Digitalization of MSMEs will increase exports

President of Procompetencia RD assures digitalization of MSMEs will increase exports.

María Elena Vásquez, who explained that MSMEs are important generators of jobs and their development is essential for the economic sustainability of countries.

It is necessary to attack the lag in the export capacity of Micro, Small and Medium Enterprises (MSMEs) to promote a greater environment of competition and innovation in the region, by taking advantage of digital platforms and e-commerce as a basis.

This was stated by the president of the Board of Directors of the National Commission for the Defense of Competition of the Dominican Republic (ProcompetenciaRD), María Elena Vásquez, who explained that MSMEs are important generators of jobs and their development is essential for the economic sustainability of countries.

She specified that in the Dominican Republic there are 1.5 million of these companies (51% led by women), which represent 54% of the labor market and 39% of the GDP.

Participating in the conference “Digital platforms, e-commerce and MSMEs “Vázquez, argues that competition authorities must defend and accompany them.

He understands that these companies in the Regional Gross Domestic Product only reaches 25%, contrary to other regions, such as Europe, where the average is 56%.

He considers, however, that this panorama can change with the current Internet facilities and with governmental incentive policies aimed at accelerating the digitization processes.

“These data should call our attention, and ask us: how can we make our MSMEs more efficient, solid and innovative companies”, he reflects.

But she warns that “this marketing of goods and services through digital platforms, should not only be aimed at seeking commercial positioning abroad, but should be encouraged to promote a genuine culture of e-commerce in the national population”.

According to the president of the decentralized institution of the Dominican State, this culture should include the owners of MSMEs that place their products on a digital platform and local consumers who can purchase goods and services on such platforms.

He said that these organizations should not be left out of the great boom registered by e-commerce at the global and regional level to the point of becoming one of the largest trading spaces.

According to data from the United Nations Conference on Trade and Development (Unctad), in 2021 this type of business produced US$26.7 billion compared to US$16 billion in 2013, while cross-border trade increased, refers the head of ProcompetenciaRD.Procompetencia

She recalled that between 2011 and 2015, the intra-regional parcel delivery market in Latin America grew by 25 percent, which generated great profit and strengthened trade relations between the countries of the region, especially those of the Pacific Alliance (Chile, Colombia, Mexico and Peru).

The official said that, according to a study by the University of Maastricht on the digital maturity of MSMEs, the region will have 12.9 million such companies by 2021. Of this total, she said, 92% are micro, 6.3% are small and 1.6% are medium-sized, representing 60% of formal employment in Latin America.

In his presentation, he highlighted formalization initiatives such as the efforts made by the Digital Economy Division of the Directorate of Services and Support for MSMEs of the Ministry of Industry, Trade and MSMEs, to strengthen competitiveness, digital transformation and integration into e-commerce, among others.

Learn More: ECONOMY

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