In Latin America, the instruments are aimed at activating the demand for work: independent work support programs, the result of the most frequent actions in this field (25 of 61 programs), and the direct and indirect generation of employment (8 and 10). of 61 programs, respectively).
Support for independent work.
The actions to support independent work are aimed at promoting opportunities for self-employment and micro-entrepreneurship, favoring the increase of assets through seed capital or micro-credits.
In addition, they often include training programs on savings and finance, micro-entrepreneurship and economic planning. Some offer technical assistance and support the link with productive or marketing networks. Financial support and micro-credit programs seek to facilitate access to monetary resources so that people who belong to vulnerable groups and have limited access to credit services and other financial instruments can start new ventures or improve their small businesses. . In this way, the generation of income is affected. To access funding, some programs require that participants complete a minimum of hours of training and have a micro-enterprise underway or with a business idea.
The aim of the trainings is for the recipients to improve their administrative and management skills and financial knowledge (economic planning, savings, credit, investment and others) and learn to negotiate and market their products. They also usually include the accompaniment of tutors who provide advice on the preparation of business plans, tax commitments and search for financing, as is the case with the Plan Trabaja Trabaja and Jóvenes Rurales Emprendedores de Colombia. In most cases, the financial supports correspond to a defined amount of money, but in others they cover the total value requested under a business plan.
In the programs Mi Chacra Emprendedora – Haku Wiñay of Peru and Generation of Micro-entrepreneurship of the Indigenous Urban of Chile, the funds are granted through a public contest after the presentation of business projects. The supports can also be offered in kind, such as seeds, animals or tools for agricultural activities; this is the case of the Food Productive Program of Nicaragua and Kore Peyizan of Haiti. Several of the independent work support programs are aimed at young people and their goal is to develop the productive aspect and generate independent work through education for entrepreneurship, access to financial markets under special conditions and accompaniment (ranging from identification of the business, the development of the idea and the administrative and technical procedures until the consolidation of the company). This is the case of the Colombian program Young Rural Entrepreneurs, Youth with More and Better Work in Argentina and Young People with Prospera in Mexico.
About a fifth of the independent work support programs are geared towards the promotion of female entrepreneurship and provide care services. In Chile, + Capaz has the Entrepreneur Woman component, which offers training in the generation of skills for business development to women who carry out an undertaking or intend to do so, or who work independently. Some, such as Mujeres Ahorradoras en Acción in Colombia and Plan Argentina Trabaja, promote associative work and cooperativism. In turn, ten of the analyzed programs promote entrepreneurship in rural areas -where the offer of salaried work is scarcer, seeking not only the generation of autonomous income, but also the promotion of production for self-consumption and the improvement of food safety. Examples of these are Rural Solidarity Communities of El Salvador and the Mi Chacra Emprendedora – Haku Wiñay program in Peru.
Finally, some programs encourage the formalization of micro-entrepreneurs and self-employed workers through access to simplified taxation regimes. Examples are the Social Monotributo of the Plan Argentina Trabaja, the Program for Strengthening Entrepreneurship in Uruguay and the Brazilian microcredit program Crescer, linked to the Brasil Sem Miséria plan, which provides guidance to legalize business and access the benefits of the scheme special for individual micro-entrepreneurs.
Direct and indirect employment generation
The direct generation of employment consists of the expansion of the demand for work through public plans that offer temporary jobs, usually in unskilled labor services, public works and local and community infrastructure projects, as is the case of the Program of Community Employment of Argentina and the Temporary Employment Program of Mexico. The recipients, unemployed persons belonging to households in a situation of socio-economic vulnerability, carry out transitory works of public utility for a limited period of time (in the case of the Uruguay Trabaja program, up to nine months) and receive a monetary transfer. These actions have been implemented frequently to deal with situations of economic crisis, as occurred in Argentina with the Unemployed Heads of Household Plan (2002-2005) or in Uruguay with the National Social Emergency Assistance Plan ( PANES) (2005-2007).
In recent years, in a regional context of economic growth and reduction of unemployment, they have not been a central instrument in labor policies and productive insertion for the population living in conditions of poverty or vulnerability, but this could change in the current scenario of low growth. Indirect employment generation takes the form of public economic subsidies, usually for a defined period of time, granted for hiring by private companies of young people and adults living in poverty or belonging to groups considered vulnerable. These subsidies operate as an incentive for hiring, since they reduce labor costs by covering part of the salary (for example, PROEMPLEAR in Argentina, Youth Employment Subsidy and Women’s Work Bonus in Chile) 24, from contributions to Social security or tax obligations (Panama Employer Sponsor Program)