Fondomicro supports project of Classification of the Mipymes
The Confederation of Small and Medium Companies reject it
SANTO DOMINGO. The legislative proposal for the Classification of Companies which is currently in the National Congress, which is rejected by the Dominican Confederation of the Small and Medium Companies (Codopyme) because they consider it to be prejudicial to that sector, is supported by the Fund for the Financing of the Micro-companies (Fondomicro), which estimates that it is adequate for the country.
"While it is true that the number of workers used in other countries for the classification is the same which is used in this rough draft, the sales levels vary with each country, according to empirical studies," she indicates.
The Fondomicro executive explains that the new proposal establishes compliance with two criteria for the classification and specifies that if one of them is surpassed, the company will be classified in the next highest category.
"This is to say, that if the company sells, for example, 100 million pesos a year, but has 175 workers, it would be classified as a large company because of the number of workers, although it has sales of 100 million pesos a year," she notes.
In addition, Ortiz indicates that the surveys by Fondomicro, and in particular that of 2013, document that in the country there are approximately 18,337 Pymes who employ 522,231 workers and by separating the small from the medium, it was found that of the total of 522,231, 85.9% are small companies, measured by the number of workers, while 14.1% are medium companies, under the same criteria.
The considerations by Fondomicro come about after the president of Codopyme expressed his rejection of the legislative proposal for classification of businesses which is currently in the Congress because he feels that this law would permit large companies to obtain the benefits of the small ones.
"More Pymes go on to be big ones"
According to Fondomicro, before Law 488 - 08, of the 15,750 small companies as classified by the number of workers, 29.3% became to be considered "medium" because of the level of sales. Equally, of the 2587 medium companies because of the number of workers, 11.8% now become considered "large," because they exceed the yearly level of sales in order to classify as medium. And with the new legislative project, of the 15,750 small companies as established by the number of workers, 12.7% would go on to be considered "medium" because of their sales level. Equally of the 2587 medium companies ranked as such because of the number of workers, 6.1% would go on to be considered "large" because they exceed the annual sales level for classification as medium.
"While it is true that the number of workers used in other countries for the classification is the same which is used in this rough draft, the sales levels vary with each country, according to empirical studies," she indicates.
The Fondomicro executive explains that the new proposal establishes compliance with two criteria for the classification and specifies that if one of them is surpassed, the company will be classified in the next highest category.
"This is to say, that if the company sells, for example, 100 million pesos a year, but has 175 workers, it would be classified as a large company because of the number of workers, although it has sales of 100 million pesos a year," she notes.
In addition, Ortiz indicates that the surveys by Fondomicro, and in particular that of 2013, document that in the country there are approximately 18,337 Pymes who employ 522,231 workers and by separating the small from the medium, it was found that of the total of 522,231, 85.9% are small companies, measured by the number of workers, while 14.1% are medium companies, under the same criteria.
The considerations by Fondomicro come about after the president of Codopyme expressed his rejection of the legislative proposal for classification of businesses which is currently in the Congress because he feels that this law would permit large companies to obtain the benefits of the small ones.
"More Pymes go on to be big ones"
According to Fondomicro, before Law 488 - 08, of the 15,750 small companies as classified by the number of workers, 29.3% became to be considered "medium" because of the level of sales. Equally, of the 2587 medium companies because of the number of workers, 11.8% now become considered "large," because they exceed the yearly level of sales in order to classify as medium. And with the new legislative project, of the 15,750 small companies as established by the number of workers, 12.7% would go on to be considered "medium" because of their sales level. Equally of the 2587 medium companies ranked as such because of the number of workers, 6.1% would go on to be considered "large" because they exceed the annual sales level for classification as medium.