César Bonilla Yunes Calls for Increased Support from Municipal and State Governments
The Consejo de Organismos Empresariales (COE), led by César Bonilla Yunes, has urged local authorities in Puebla to provide more microloans for small and medium-sized enterprises (Mipymes) to foster their growth. Bonilla Yunes, the COE president, highlighted that in previous years, at the start of each administration, there were calls for microfinancing opportunities ranging from 20,000 to 50,000 pesos. However, this year, such low-interest credit announcements have not been made.
COE’s Composition and Objectives
The COE comprises around 2,500 businesses, including restaurants, consulting firms, travel agencies, construction companies, accounting services, and retailers. These diverse enterprises aim to receive tailored financial support, as each business has unique capitalization needs.
Why Banks Aren’t the Ideal Solution
Bonilla Yunes emphasized that seeking credit from commercial banks is not a viable option due to high-interest rates. He noted that approximately three out of ten businesses require some form of loan but avoid them to prevent further indebtedness.
Current Financing Situation
Although local authorities have shown willingness to support businesses, the available financing is insufficient. For instance, a 20,000-peso loan barely covers rent, leaving little room for purchasing necessary products or services.
Individualized Assessments Needed
Bonilla Yunes acknowledged that businesses have varying capitalization requirements. Some invest more in improving their services, making them eligible for bank loans. Therefore, each case should be evaluated separately to ensure appropriate financial assistance.
Call for Increased Public Financing
The COE president advocated for a 30% increase in public financing. This modest boost would demonstrate government commitment to supporting Mipymes, which are crucial for job creation in Puebla.
Key Questions and Answers
- What is the COE? The Consejo de Organismos Empresariales (COE) is an organization comprising approximately 2,500 businesses in Puebla, including restaurants, consulting firms, travel agencies, construction companies, accounting services, and retailers.
- Why are microloans essential for Mipymes? Microloans help small businesses capitalize and grow, providing them with the necessary funds to cover expenses like rent and product purchases.
- Why aren’t banks the preferred source of financing? Commercial banks charge high-interest rates, making it difficult for small businesses to afford loans and maintain financial stability.
- How many businesses require financing? Approximately three out of ten businesses need some form of loan, though many avoid them to prevent further indebtedness.
- What is the COE’s proposal for increased support? The COE requests a 30% increase in public financing to demonstrate government commitment to supporting Mipymes, which are vital for job creation in Puebla.
