Latin America's Small And Medium-Sized Enterprises: The Organisational Challenge

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Executive Summary

Small and Medium-sized Enterprises (SMEs) operating in Latin America face major organisational challenges stemming from globalisation and shifting corporate paradigms. In a world of change, businesses frequently try to seize new export opportunities, compete with imports in liberalised markets, partner with large multinational firms or attract outside investors or buyers. In such an environment, companies with traditional personalised organisational hierarchies tied to a single owner or family will no longer be able to compete. In order to survive, therefore, firms that are locally owned, privately held and often family-run must develop modern, nimble and transparent management and business structures.

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