Promoting SME Competitiveness in Argentina

Promoting SME Competitivenessin Argentina Developing with digital technologies © International Trade Centre 2024 The International Trade Centre (ITC) is the joint agency ofthe World Trade Organization and the United Nations. Street address:ITC54-56, rue de Montbrillant1202 Geneva, SwitzerlandPostal address:ITCPalais des Nations1211 Geneva 10, SwitzerlandTelephone:+41-22 730 0111Fax:+41-22 733 4439E-mail:itcreg@intracen.orgInternet:http://www.intracen.org Promoting SME Competitivenessin Argentina Developing with digital technologies About the paper Small and medium-sized enterprises (SMEs) are a pillar of Argentina’s economy. Boosting their competitiveness is keyto economic recovery. Based on data from the International Trade Centre’s SME Competitiveness Survey, this report highlights the importance ofdigital technologies in improving small businesses’ market information, operational efficiency and innovation capabilities. The report recommends policy reforms to boost digitalization, skills matching, access to finance and business supportservices. These measures are crucial to create an enabling environment where SMEs can thrive and to strengthen theArgentine economy. Publisher:International Trade Centre (ITC) Title:Promoting SME Competitiveness in Argentina: Developing with digital technologies Publication date and place:Geneva, October 2024 Page count:78 ITC Document Number:SPTI-24-185.E Citation:International Trade Centre (2024).Promoting SME Competitiveness in Argentina: Developing with digital technologies.ITC, Geneva. For more information, contact:Valentina Rollo, rollo@intracen.org For more information on SME Competitiveness Survey, see:https://intracen.org/resources/data-and-analysis/research-and-data ITC encourages the reprinting and translation of its publications to achieve wider dissemination. Short extracts of this paper may be freely reproduced,with due acknowledgement of the source. Permission should be requested for more extensive reproduction or translation. A copy of the reprintedor translated material should be sent to ITC. Digital image(s) on the cover:©Shutterstock.com and ©CAC © International Trade Centre (ITC) Foreword Small and medium-sized enterprises (SMEs) are the backbone of Argentina’s economy: they represent 99.4% of allbusinesses in the country and employ millions of Argentinians, from Jujuy to Tierra del Fuego, spanning sectors fromservices to agriculture to construction. Despite their importance, Argentine SMEs face a range of challenges that prevent them from reaching their full potential.The country’s history of macroeconomic volatility is one of the barriers they contend with, making growth and long-termplanning exceedingly difficult. Addressing these macroeconomic issues is essential. Recognizing the vital contribution of SMEs to economic development,Argentina has established a framework of laws and policies aimed at supporting the sector during periods of economicturbulence. Strategies that build SMEs’ capacity to grow over time are equally important. The path to growth – for the country and for itsSMEs – requires rules to be clear, simple and reasonable, aimed at expanding the freedom of all economic stakeholders. For the initiatives to support SMEs to be truly effective, they must be informed by a deep understanding of the realitiesthat Argentine SMEs face. To this end, the International Trade Centre (ITC), the Argentine Chamber of Commerce andServices (CAC), and the Productivity and Competitiveness Observatory (OPyC) of CAECE University have come togetherto assess the competitiveness of Argentine SMEs. These institutions conducted a comprehensive diagnostic exercise,pinpointing strengths to build upon and weaknesses to be overcome. As part of this initiative, 614 businesses across Argentina were interviewed for the SME Competitiveness Survey in 2023and 2024. The findings underscore why digital technologies are invaluable for improving market information, increasingoperational efficiency and building the innovation capabilities of small businesses. The report recommends reforms toenhance digitalization, skills matching, access to finance and business support services. Implementing these measuresis crucial for creating an environment in which SMEs can thrive and contribute to strengthening the Argentine economy. The ITC, the Secretary of Industry and Commerce of Argentina, and the Argentine Chamber of Commerce and Servicesshare a common vision of enhancing the competitiveness of SMEs so they can succeed in local, regional and internationalmarkets. With well-targeted policies in place, trade can serve as a catalyst for the structural transformation of the economy,leading to greater prosperity and economic opportunities for all Argentinians. We view this report as a significant step towards realizing this shared vision and remain committed to supporting thegrowth and resilience of Argentina’s SMEs in the years to come. Pamela Coke-Hamilton