1 / 31

PRESENTATION PLAN

THIRD TRI NATIONS SUMMIT ON SMALL BUSINESS Session II: Critical role of finance in building competitive MSMEs leading the way Title: BRIDGING FINANCIAL GAPS FOR MSME. BRAZILIAN ECONOMIC MODEL UNDER THE NEW UNCERTAINTY SCENARIO FINANCING SME IN THE BRAZILIAN CONTEXT

ishmael-conrad
Download Presentation

PRESENTATION PLAN

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. THIRD TRI NATIONS SUMMIT ON SMALL BUSINESSSession II: Critical role of finance in building competitive MSMEsleading the way Title: BRIDGING FINANCIAL GAPS FOR MSME

  2. BRAZILIAN ECONOMIC MODEL UNDER THE NEW UNCERTAINTY SCENARIO FINANCING SME IN THE BRAZILIAN CONTEXT SEBRAE´S LEADING STRATEGY FOR SUPPORTING MSE FINANCING: REDUCING THE GAPS PRESENTATION PLAN

  3. THE BRAZILIAN ECONOMIC MODEL INFLATION TARGET FISCAL RESPONSIBILITY FLOATING EXCHANGE RATES

  4. INFLATION (CPI) 12 months 18 17,24% 15 12 % 9 consenso 2008: 4,5% 6 Meta 4,5% 3 0 Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Fonte: IBGE, Bacen

  5. PUBLIC SETOR DEBT/GDP 58 54 50 % PIB 46 42 Jul 40,6% 38 Jan 02 Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Fonte: BCB

  6. FOREIGN EXCHANGE RESERVES 220 23 Set 206,1 165 US$ bilhões 110 abr 15,9 55 0 Jan 03 Jan 04 Jan 05 Jan 06 Jan 07 Set 08 Fonte: BCB

  7. EXTERNAL VULNERABILITY 11 35 30 DEBT SERVICES/GDP 9 25 20 7 % % 15 DEBT/GDP 5 10 5 3 0 1 -5 Ago 2008 2000 2001 2002 2003 2004 2005 2006 2007 Fonte: BCB

  8. BRAZIL GDP GROWTH RATE 6,0% 6 AVG 99-03 1,9% AVG 04-08 4,8% 5 4 3 % 2 1 0 -1 1T 99 1T 00 1T 01 1T 02 1T 03 1T 04 1T 05 1T 06 1T 07 2T 08 Fonte: IBGE

  9. COMPARING REGIONS... 2006 2007 Estimated 2008 (oct/07) estimated 2008 (atual) 6 estimated 2009 (atual) 5,1 5 3,9 4 2,9 2,8 % 3 1,2 2 0,8 1 0 EUA Área Euro Japão Mundo Fonte: FMI

  10. CREDIT AS % OF THE GDP 140 120 100 80 % do PIB 60 40 37 20 0 Chile Brasil Coréia México Malásia Filipinas Tailândia Argentina Source: IMF

  11. THE FAVORABLE IMPACTS FOR MSME ... ECONOMIC STABILITY CREDIT EXPANSION INEQUALITY REDUCTION Summarizing

  12. THE NEW SCENARIO AND THE SME CONTEXT

  13. BACKGROUND... • THE FINANCIAL CRISIS IS BASED ON THE LONG PERIOD OF LOW INTEREST RATES IN THE U.S • SUBSTANCIAL INCREASE IN CREDIT AND REAL ASSETS PRICES (SPECIALLY REAL STATE) • CREDIT EXPANSION WAS FOLLOWED BY FINANCIAL INNOVATION THAT ALLOWED LEVERAGE, WITHOUT PROPER SUPERVISION.

