Structural Heterogeneity and Poor Microenterprises in Argentina
Marta Bekerman and Cecilia Rikap
Guidelines for specific policies ( ...continuation )

This training should tackle the sector's main problem: commercial, financial and administrative management. The enterpreneurs lack knowledge related to effective business management. Another important aspect is the establishment of technical schools in the vicinity of the geographical location of the microenterprises.

In order to make their businesses grow and overcome their condition of subsistence, the formalization of these businesses is also necessary, for example, through the Monotributo Social scheme. However, the success of this scheme depends upon decentralization. Agents need to visit the businesses with the necessary information and forms for their enrollment.

In regards to problems related to infrastructure, it is important that the State provide physical spaces or locations, preferably outside of these precarious urban settlements. This could facilitate sales outside of these neighborhoods, as well as compliance with food safety regulations in the case of microenterprises dedicated to the food market. Likewise, the State could have agents to facilitate tasks related to opening and fixing-up these new locations, who could also instruct the entrepreneurs regarding the necessary procedures for complying with food safety regulations.

Finally, a fundamental issue for the growth of this sector is the implementation of demand generation policies. On the one hand, the State could redirect part of its own demand to poor microenterprises. On the other, it could launch a credit plan with preferential rates for companies who place wholesale orders with the informal sector. This measure would be of particular importance to textile producers who could sell their production on the wholesale market, giving them greater incentive to improve their training and productivity.

All told, the microenterprise sector in the social or popular economy in precarious urban settlements in Buenos Aires requieres distinctive socio-productive strategies that use flexible tools that can be adapted to the characteristics of each one of the three types of enterprises identified in this study.

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