The country offers in the open America section for its daily and global informative contribution to sustainable development. If you want to support our journalism, subscribe here. The world is much more chaotic than we would like to admit. In this volatile environment, micro, small and medium -sized companies (MSMEs) in Latin America have greater vulnerabilities due to economic misfortuations, natural disasters aggravated by climate change and global commercial tensions. Although they make up a diverse group and are responsible for generating most of the employment in the region – they employ every six of ten people, according to the Development Bank (IDB) -, they also share structural features such as informality, low productivity and limited planning. These weaknesses are exacerbated especially in unipersonal and smaller -scale ventures. Businesses require navigation routes that help them be more resilient and flexible to changes. Or as defined by the mathematician and writer Nassim Nicholas Taleb, being «antifragile.» «The last five years have taught us that,» said Manola Zabalza, Secretary of Economic Development of Mexico City, at the premiere of an advice program for SMEs through a public and private sector alliance. «We have seen logistics chains that have broken, a pandemic, political changes worldwide, and also treated and tariffs. We have to train our MSMEs to be competitive within chaos.» Below are three factors that are crucial for small businesses to have greater predictability and, in correspondence, more margin of maneuver to deal with storms. A condensed guide to navigate uncertainty.
Measure to improve
Of every 100 MSMEs born in Mexico, 52 dies during the first two years, according to official data. Although the probability of life increases as businesses reach older, overcoming that milestone requires a lot of planning. «Companies and, mainly SMEs, do not yet have a level of financial and operational maturity adequate to navigate these mobile times,» says Alejandro Toiber, general manager for Mexico of Xepelin, a Fintech of Chilean origin that offers financial and management services for companies. According to a survey carried out by the platform among a hundred entrepreneurs and managers in Mexico, only half of the businesses make income and expenses budgets monthly, while only 15% of respondents generate other metrics that provide long -term vision, such as cash flow projections. Just 5% contemplate a contingency plan in its annual projection. “The environment is very changing and what are the risks?” He adds. «That if a company has no predictability, it cannot make medium and long term decisions. They must be clear about the important numbers, those that move the needle.» Doing it, explains, will also allow them to better manage the risks associated with the business, such as payments of payments or lack of cash. Toiber points out that there are currently digital tools, free or very accessible, designed to automate these projections and even highlights the potential of AI in that field. Through chatgpt commands, for example, budgets can be prepared or expedited repetitive tasks, such as writing emails. In addition, he explains that Fintech also offers a free -rate list that includes templates for payroll or credit simulators. Other organizations, such as Pro Women, generate free training and financial support with gender vision, while microcredit institutions, such as Tuiio, from Banco Santander in Mexico, offer specialized financing programs in the sector.
Study your ecosystem
World Bank estimates indicate that Latin America and the Caribbean will conclude this year with positive, but weak growth, close to 2%, becoming the region with the lowest global growth. Much of this, in addition, is due to the cut of investments due to the uncertainty unleashed by the tariff war from the United States. Some countries will feel more strongly the onslaught, such as Mexico, where it is projected that the economy is passed at a rate of 0.2%. Others, such as Argentina or Guayana, will experience expansions of their Gross Domestic Product (GDP) greater than 5%, while the largest economy in the region, Brazil, will grow a modest 1.8%. Before this panorama, companies, especially the smallest, must make an effort to understand the links that make up their value chain and plan their future based on that. For example, trying to define how deep and solid is its relationship with important Stakeholders, such as its clients and suppliers, or if, on the contrary, they are easy to replace budget cuts. «Do you have short -term contracts? In the long term? Do you have supply agreements or don't you have them?» Are some of the questions to be asked toiber. «You have to have the capacity to say,» customers are exporters, they are subject to risks with tariffs. Support networks, discussion groups, associations or any other networking effort or networks creation among colleagues – and even among competitors – willing to give lights on their success cases, are also crucial to create companies with the greatest endurance.
Financial inclusion
Although the formal credit offer for the MSMEs of the region is limited and its massification is a pending debt, entrepreneurs must move away from the irregular schemes of loans as much as possible. Access to financing and, even more, with favorable conditions, it is still a tranca stone. According to official data from each country, the financial inclusion index of the MSMEs of Peru was close to 28% in 2024, which reflects a drop in the use of financial services, particularly in credit. While, in Colombia, credit penetration in the sector is approaching 20%. The statistics also account for the preference of the sector to obtain other sources of financing, such as loans of suppliers, factoring or, to a lesser extent, irregular credits, such as drop by drop, a scheme of speculative charges of very high interest and extortion. In the field of payments, different studies indicate that accepting electronic fertilizers, in person or online, increases sales of shops by up to 30%, in reflection of a world that continues to abandon the use of cash. «Without financial inclusion of the MSMEs, there is no financial inclusion of the country,» says Sabalza, adding that the responsibility of financial institutions should not only be the credits, but also in educating and accompanying their users to make the best use of resources and meet their obligations up to date.
