Proposal to extend the PHASE and financing to SMEs in Dominican Republic

Extending the Employee Solidarity Assistance Fund (FASE) program, expanding the range of options and access to financing, as well as reviewing and updating the current legislation related to the Labor Code and Bankruptcy Law are part of the initiatives that must be implemented in the country to support small and medium-sized enterprises (SMEs).

The statement was made by the Vice Minister of Development for SMEs of the Ministry of Industry and Commerce and MSMEs, Ignacio Méndez, who spoke at the event “SMEs: successful transit to a new normal,” organized by the American Chamber of Commerce of the Dominican Republic ( AmchamDR ).

The official also stressed the importance of removing obstacles and promoting the transition from informality to formality, so that SMEs that are not regulated can be inserted into the national productive apparatus.

In this sense, he highlighted the need to provide close support so that these businesses can adopt and use new technologies to enhance their commercial management.

Digital transformation

Méndez said that the COVID-19 pandemic accelerated the transformation process so that small and medium-sized companies embrace the digital culture and break technological gaps.

He also outlined that small and medium-sized companies have a high dependence on cash flow, low use of technology in their businesses, and disruption in the supply chain, but they will have flexibility, resilience, and new business opportunities if they open up to the digital economy.