SMEs in Latin America: Classification, Labour Productivity, Challenges and Perspectives

Abstract

This article presents a general diagnosis of SMEs in Latin America. It is divided into four sections. The first presents a succinct discussion of the classification of firms in the main Latin American countries, comparing them with the stratification of the United States, Canada and the European Union. The second section analyses the importance of the micro, small and medium-sized enterprises (MSMEs) segment and the sub-segment of small and medium-sized enterprises (SMEs) in the economy, through their share in the number of enterprises, contribution to employment, generation of value added and value of exports. The third section reflects on differences in labour productivity and wages, showing the internal and external gaps in the returns to labour that prevail in micro, small and medium-sized enterprises in Latin America. Finally, the fourth section summarises some of the challenges that companies face in order to overcome the main problems that inhibit their growth and access to the international market