Characterization of public financing sources for MSMEs in the State of Hidalgo. Preliminary results

Abstract

Through this paper presents the preliminary results obtained in the research project conducted in the state of Hidalgo, explaining the peculiarities of the sources of public financing available to micro, small and medium enterprises.

This study shows that very low number of SEM hidalguenses which have received financial support through various public programs designed for this purpose, and this is mainly due to the large number of requirements that require employers, which do not can be covered by this tipe of business.

Also, it was found that the majority of public funds granted to SEM fluctuate in extremely low amounts, not exceeding $50,000.00 MX be insufficient to achieve growth and ongoing development of microenterprises in the medium and long term.

Another issue identified was the extended period which is the process of obtaining public funds, which are up to 12 months, would be inconsistent with the recovery period of credit which does not exceed the same period, which contributes to liquidity problems of SEM. It was concluded that the design of public programs focused on providing financial support for SEM is inconsistent with the reality that these companies are now living within an economy is unstable as the state of Hidalgo.