Credit, finance and micro-credit In 2003 Cesvi in collaboration with

Credit, finance and micro-credit In 2003 Cesvi in collaboration with

Credit, finance and micro-credit
In 2003 Cesvi in collaboration with ETIMOS (Ethic Bank Group) and FUCAC (Federación
Uruguaya de Cooperativas de Ahorro y Crédito) developed an initiative called
“Oportunidad Mypes” to support micro and small enterprises in Montevideo through
training programmes, technical and credit assistance.
In terms of business, technical assistance and training promote better management of the
firm and a more permanent placement in the market. From the perspective of donors
instead, they represent a condition that allows greater control of risk.
Central objective of the programme was to improve levels of management and economic
performance of micro and small enterprises in Montevideo, in order to facilitate their
transition from informal to formal sector. In particular, beneficiaries (1.043 micro and small
businessmen operating in 840 micro and small enterprises) were involved in training
sessions about business management, administration and marketing. They were
guaranteed access to investment opportunities and financial and technical assistance.
Moreover ETIMOS and FUCAC financed a guarantee fund aimed at supporting credit
programmes directed to marginal sectors of micro and small enterprise; and they also
developed a revolving fund specifically bound to informal micro entrepreneurs. A total of
488 micro and small businessmen had access to credit, among them 36% were business
women and 22% were entrepreneurs opening a new business activity.
The programme “Oportunidad Mypes”, directed in cooperation with an Advisory Council,
promoted also various meeting and a seminar, involving microfinance institutions of the
country, making possible the constitution of the first “Mesa Nacional de Microfinanzas”, a
form of institutional coordination of system operators.
The Advisory Council was constituted by:
• fifteen sector institutions
ANMYPE – Asociación Nacional de Micro y Pequeña Impresa
FCPU – Federación de Cooperativas del Producción del Uruguay
CTMA - Centro de Talleres Mecánicos de Automóviles
AFBA – Asociación de Ferreteros Bazaristas y Anexos
Asociación Nacional de Carniceros
Cámara de Comercio Italiana del Uruguay
Centro de Propietarios de Remises del Uruguay
Asociación de Feriantes del Uruguay
Centro Comercial Industrial y Agrario Las Piedras
Centro Comercial e Industrial de Atlantica
Camara de Comercio Ind. e Agr. PANDO
AKYSAQU – Asociación de Kioscos, Salones y sub agentes Quinielas
FILEF – Federazione Italiana di Lavoratori Emigranti e Famiglie
Comercio Justo Uruguay
Asosiacion Uruguaya de Artesanos.
• Two local NGO’s
CNM – Centro de Negocios de la Mujer
IPRU – Instituto de Promoción Económico Social del Uruguay.
• Six cooperatives of financial mediation
FOGAR – Fondo de Garantías Recíprocas
Cooperativa CINTEPA - Departamento Colonia
Cooperativa COMAC - Departamento Treinta y tres
Cooperativa CAYCPA - Departamento Florida
Cooperativa COOPACE - Departamento Rio Negro.
CONFIAR - Montevideo
• Two department of public structure
Unidad Pymes de la Intendencia Municipal de Montevideo
Dinapyme – Direccion Nacional Pequena y Mediana Empresa del Ministerio de Industria,
Energia y Mineria.
Cesvi’s programme gave a significant contribution in strengthening the role of micro and
small businesses in Uruguay’s economy, as affirmed by Uruguayan Minister for Budget
and Planning during the seminar for the presentation of the Assessment Study on
Programme Impact. A relevant observation desumed by project implementation is that
credit component is essential in this kind of programme but not sufficient. It must be
accompanied by training and technical assistance, which reduces the financial risk and
increases the entrepreneurial skills of beneficiaries. Credit without this support could
transform itself from help to a heavy load.