Ministry of Trade, Industry, and Tourism Republic of Colombia

Business Development Services for Micro, Small, and Medium Enterprises in Colombia

Direction of Micro, Small, Medium Enterprise Viceministry of Business Development Bogot, Sep 24 / 2012

Colombian Law classifies businesses as follows:

M
Micro

S
Small

M
Medium

L
Large

< 10 employees < 500 MMLW

< 50 employees < 5000 MMLW

< 200 employees < 30,000 MMLW

>200 employees
> 30000 MMLW

Businesses in Colombia

MSME

Vs

LARGE

96% of Establishments 81% of Employment 40% of GDP

0.1% of Establishments 19% of Employment 60% of GDP

Businesses in Colombia

MSME

Vs

LARGE

621.447 MSMEs
Fuente: Registro nico Empresarial Julio 2012

8.858 Large Enterprises

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

The strong presence of MSMEs in the Colombian economy calls for the development of differentiated tools.

Who we are
Sector Trade, Industry, and Tourism

Ministry of Trade, Industry, and Tourism

Vice Ministry of Foreign Trade

Vice Ministry of Business Development

Vice Ministry of Tourism

Affiliated and Linked Entities

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

Our MSME development programs include: 1. Instruments for creation and strengthening (nonfinancial). 2. Instruments of Financial Support.

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

1. Instruments for creation and strengthening (nonfinancial).

Nonfinancial Support

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

Establishes relations with all nonfinancial business development services for the creation and strengthening of MSMEs
Search for capacity development within the company: Managerial and Administrative aspects Accounting and Financial Management Market Access Innovation within the company (among other things)

Nonfinancial Support

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

Nonfinancial Support

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

Micro & Small Enterprises (as vendors)

Medium & Large Enterprises (as buyers)

Boosting sales domestic market:

within

the

Business Matchmaking Events Trade Missions Market Research

Nonfinancial Support

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

National Entrepreneurship Policy, More companies in the country

a systemic approach that seeks to foster and strengthen an integrated ecosystem through the Regional Networks of Entrepreneurship and the joint support of all institutions in the country.

entrepreneurship
Vision of the Ecosystem
This administration aims to create an ecosystem for entrepreneurship that is tailored to the region and type of enterprise.

13

Nonfinancial Support

Ministerio de Comercio, Industria y Turismo

formalizacin
Repblica de Colombia

Helping informal operations to become formal businesses.

The program includes:

1. 2. 3. 4. 5. 6.
15

Raising awareness of the Formalization and Job Creation Law Norms for Formalization Brigades for Formalization Formalization Service Networks Sector projects Micros Routes for Formalization

Nonfinancial Support

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

Fund for the innovation and competitiveness of MSMEs.

The Fund is aimed at co-financing ("Grants") programs, projects, and activities for innovation, development, and promotion of MSMEs.

Open Invitations

Nonfinancial Support

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

Connecting MSMEs to public procurement

This promotes the States acquisition of goods and services from Micro, Small, and Medium Enterprises.

The regulatory framework has advantages for MSMEs.

Advantages for MSMEs

Decree 734 of 2012

Open calls exclusively for Micro and Small Enterprises, as well as MSMEs

Micro and Small < 75,000 USD (141334.500) MSMEs <125.000 USD (235558.000)

Preferential Conditions
Goods and services produced by MSMEs

Advantageous Factors
Preferences for domestic MSMEs
Gua de contratacin pblica para micro, pequeas y medianas empresas - Mipymes

The TRM for these purposes in 2012 is $ 1,884.46

Nonfinancial Support

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

Promotes the use of industrial design as a competitive tool for MSMEs

Knowledge Transfer in design.
Design and Innovation Workshops for Business Competitiveness (2011 17 workshops / 2012 25 workshops) Manual of Design and Innovation in the development of MSMEs (link)

Viewing and promoting success stories in design

Documentary Series Design Case Studies in Colombian MSMEs. Success through design Sample Design in Colombia (link)

Nonfinancial Support

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

National Prize innovation

for

MSME

This aims to recognize and encourage talent, applied research, and business attitudes that have positive impacts on competitiveness.

