NewsWhore
05-16-2012, 04:30 PM
Francisco Capellan, president of the Confederation of Small and Medium-sized Companies (Codopyme) says that government regulations discourage small business from entering the formal business sector. He said that around 600,000 micro, small and medium-sized businesses are in operation, of which less than 50,000 are registered with social security.
In an interview, he agreed with comments by Mario Davalos and Marina Ortiz of Fondo Micro about the lack of incentives for formalizing small companies. He said that once a small business becomes a formal company, it will needs to make payments to the Department of Taxes, Social Security Treasury and the National Institute for Professional Training (Infotep), new costs it did not have to undergo when operating informally.
Capellan said that is why few businesses have preferred to stay operating informally, and as a result many workers do not have medical insurance, for one.
"A way for small companies to go formal needs to be found, because there are thousands of shops and workshops that are not," he said. Likewise, he said in farm areas there are many medium-sized businesses that fear going formal due to the high government costs. He said that if the government would offer advantages to small and micro-business owners, many would go formal. He proposed the establishment of a single-stop-shop for this category of business.
Government business regulations have frequently been criticized for being established for large businesses, when in reality most businesses in the Dominican Republic are small.
In an interview with Hoy, Mario Davalos criticized the fact that rather than stimulating small business to go formal, the government does the contrary. He mentioned that the government issues the Senasa medical cards under the subsidized regime for people on a low income, making it unnecessary for companies to go formal in order to provide medical insurance for their workers. Davalos said that the government has not designed public policies that are suitable for small business.
Davalos said that while Law 479-08 on company formation has improved the situation, becoming a formal company is still complicated and costly for micro-businesses.
www.hoy.com.do/economia/2012/5/13/427377/Ven-Estado-no-incentiva-a-las-microempresas-a-formalizarse (http://www.hoy.com.do/economia/2012/5/13/427377/Ven-Estado-no-incentiva-a-las-microempresas-a-formalizarse)
www.hoy.com.do/economia/2012/5/15/427707/Cree-Estado-no-estimula-a-microempresas-a-formalizarse (http://www.hoy.com.do/economia/2012/5/15/427707/Cree-Estado-no-estimula-a-microempresas-a-formalizarse)
More... (http://www.dr1.com/index.html#14)
In an interview, he agreed with comments by Mario Davalos and Marina Ortiz of Fondo Micro about the lack of incentives for formalizing small companies. He said that once a small business becomes a formal company, it will needs to make payments to the Department of Taxes, Social Security Treasury and the National Institute for Professional Training (Infotep), new costs it did not have to undergo when operating informally.
Capellan said that is why few businesses have preferred to stay operating informally, and as a result many workers do not have medical insurance, for one.
"A way for small companies to go formal needs to be found, because there are thousands of shops and workshops that are not," he said. Likewise, he said in farm areas there are many medium-sized businesses that fear going formal due to the high government costs. He said that if the government would offer advantages to small and micro-business owners, many would go formal. He proposed the establishment of a single-stop-shop for this category of business.
Government business regulations have frequently been criticized for being established for large businesses, when in reality most businesses in the Dominican Republic are small.
In an interview with Hoy, Mario Davalos criticized the fact that rather than stimulating small business to go formal, the government does the contrary. He mentioned that the government issues the Senasa medical cards under the subsidized regime for people on a low income, making it unnecessary for companies to go formal in order to provide medical insurance for their workers. Davalos said that the government has not designed public policies that are suitable for small business.
Davalos said that while Law 479-08 on company formation has improved the situation, becoming a formal company is still complicated and costly for micro-businesses.
www.hoy.com.do/economia/2012/5/13/427377/Ven-Estado-no-incentiva-a-las-microempresas-a-formalizarse (http://www.hoy.com.do/economia/2012/5/13/427377/Ven-Estado-no-incentiva-a-las-microempresas-a-formalizarse)
www.hoy.com.do/economia/2012/5/15/427707/Cree-Estado-no-estimula-a-microempresas-a-formalizarse (http://www.hoy.com.do/economia/2012/5/15/427707/Cree-Estado-no-estimula-a-microempresas-a-formalizarse)
More... (http://www.dr1.com/index.html#14)