PCM (MSMEs Competitiveness Program)

Back to Atlas

What are the main aims and objectives?

This program is part of the National Development Plan Paraguay 2030, with the main lines of action of Poverty Reduction and Social Development, and Inclusive Economic Growth.

The Vice-Ministry of MSMEs, through the PCM, seeks to make micro, small and medium-sized enterprises more competitive, generate new jobs, develop innovative products, improve their productivity and have a better opportunity to access markets. It also aims at joint and coordinated work between the private sector and public sector agencies that support MSME development processes.

How does the program work?

The purpose of the MSMEs Competitiveness Program "Programa de Competitividad de las MIPYMES" (PCM by its Spanish acronym) is to contribute to the sustainable competitive development of Micro, Small and Medium Enterprises as a factor to improve the living conditions of the people involved. 

The main objective of PCM is to improve the competitiveness of micro, small and medium-sized enterprises with emphasis on strengthening the industrial sector.

Expected results and program indicators:

  • Business Plan validated.
  • Increased physical/technological installed capacity.
  • Increased production
  • Incorporation of technology  
  • Incorporation of innovation in the business model. 
  • Legal, commercial, tax, environmental, health or labor formalization, depending on the activity developed. 
  • Integration with actors in the production chain
  • Access to new markets.
  • Increased saleS.
  • Increased employment. 
Eligibility
To apply for the program must meet the following requirements:
  • A minimum of 3 years of seniority. 
  • Property in the name of the individual or legal entity, excluding in the case of infrastructure investment requests; and, rented for a period of at least 2 years, in the case of requests for investment in equipment, machinery and others.
  • Not to have a judicial or police record.
  • Develop an industrial activity.
  • Have a proposing institution/entity, defining the function (counterpart) that it will fulfill in the process of sustainability of the project's implementation.
  • Comply with the profile and requirements of the call for applications.
  • Have a MSME´s ID card.
Timeline

October 2014: First PCM regulation and start of the program.

2015: First batch of program beneficiaries.

2018: First 100 industrial MSMEs supported with funds reached.

August 6, 2019: Modification and adaptation of the PCM regulations.
 

Monitoring + Evaluation Methods

The Vice-Ministry of MSMEs, through its offices, will implement the sustainability plan presented in order to generate knowledge and tools aimed at increasing physical and business management capabilities through training and technical assistance, in addition to providing advice for formalization (legal, commercial, tax, environmental, health and labor, depending on the activity) aimed at strengthening the competitive capacity of MSMEs.

The period of accompaniment by the Vice-Ministry of MSMEs will last until the final delivery of the goods to the MSMEs, which is expected to take two years.

The sustainability strategy will be implemented through coordinated actions with key public and private sector stakeholders, including alliances with supply chains, linkages with universities, financial institutions, among others at the local, departmental and national levels. 
 

What impact has been measured?

Industrial MSMEs that received PCM funds:

  • 2014: 22
  • 2015: 50
  • 2016: 0
  • 2017: 21
  • 2018: 10
  • 2019: 13
  • 2020: 18
  • 2021: 13
  • 2022: 21

In the period 2018 - 2021 there are 75 beneficiary companies with an average amount of Gs. 50,000,000 in non-refundable capital goods.

What lessons can be learned?
More budget is needed to reach more beneficiaries.

CURATED BY

Juan Paredes Romero

National Director of Entrepreneurship
Ministry of Industry and Commerce of Paraguay
Paraguay