medium enterprises sell between 25,000 (600.000 CLP approx. ) and 100,000 UF (2.400.000 CLP approx. ). Besides, the number of workers in each enterprise variates from 16 to 250 people.
PyMEs are very important for Chilean economy because they represent a source of employment for the country. According to ChileEmprende, PyMes provide 80% of employment opportunities. Another important point is the fact that they provide 18% of Gross Domestic Product (GDP); they are the starting point for new businesses, developing entrepreneurship in the country; they are a way to overcome poverty; and finally, they are an important source of innovation. PyMEs help to increase the competitiveness in micro, small and medium enterprises and contribute to national economic development. Also, they facilitate access to finance for entrepreneurial projects that are financially feasible, but have not access to the commercial banking system, and are not attractive to the Funds Venture Capital and Private Capital established in the country because of the high risks and high transaction costs involved.
Stable work for women, especially for those living on low incomes, play a decisive role in their lives. There are many organisations that work on trying to improve the lifestyle of families at social risk. Most of these organisations offer women not only money through credits, but training courses and counselling. This way, women are able to start their own businesses and to improve their lifestyles with dignity. In Chile, one of the most famous and long-lasting institutions is “Fondo Esperanza”, found created on 1996, which has helped more than ten thousand people across the country to start their own business. According to the statistics collected by the Fondo Esperanza, 82% of the people they help are women, and about 45% of them are the only providers of the household.
Between 1992 and 2004, according to the Census, the female-headed households raised from 25% to 32%, most of these being families where both parents are present. In the other hand, families with only one female provider remained almost the same (85% of the monoparental nuclear and extended families). Nowadays, the single female-headed households are moving away from being a synonym of poverty thanks to the counselling and courses offered by the different institutions named above; jobs give women the chance to provide their families a better quality of life. And in biparental female-headed families, the raise of laboral opportunities for female heads of the house assure their autonomy and step us closer to a gender-equal society.
One important example of the utility and effectiveness of this kind of organisations is Irene Figueroa’s: a micro entrepreneur from Chilean city, Coquimbo, which started making jam at home over 20 years ago. She nominated herself and won the contest “Puro Chile” given by SERCOTEC. As result, she could start a process of marketing and commercialisation in New York. SERCOTEC also offered her the validation reports and a respective line, advice on exportation of products, release and commercial activation, promotion, and the use of an online platform, among many other benefits. The purpose of the SERCOTEC contest was giving insertion and promotion to microentrepreneurs of gourmet food manufactures so they could join the best markets. This way, all the small entrepreneurs would have new opportunities.
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Apart from the product variety in the market that small and medium-sized enterprises provide for consumers, the most valuable result of them is making people’s life better. After a life of hard work, many women have the chance to not only work to feed and raise their children, but also to give others the opportunity to work, and enjoy themselves and the fruits of their work.
By Dayna Albiña
Carolina Foz
Antonia Soto
Group 2
Without a doubt, PyMEs are very valuable to our economy. They don't only help those who don't have the possibility of working in other places because of their education and/or age, but they also are very important for our economy system. By creating a PyME, someone has the possibility of getting out of poverty. At the same time, they can hire people thus increasing employment, and also, thanks to all this, money continues to circulate and doesn't get stuck.
ReplyDeleteAll good things.
I think PyMEs are a good initiative to help people, plus this give people the freedom to work on what they want, and also help to integrate people of different ages and social strata. Maybe with more activities like this the poverty in the country will be reduce. I found fantastic that since these kind of projects people can start a business abroad and be successful.
ReplyDeleteThe development and importance have been given to PYMES in recent years is excellent, because in that way they have the possibility to sustain themselves. The value of this goes beyond economics, because those who develop their microenterprises can work on what they like, besides becoming independent.
ReplyDeleteInteresting article!
ReplyDeleteIndeed, PyMes are very important to Chile's economy, but -just as you said- I think that the most important thing is that Pymes can makes people’s life better, people who need it can work and provide their families a better quality of life. PyMes gives a new opportunity for those in need.
This article was very interesting to me, i know a lot of people who is starting little enterprises and don´t know the importance that their work has on our economy.
ReplyDeletePyMEs are very important for the country and most people know it. PyMEs help a lot of people getting out of poverty; they give opportunities to those who struggle for money, and as a consequence, they can change lifes. But there is a problem; not everyone knows about them. We know what a PyME is, but how does it work? How can you have access to the benefits?
ReplyDeleteThe first time I saw an ad of “Fondo Esperanza” was in the subway, and to be honest I had no idea what was that. PyMes are in fact a very good idea, but they lack the massive attention that they deserve.