Culture and the Process of Globalization in the Development of Latin American Small and Medium-Sized Enterprises

Abstract

There is no doubt that the small and medium-sized enterprise (SME) sector in all Latin American countries is undergoing inevitable growth and faces urgent needs due to the rapid changes taking place across all sectors, the heavy concentration of wealth in the hands of a very small number of groups, and the accelerated growth in the number of people living in extreme poverty. Although there are significant initiatives and efforts—at the level of some governments and various organized civil society groups—to promote and strengthen the development of this sector, it is clear that its environment remains fraught with uncertainty and pessimism because the process of trade liberalization continues to expand without taking into account the priorities and conditions of each nation. In line with the above, this article presents a study and analysis demonstrating the impact that culture and the process of globalization have had on the development of Latin American SMEs, along with a proposal to support this sector that includes ideas for the various stakeholder groups involved: governments, support organizations, financial institutions, university business schools, and SMEs.