Peru: 250,000 jobs are lost in small businesses due to protests (RPP Noticias [Spanish] - 2/2/2023)

Peru: 250,000 jobs are lost in small businesses due to protests (Spanish)

The United Mypes (Micro-Enterprises) Association of Peru (MUP) reports that more than 70,000 micro and small companies have already gone bankrupt because of ongoing demonstrations against the government of President Dina Boluarte.

The Vice Ministry of Mype and Industry calculated losses of about S/125 million are being generated for each day of stoppages. (Andina)

More than 70,000 micro and small businesses have gone bankrupt since the protests began in December, warns the United Mypes Association of Peru (MUP).

The Director of the Association, Daniel Hermoza, maintained that 3% of the businesses had to close.

"There is a higher rate of bankruptcy of micro-enterprises in Peru and it is between 2.5% to 3%, which is equivalent to 70,000 to 75,000 businesses. That figure is in the crisis period that began in 2022 and 2023. This situation is very serious", he commented.

Hermoza specified that the mypes (micro-enterprises) are closing because they have no solvency after the Christmas campaign, in which S/ 3 billion were lost. Now, he is alerted that 25% of the school season is affected.

"They are canceling purchase orders or reducing them by half, as is the case with the uniforms in Gamarra or the shoes in Trujillo," he told the newspaper Gestión.

Given this situation, it is estimated that between 200,000 to 250,000 formal jobs are being lost.

It should be remembered that, according to the Vice Ministry of Mype and Industry, it calculated that losses of about S/125 million are being generated for each day of stoppage.

In addition to lower incomes, it is estimated that 40% of mypes stopped paying their debts to financial institutions.

Tags: #Peru #Protests #Economy #Mypes

 

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