Law for Promotion and Development of the Small and Medium Industry and Social Production Units
The law is based on a communal empowerment development framework through the PYMI and Social Production Units (UPS) as a source for self sustainable development. These production schemes must be conceived in a social production model. Its main goal is to promote and finance PYMIs and UPSs in order to produce goods and services that satisfy the community’s needs and also considering social, cultural, exchange and solidarity distribution values. To achieve this goal, the law tries to adapt the National Institute for Small and Middle Size Industry’s (Inapymi) structure to the new socio-productive model and to do so, there are two support systems: the information system for small and middle size industries and social property units and the Unique Booth, which will work through a technology platform that allows a suitable access to these field’s interested parties.
To certificate that the public resources are managed and administrated in a suitable manner. Additionally to these plans, the law also creates the PYMI Observatory.
Some of this law’s purposes are: to develope the installed capacity of PYMIs and UPSs. Grant technical assistance and financing on all their phases. Promote PYMIs and UPSs access to goods and services as well as work executions. Guarantee financing through the mechanisms provided for by the law. Regulate Inapymi functions.
The individuals who constituted a PYMI or a UPS are the subjects of this law.
The law defines PYMIs as: “all legally organized unit in order to develop an economic productive model through the transformation of raw materials into consumables, into manufactured or semi-manufactured industrial goods directed to the community’s needs satisfaction”. (Art.5. Number 1).
The law classifies PYMIs in the following categories: Small industry, up to 50 workers/ Annual Turnover up to 100.000 TU and the Middle sized industry, up to 100 workers/ Annual Turnover up to 250.000 TU.
Social UPSs are defined as: “Group of social and participative nature such as: cooperatives, communal councils, family productive units and any other association whatsoever that may arise from the community and which purpose is to carry out any productive economic, financial or legal trade activity, through a planned, coordinated and voluntary work, as an expression of consciousness and commitment to the people, contributing therefore to the community development, where the collective benefit prevails over the production of capital and guaranteeing benefit distributions among its members, finally influencing positively on the communities’ sustainable development”. (Art. 5, Number 2).
The law provides the PYMIs and UPS’s duties regarding the promotion of production integration mechanisms, worker training, production levels improvement and the employees' life quality, environment protection, cooperation with public institutions, community inclusion, cooperative joint work, raw materials, equipment, and domestic engines use, internal consumption.
The law foresees the creation of finance measures and mechanisms for PYMI
and UPSs. On the other hand, the President may grant a preferential tax to capital profit’s obtained on Investment projects between the PYMI and UPSs, either domestic or foreign, that include the purchase of goods or the service rendering producing joint investments. There may also be a total or partial exoneration of domestic taxes generated by said activities without colliding with the disposition set forth by the law on investment issues.
Article 13th states that the Ministry for Popular Empowerment which is competent in issues such as communal economy, will promote the creation of associative nets that allow the participation of great industries on the development of joint programs for integral improvement and which will ease the incorporation of PYMIs and UPS within an industrial complementarity and cooperation.
The law foresees a National Strategic Plan of PYMI and UPS development in order to orientate their management. The law also contemplates the creation of a Planning Committee which will define said plan and will be responsible for law compliance.
