Three reasons that forced closure of 14,000 Mypes

El Diario reports:

According to cruceño producers

Three reasons that forced closure of 14,000 Mypes

Screen Shot 2016-01-05 at 9.21.58 AMThe president of the Federation of Micro and Small Businesses (Fedemype) Santa Cruz, Javier Challapa, reported that at least 14,000 production units were closed in 2015 because of smuggling, lack of government support and the payment of the second Christmas bonus.

Unfortunately FUNDEMPRESA, who is responsible for the commercial register in Bolivia, does not offer disaggregated information from companies that close operations and highlights only those registered, so it is not possible to verify the accuracy of the figures published.


“You can clearly see the closure of 7,000 companies formally constituted in a year, and on the informal sector, there are another seven thousand production units that were closed, and every entrepreneur has from two to three operators, they are carpenters and seamstresses who have been working,” said the leader.


Challapa said the lack of technology and adequate conditions puts the sector at a disadvantage against neighboring countries like Brazil and Argentina with the devaluation of their currencies against the dollar have caused a “great damage” to their small economies.

“These countries have great technology and capacity to produce raw materials, so they can bring down costs so much and we can not be competitive in price and quality,” he said.


He argued that small businesses hired up to 10 workers, they had to reduce staff by up to 50% in order to survive. He said that if they keep their businesses open, despite their precarious situation, is because “that’s all they do.”

“Many companies that had 10 people now only have three to five people, but do not close because they do not know anything, because if they had a profession, they would close their business and migrate to their profession, but unfortunately many do not have it,” he said .


The leader stressed that in this critical situation of small and micro enterprises, payment of the double Christmas bonus “was the trigger for many to close their doors.”

What is reported here, is just one of the outcomes of populism, the ochlocracy knows nothing better and certainly they have become rich to the expense of our country.

Published by Bolivian Thoughts

Senior managerial experience on sustainable development projects.

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