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TRANSCRIPT
Brazilian Development Bank
September, 2009
Venture Capital Division (ACE) and Financial Division / Accountancy Department (AF/DEPCO)
BNDES PRODUCTS FOR SMEs :
BNDES Card (machinery and equipment)
BNDES Automatic (indirect operations up to R$ 10 million)
Specific lines and programs (by sector, cash flow, imports and exports, innovative capital line, technological innovation line etc.)
Capital Market – direct and indirect operations (CRIATEC Fund and Venture Capital Funds);
Technological Fund (FUNTEC);
FGE BNDES (facilitate the access to credit for SMEs)
DISBURSEMENT PER SIZE (%)
NUMBER OF OPERATIONS AND DISBURSEMENT PER SIZE (JAN. – JULY 09)
62.8
5.23.32.7
Micro and Small Medium
Individual Large
94,948
12,498
11,275
67,228
Micro and Small MediumIndividual Large
R$74.1 billion
Number of Operations
185,949
Disbursement
SMEs DISBURSEMENT (JAN. – JUL/2009)
Obs. These charts do not include acquisition of assets.
R$ billion
1.1
4.0 1.2
0.4
4.6
North Northeast South-east
South Center-West
0.4
10.8
Direct Indirect
PER REGION PER OPERATION
TYPE
SMEs DISBURSEMENT (JAN. – JULY 2009)
Obs. These charts do not include acquisition of assets.
R$ billion
2.1
1.3
2.6
5.3
Agrobusiness Industry
Infrastructure Trade and Service
3.3
5.2
2.7
Micro and Small Medium Individual
PER SECTOR PER SIZE
GROWTH CHAIN
SeedCapital
CRIATEC
Private Equity
GovernanceFunds
Secondary Offers
Capital Market
Seed
VentureCapital
9 New Funds
New-bornEnterprises“Start-Ups”
InitiatingEnterprises
“Early Stage”
EmergentEnterprises
MaturedEnterprises
InitialPublicOffer
7 Companies57 Companies13 Funds
29 Companies8 Funds
The range of products seeks to offer proper resources to accelerate the enterprises’ growth cycle:
INFORMATION FROM IBGE AND SEBRAE – SMEs
SMEs generate 60% of formal job vacancies in Brazil (Sebrae -
2002);
They are responsible for 25% of Brazilian GDP (Sebrae – 2002);
They represent 99.7% of the 5.2 million registered enterprises in
Brazil (IBGE – 2006) and more than 95% in the world (OECD –
2004);
They are responsible for 45% of formal job vacancies and 55% of
employed personnel;
SMEs also represent 60% of the salaries paid in Brazil.
NUMBER OF ENTERPRISES IN BRAZIL
Numbers and percentages of enterprises according to size Source: IBGE (2006)
92.1%
0.9%
6.7%0.3%
Micro Small Medium Large
5,273,600
385,343
52,977
15,600
ABOUT BRAZILIAN SMEs
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Micro Small Medium Large
0-9 10-49 50-249 250-more
Enterprises Employees Registered Employees Salaries
Percentage distribution of: number of enterprises, total employees, registered employees and salaries according to the size of the enterprise - Brazil - 2006 Source: IBGE (2006)
* The ranges refer to total employees.
*
PDP – FOUR MACRO-GOALS:
Increase Brazil’s investment rate to 21% of the GDP (17.6%
as of 2007);
Expand private investments in R&D to 0.65% of GDP (0.51%
as of 2005);
Expand Brazil’s role in global trade by achieving 1.25% of
total global exports (1.18% as of 2007); and
Increase the number of micro and small export enterprises
by 10% (11,792 as of 2006).
HOW IMPORTANT IFRS ARE TO SMEs
ADOPTING IFRS LEADS TO THE STRENGTHENING OF CORPORATE GOVERNANCE PRACTICES WHICH ARE ESSENTIAL FOR THE SUSTAINABLE DEVELOPMENT OF THE ENTERPRISE.
• It eliminates repeated work for the accountancy department - Efficiency;
• It reduces the differences found in information provided by different departments - Transparency;
• It allows the comparability between financial statements - Universal Language;
• It increases the reliability of the enterprise - “Accountancy is the language of •business”; and
• It reduces mistakes – Puts an end to the coexistence of parallel rules.
DIRECT EFFECTS:
HOW IMPORTANT IFRS ARE TO SMEs
This eliminates repeated work for the accountancy department - Efficiency; This reduces the differences found in information provided by different departments - Transparency;This allows the comparability between financial statements - Universal Language;This increases the reliability of the enterprise - “Accountancy is the language of business”; andThis reduces mistakes – Puts an end to the coexistence of parallel rules.
It facilitates global relationships for these enterprises through: • retrospective and prospective evaluation of its economic and financial situation by banks, clients and suppliers;
• evaluation of possible investors;
• foreign loans;
• imports and exports (globalization);
• establishment of strategic alliances.
CONSEQUENCES FOR SMEs:
HOW IMPORTANT IFRS ARE TO SMEs
Make easier to the enterprise the: • retrospective and prospective evaluation of its economic and financial situation by banks, clients and suppliers; • evaluation of possible investors;• foreign loans;• imports and exports (globalization);• establishment of strategic alliances.
• It facilitates consolidation of the enterprises’ financial information and increases the effectiveness of public policies applied to SMEs; • It facilitates the capital flow between countries;• It reduces the cost of transactions;• It increases competitiveness;• It stimulates investments;• It simplifies the process to open capital (market liquidity);• It increases the speed at which companies grow;• It increases the generation of employment;• It reduces poverty in the country.
It eliminates repeated work for the accountancy department - Efficiency; It reduces the differences found in information provided by different departments - Transparency;It allows the comparability between balances sheets - Universal Language;It increases the reliability of the enterprise - “Accountancy is the language of business”; andIt reduces mistakes – Puts an end to the coexistence of parallel rules.
CONSEQUENCES FOR BRAZIL:
WHY IFRS SHOULD BE MANDATORY FOR SMEs
• Adhering to international standards is not simple because it deals with beliefs.
• Benefits are not immediately achieved.
• Human beings are, by nature, resistant to change.
THE BNDES’ WEBSITE - www.bndes.gov.br
CALL CENTERS
Rio de Janeiro - (+55 21) 2172-8888
São Paulo - (+55 11) 3512-5100
Brasília - (+55 61) 3214-5600
Recife - (+55 81) 3464-5800
BNDES Card - RJ: (+55 21) 2172-6337 / Others: 0800 702 6337
Indirect Operations: (55 21) 2172-8800
Exports: (55 21) 2172-8566
Ombudsperson: (55 21) 2172-8777
