SEMINARIO DE FINANCIAMIENTO PARA LA PEQUENA Y MEDIANA EMPRESA Promoción y Financiamiento del Desarrollo Empresarial de la PYME. SEBRAE - BRASIL
BRAZIL - GEO ECONOMIC FIGURES Area : 8.500.000 km2 Area : 8.500.000 km2 Population : 166 million Population : 166 million GDP : US$ 700 billion GDP : US$ 700 billion GDP per capita : US$ 4.200 GDP per capita : US$ 4.200 Labor Force: 125 millon Labor Force: 125 millon
BRAZIL- COUNTRY OF CONTRASTS high technology sectors, competitive worldwidehigh technology sectors, competitive worldwide good infra-estructure: transports, energy and communications.good infra-estructure: transports, energy and communications. natural resources and rich biodiversity natural resources and rich biodiversity regional and social inequalities:more than 54 million living with less than a US$ per day regional and social inequalities:more than 54 million living with less than a US$ per day large areas with low level of human development- 74th position in the world ranking ( IDH 0,747) large areas with low level of human development- 74th position in the world ranking ( IDH 0,747)
THE IMPORTANCE OF THE SMALL BUSINESS IN BRAZIL uEnterprises (4,5 million - formal sector) 98,5% 9,5 million from the informal sector u Employment 65,0% u Wages 42,0% u National Product 54,0% u Exporting Share2%
WHAT IS SEBRAE? Government organization to support the development of small bussiness in Brazil. Present in all 27 states of Brazil, in Buenos Aires and Paris 416 offices for customer services US$ 500 million annual budget. Source from the social contributions. Alliances with many government and private institutions, and also with the third sector (NGO)
THE MACRO STRATEGIES OF SEBRAE FOR THE SMALL BUSINESS.To provide favorable environment for the establishment and development of SME To support processes based on local and integrated development arrangements (productives chains, clusters, etc). To make available products and services to a larger customer base.
SISTEMA SEBRAE RESULTS 2000 SUPPORTED ENTERPRISES 1,5 million COURSES 16 thousand TRAINED PEOPLE 490 thousand FAIRS AND EVENTS356 MUNICIPALITIES/DISTRICTS445 CONSULTS 3,3 million
SISTEMA SEBRAE MAJOR UNITS FINANCING AND CAPITALIZATION UNIT. Credit Guarantee - Fundo de Aval - FAMPE. Microfinancing. Venture Capital. Funding/Project analysis. “Brasil Empreendedor” uENTERPRENURIAL DEVELOPMENT uCOMERCIALIZATION uPUBLIC POLICIES uAGROBUSINESS uEXPORT AGENCY uINFORMATION uTECHNOLOGY uSUSTAINABLE LOCAL DEVELOPMENT PROGRAMS
FAMPE- FUNDO DE AVAL MAIN DIFFICULTIES OF SME TO ACCESS CREDIT ( National Survey) 40% High demand for guarantees 40% High interest rates28% Excessive bureaucracy14% Absence of resources13% Others 5% ________________________________________________ TOTAL 100%
FAMPE - FUNDO DE AVAL FAMPE - FUNDO DE AVAL uConstitution date: 22/06/95 uStart up Resources:1995 US$ 37 MM New Resources: 1999 US$ 8,5 MM 2000 US$ 16 MM uSource: Sebrae budget. uFirst contract: July/95 with Banco do Brasil.
General –To provide a financial tool for the brazilian small business to access the credit market.Especific –To build a credit guarantee fund for the small business in Brazil, aiming to provide complementary guarantees for loans, acting as a second floor institution. FAMPE -FUNDO DE AVAL OBJECTIVES
FAMPE-FUNDO DE AVAL FAMPE-FUNDO DE AVAL QUANTITATIVE RESULTS - APR/2001
POLICIES TO SUPPORT MICROFINACING PROGRAMS GENERAL PURPOSE: TO STRENGHT MICROFINANCING INDUSTRY IN THE COUNTRY, AIMING TO INCREASE CREDIT SUPLLY AND EASINING SMALL BUSINESS ACCESS.
POLICIES TO SUPPORT MICROFINACING PROGRAMS MAIN DIFFICULTIES TO DEVELOP THE MICROFINANCING INDUSTRY: Non organized communities and absence of leadership with knowledge of microfinancing. Lack of resources, specially for the infant instituitons Low quality of professionals and labor supply in general. High operational costs under small portfolio size.
VENTURE CAPITAL PROGRAM OBJECTIVES: TO DEVELOP SMALL BUSINESS. TO DEVELOP VENTURE CAPITAL MARKET IN BRASIL TO PROVIDE RETURN TO INVESTORS.
VENTURE CAPITAL PROGRAM SOME POSSIBLE FORMS AND PRIORITIES OF SEBRAE ACTING: INVESTMENTS IN MUTUAL FUNDS FOR EMERGENT ENTERPRISES - FMIEE TECHNOLOGY AND EXPORT BASED ENTERPRISES. IN PARTNERSHIP WITH LOCAL AND INTERNATIONAL INVESTORS PARTICIPATING IN THE INVESTMENT COMITEE OF THE FUNDS PROVIDING CONSULTING SERVICES AND SUPPORTING MANAGEMENT
VENTURE CAPITAL PROGRAM SOME PARTNERSHIPS ALREADY CONCLUDED: in US$ MM FUNDSEBRAEPARTNERS TOTAL Brasil Venture 6,8 6,8 13,6 Fundotec 2,5 5,7 8,2 SCTec 1,4 4,1 5,5 TOTAL10,7 16,627,3 PARTNERS: BID/FUMIM, BNDES, PENSION FUNDS AND PRIVATE INVESTORS
FUNDING / PROJECT ANALYSIS SEBRAE ACTS ALSO AS A SECOND FLOOR FINANCIAL INSTITUTION PROVIDING US$ 250 MM FUNDING TO CREDIT INSTITUTIONS. SEBRAE PROVIDES SERVICES FOR PROJECT ANALYSIS AND CREDIT PROPOSALS.
PROGRAMA “BRASIL EMPREENDEDOR” This program is a result of a multi institutional effort to provide credit for “good ideas/beginners” under the concept of “Oriented Credit” Goal of the program: To support technically and to provide credit to 5000 enterpreneurs. US$ 100MM financing.