Background on the Situation in Jalisco
In the context of escalating violence linked to organized crime, the Secretaría de Desarrollo Económico de Jalisco (Sedeco) introduced a financial support and institutional accompaniment strategy to prevent business closures in regions where insecurity posed a direct threat to local economic activity.
Key Details of the Intervention
Sugei Palma, Director of Strategic Projects at Sedeco, highlighted that the primary goal was to prevent business closures in municipalities facing significant security challenges.
The strategy combined direct financial incentives and credits provided through the Promotora del Financiamiento para el Desarrollo de Jalisco (PROJAL) to businesses across all productive sectors in Teocaltiche, Teuchitlán, Villa Hidalgo, and Encarnación de Díaz.
A total of four million pesos was allocated, primarily for purchasing raw materials, covering essential operational expenses, and paying utility bills to ensure business continuity.
Complementary Support Measures
Alongside financial assistance, Sedeco implemented a comprehensive business strengthening strategy. In collaboration with municipal and federal authorities, they set up Service of Administrative Taxation (SAT) modules to streamline tax procedures and encourage formalization.
As a result, over 1,000 procedures were addressed, and more than 10% of individuals who sought assistance formalized their businesses while completing other administrative processes.
Impact and Future Prospects
Sugei Palma emphasized that the initiative aimed to provide a “seed” for long-term sustainability, offering capacity building and training opportunities to ensure businesses could overcome immediate challenges and thrive in the future.
Key Questions and Answers
- What was the main objective of Sedeco’s intervention? The primary goal was to prevent business closures in municipalities affected by violence and insecurity.
- Which municipalities received support? Teocaltiche, Teuchitlán, Villa Hidalgo, and Encarnación de Díaz.
- How much financial support was provided? A total of four million pesos was allocated for direct incentives and credits.
- What additional measures were taken to support businesses? Sedeco implemented a comprehensive business strengthening strategy, including setting up SAT modules for tax procedure streamlining and encouraging formalization.
- How many procedures were addressed, and how many businesses were formalized? Over 1,000 procedures were addressed, and more than 10% of individuals who sought assistance formalized their businesses.
- What was the long-term goal of this initiative? To provide businesses with capacity building and training opportunities for sustainable growth.
