MSMEs identified as key drivers of Dominican Republic development

Economist Clara González has identified micro, small, and medium-sized enterprises (MSMEs) as a primary driver of social and economic development in the Dominican Republic. She highlighted their critical role in job creation, economic diversification, and social inclusion, noting that MSMEs account for approximately 61.6% of the country's jobs.

González praised the FinaRD 2036 Program, an initiative supported by the Inter-American Development Bank (IDB) that allocates US$100 million to strengthen development banking. The program aims to expand access to long-term productive credit, specifically targeting micro and small businesses, women-led enterprises, and export-oriented production units.

The initiative is expected to redefine traditional financing models by encouraging more flexible risk assessments and the acceptance of non-traditional collateral. This shift addresses long-standing challenges for MSMEs, such as limited guarantees, lack of formal credit history, and high loan costs. By linking loans to underlying economic activities like inventory purchases and utility payments, banks can better assess the financial behavior and repayment capacity of these borrowers.