  14. IMPACTS OVER THE BRAZILIAN ECONOMY • IN THE LAST FEW YEARS, BRASIL TOOK ADVANTAGE OF THE FAVORABLE SCENARIO TO INCREASE ITS CAPACITY TO EXTERNAL SHOCKS. • ELIMINATION OF PUBLIC SECTOR FOREIGN EXCHANGE INDEBTENESS HAS INTERRUPTED AN OLD VICIOUS CICLE OF EXTERNAL IMPACT CONTAMINATION

  15. TO CONTINUE FOSTERING SUSTAINABLE ECONOMIC GROWTH TO IMPLEMENT COUNTERCICLE CREDIT POLICIES UNDER BANKING RISK AVERSION TO LOWER INTEREST RATES UNDER CURRENCY APPRECIATION AND INFLATIONARY THREATEN TO DEEPEN ECONOMIC AND POLITICAL REFORMS TO SUSTAIN SOCIAL WELFARE EXPENDITURE FOR LOWER GOVERNMENT REVENUES SCENARIO CHALLENGES FOR THE MODEL UNDER UNCERTAINTY

  16. WHY CREDIT IS SO HARD FOR MSME IN DEVELOPING COUNTRIES?

  17. USUALLY FINANCIAL SECTOR IS THE MOST REGULATED SECTOR LOWER DEVELOPMENT STAGE MEANS HIGHER ASSIMETRY AND LACK OF INFORMATION. FINANCIAL ACTIVITY STILL HIGHLY BASED ON GUARANTEES INSTEAD OF BUSINESS VIABILITY. HIGH INCOME INEQUALITIES LACK OF POLITICAL PRIORITY

  18. IT GETS WORST FOR MSME…. • FINANCIAL TRANSACTIONS HIGH FIXED COSTS FOR • LACK OF GUARANTEES AND DIFFICULTIES FOR RECOVERING • NON RELIABLE ACCOUNTING DATA • THE BUSINESS AND THE BUSINESSMAN ARE THE SAME.

  19. FINANCIAL MARKET AND THEIR TARGETS

  20. ALTERNATIVE DISTRIBUTION CANALS: BANKING CORRESPONDENTS CREDIT UNIONS ALTERNATIVE FINANCIAL PRODUCTS AND SERVICES TO BUSINESS SEGMENTS PREVIOUSLY NOT ATTENDED. LEGAL ADVANCES

  21. SEBRAE´S STRATEGY FOR SUPPORTING MSE FINANCING

  22. SEBRAE IS NOT A FINANCIAL INSTITUTION !!!! OUR MISSION IS: TO INDUCE PROXIMITY BETWEEN FINANCIAL SYSTEM AND SMALL BUSINESS TOWARDS HIGHER CREDIT ACCESSMENT AND LOWER FINANCIAL SERVICES COSTS

  23. NEGOTIATION MICROFINANCE GUARANTEES INFORMATION INFORMATION and Small Business Micro National Financial System COSTS ACCESS SMALL BUSINESS INFORMALS

  24. HOW TO REDUCE INFORMATIONAL COSTS AND CREDIT RISKS? From the individual analysis and to business groups INDIVIDUAL FIRMS COLLECTIVE

  25. Customized products and services Closer relation with the financial institution Better access conditions Collective demands and commitement What are the advantagens of such strategy for the MSE point of view?

  26. Lower costs and risks Scale Assimetry of information reduction Learning process What are the advantages of such strategy for the Financial Institution point of view?

  27. MICROFINANCE MICROCREDIT SUPPORT PROGRAM CREDIT UNIONS SUPPORT PROGRAM SPECIAL FUNDS AND PROJECTS CREDIT GUARANTEE PROGRAM VENTURE CAPITAL INVESTOR INFORMATION AND CLIENT ORIENTATION PROGRAMS AND PROJECTS

  28. FINAL CONSIDERATIONS...WHY FINANCING IS SO CRITICAL FOR BUILDING MSMEs COMPETITIVENESS ?

  29. TO FOSTER INVESTMENT AND ECONOMIC GROWTH, REDUCING INEQUALITIES TO STRENGHT CONSUMPTION AND LARGE COMPANIES CHAIN VALUES. TO DEVELOP LOCAL AND SECTORIAL MSME ARRANGEMENTS TO INDUCE INNOVATION TO PURSUE ECONOMIC STABILITY AMONG THE BRAZILIAN FAMILIES PROMOTING SOCIAL PEACE.

  30. CREDIT IS NOT A PANACEA TECHNICAL SUPPORT IS DECISIVE FOR MSME CONSISTENT PUBLIC POLICIES PRIVATE AND 3RD SECTOR ARE ALSO IMPORTANT PLAYERS IN FINANCING MSME. Some remarks...

  31. WWW.UASF.SEBRAE.COM.BR ALEXANDRE GUERRA DE ARAUJO alexandre@sebrae.com.br

More Related