Overview

Description

FINPYME Diagnostics is a two-phase program. In the first phase, management areas in need of improvement are identified, and in the second the companies undergoing a diagnostic review receive individual or group-based technical assistance.

Objective

The purpose of FINPYME Diagnostics is to diagnose SMEs and provide them with an objective review of their competitive position. This enables them to take the steps necessary to better access medium- and long-term financing. Throughout the region, SMEs are underserved by the banking sector due to the lack of information available to banks; a FINPYME diagnostic review helps greatly in bringing together the information banks need in order to make long-term lending decisions. To this end, a FINPYME diagnostic review covers the following:

  • basic company information
  • external and internal analysis of the company (industry attractiveness, competitive position, corporate governance, etc.)
  • environmental and occupational safety and health standards and labor principles
  • intellectual capital and innovativeness (trademarks, royalties, brand names, tax exemptions, licenses, collective experience, level of education and training, management style, quality policies, technological level, etc.)
  • diagnosis and evaluation of present and future projects (ability to adapt to changes, vitality, corporate culture, willingness to plan ahead, owners’ commitment to the company, and corporate social responsibility)
  • analysis of the economic and financial position of the company

The diagnostic reviews are used to develop Competitiveness Improvement Plans, which identify areas where the companies need to improve their competitiveness. Based on these plans, the IIC designs individual or group-based technical assistance activities.

Participation Criteria

Companies that want to participate in FINPYME Diagnostics should:

  • have been operating for at least three years and, preferably, have audited financial statements
  • have annual sales of at least US$150,000 ( the amount varies according to country conditions)
  • preferably, be exporters or have the potential to become exporters
  • have expansion projects planned for the future or other short-, medium-, or long-term financing needs, such as permanent working capital or short-term debt restructuring/refinancing
  • operate in IIC-eligible sectors
  • operate in compliance with local environmental and occupational safety laws and regulations