Nonfinancial Support

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

By 2014, we will have 14 treaties in force with more than 50 countries, which provide preferential access to 1.5 billion consumers Proexport carries out activities to make best use of MSMEs:

Market Analysis Seminar Advice on Exporting

Trade Missions
Business Matchmaking events (among others)

For MSMEs, we have Export Route.

http://www.colombiatrade.com.co/ruta-exportadora

Support Industry

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

The Intellectual Property Classroom Superintendent of Industry and Commerce Created with the aim of fostering a culture of safety and protection of industrial property in Colombia through the registration of trademarks, patents and utility models. There have been developed at national level workshops, public lectures, meetings, fairs and regular courses in industrial property issues, with the participation of over 1,000 people, including businesspersons, students, and researchers.

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

Our MSME development programs include: 1. Instruments for creation and strengthening (nonfinancial). 2. Instruments of Financial Support.

25

Financial Support Instruments

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

Refers to financial services for the creation and strengthening of MSMEs.

Financial Services
Credit Lines Credit Guarantees Capital Funds

Angel Investor Networks

Start-up Fund

Seed Capital

Financial Support Instruments

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

Facilitating access to credit is one of the main tools provided by the Ministry of Commerce, Industry and Tourism through its member institutions. Best rates, terms and payment (grace periods) Bancoldex credit lines Guarantees on FNG Lines

Financial Support Instruments

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

Discounts During 2012, Bancoldex disbursed COL $1.6 billion in loans (USD 865 million), reaching 486 of the countrys 1102 municipalities. About 58% of the funds were granted in loans to MSMEs and over 34% of the funds were used to modernize enterprises.

Financial Support Instruments

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

So far in 2012, the National Guarantee Fund (NGF) has benefited 296,057 users, contributing to business development in Colombia. In 2012, the goal for secured loans to support MSMEs nationwide is COL 8.4 billion (USD 4.589 million).

Financial Support Instruments

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

A Seed Capital Fund to support business initiatives from entrepreneurs who meet the profile of beneficiaries.

Entrepreneurs must submit a business plan that is feasible through an Entrepreneurship Unit (419 Entrepreneurship Units throughout the country). Upon approval of the project, the new company receives grants for the development of the approved project. The fund will allocate resources for USD 40 million in 2012. Since the Fund's inception (2005) to date, 2691 companies have been funded by COL 160 billion (USD 87 million)

Financial Support Instruments

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

It is a program that promotes the creation of Innovative and Dynamic Entrepreneurship with seed capital grants.

Dynamic Entrepreneurship is one that grows profitably, quickly, and steadily, where one is able to reinvest and to achieve a fairly significant level of sales in one decade.

Capital contributions from COL 50 million to COL 350 million (USD 27,000 to USD 189,000)

Financial Support Instruments

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

Program that promotes the networking of angel investors that invest in startups.

There are 7 networks in operation and 3 in structuring The program supports:

Sponsorship for the formation of new networks.

Educates investors on how to facilitate interactions with entrepreneurs during the selection and negotiation for investment. Creating incentives for investment in dynamic enterprises.

Financial Support Instruments

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

Venture Capital Funds

Venture Capital funds are vehicles that invest in startups that have growth potential and require not only resources, but also management. Currently, there are five venture capital funds operating in Colombia and 6 in structuring.

Financial Support Instruments

Ministerio de Comercio, Industria y Turismo

Repblica de Colombia

Private Equity Funds

Private equity funds are vehicles that allow the movement of capital to companies in the advanced stage of development, which seek to strengthen the company with a larger market potential. Currently in Colombia, there are 24 private equity funds in operation. In Colombia, Industry Capital Funds mobilize over USD 2.6 billion.

Ministry of Trade, Industry, and Tourism Republic of Colombia

Thank You
Contact: Camilo Montes cmontes@mincomercio.gov.co Director Office for Micro, Small, Medium Business Viceministry of Business Development Bogot, Sep 24 / 2012