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Do small and micro enterprises achieve the required economic development?

2022-03-30T13:35:39.545Z


Damascus, SANA- Small and micro productive projects are receiving increasing attention from government agencies in the world


Damascus-SANA

Small and micro productive projects are receiving increasing attention from government agencies in all fields, through the steps that support them, represented in the Microfinance Banks Law, which paves the way for developing projects, increasing the pace of local production, providing more job opportunities, reducing imports, and promoting economic growth rates.

Louay Shekou, Executive Director of Dummar Crafts Central Incubator, explained to SANA that the incubator helps craftsmen to overcome many difficulties in establishing their small and micro projects because it has a commercial, industrial and tourism registry and a unified administrative license that is exempted from import fees for raw materials in accordance with Decree 68 which allowed the General Union of Craftsmen to import and export Raw materials and equipment needed by craftsmen to reduce production costs.

A number of academics emphasized that Law No. 8 created a new and developed legal environment capable of protecting the funds and rights of investors and exempting the banks that will be created from profit and income tax and fees for five consecutive years. And they added, people who have ideas about small projects, but they do not have the financial resources, can start their own business under the new law.

As for the project financing process, the Marketing Director of the National Bank for Microfinance Sariya Al-Homsi said, “The bank offers a variety of micro and medium loans, the main objective of which is to support small projects and develop them to become a nucleus for large projects in the future. 30 million pounds in personal or sample guarantees and with small interests.”

Shakko added, “The incubator belongs to the Union of Craftsmen and was opened on 8-12-2022 and includes a special section for the program of substitution for imports, through 47 craftsmen and experts from associations and unions of Damascus and the countryside of Damascus, in addition to some new crafts and industries, indicating that the incubator is considered a product of scientific research that has been worked on. It includes the Kar Sheikhs to educate and refine the talents of Syrian men and women. It also contains a craft research center to develop crafts, a commercial center for marketing products outside Syria, in addition to importing raw materials, a section for rural women, an exhibition hall, a seminar hall, a festive plaza, an academy for craft arts, and practical workshops for craftsmen.

For his part, Dr. Majid Al-Raqbi, Chairman of the Board of Trustees of Al-Majed Foundation for Development, indicated that the Foundation works through a set of programs aimed at developing and building the Syrian human being, including the Balghar project to rehabilitate the agricultural homes and the vocational training project in addition to the Sawaed program, which aims to finance after training in cooperation with a group of Strategic partners, pointing out that the focus is on supporting micro-enterprises through launching training courses in partnership with the General Union of Craftsmen, covering all professions, crafts and handicrafts, in addition to working towards opening export horizons for owners of crafts and handicrafts and securing financing for these small projects.

Some project owners and craftsmen talked about the difficulties encountered in the work and about proposals aimed at developing it, including the craftsman Ziad Al-Shayeb, Muhammad Al-Kajk, Adnan Tanbekji, and Rasha Al-English, especially the difficulty of importing some raw materials as a result of coercive measures and conditions of war and economic siege, in addition to the existence of marketing difficulties due to the high costs of shipping both internally and externally. By supporting the marketing process, securing and facilitating financing services and loans, reducing their interests, and providing energy carriers such as electricity and fuels, which contributes to reducing and increasing production costs.

The issue of financing these projects received the greatest attention from government agencies, so Law No. 8 of 2021 was issued, which allows the establishment of microfinance banks with the aim of securing the necessary funding for projects of small producers, small business owners, and those with limited and no income by granting them operating loans in order to secure additional income for this segment and create opportunities work and achieve sustainable development.

A number of academics emphasized that Law No. 8 created a new and developed legal environment capable of protecting the funds and rights of investors and exempting the banks that will be created from profit and income tax and fees for five consecutive years. They added, "People who have ideas about small projects, but do not have the financial resources, can start their own business under the new law."

Regarding the project financing process, the Marketing Director of the National Bank for Microfinance Sariya Al-Homsi said, “The bank offers a variety of micro and medium loans, the main objective of which is to support small projects and develop them to become a nucleus for large projects in the future. 30 million pounds in personal or sample guarantees and with small interests.”

Ali Aswad, Operations Manager of BEMO Saudi Fransi Bank for Microfinance, indicated that the bank joined the microfinance sector, which is based on an integrated banking financial system that provides awareness of microfinance, products and services of all kinds, links to vocational training, and provides loans to all microfinance segments for producers and owners of foundational project ideas that need funding and projects. The list that needs support, noting that the value of the loans ranges between 100 thousand and 30 million pounds, with personal and sample guarantees.

For his part, President of the General Union of Craftsmen, Naji Al-Hadawa, stressed that including the construction of craft exchanges in the program for financing small and medium enterprises will have significant positive effects on the economy and constitute an important factor in enabling craftsmen to rebuild their craft facilities that have been sabotaged by terrorism and to employ more manpower.

Al-Hadwa pointed out that the small and medium-sized enterprises currently supported within the program are the production of requirements and equipment for renewable energy components, dairy factories, cheese and milk derivatives, projects for the manufacture of threads, automated weaving, fabrics and dyestuffs, factories of the manufacture of threads and knitted fabrics, the establishment, operation and restoration of facilities for the automatic textile, knitting, carpets, rugs, electrical and electronic industries, and the manufacture of hardware Lighting, construction, operation and restoration of facilities for the manufacture of medical instruments and devices, and projects for the wood and aluminum industries, the Formica industries, the poultry house and the slaughterhouses.

Alia Hishma and Amjad Sabbagh

Follow Sana's news on Telegram https://t.me/SyrianArabNewsAgency

Source: sena

All news articles on 2022-03-30

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