Published on Friday, February 2, 2024

Colombia | A review to Micro and SMEs in Colombia

In Colombia there are 1.7 million formal companies. Micro and SMEs represent 99.5% of formal companies, generate 79% of the country's employment, and contribute about 40% to the annual GDP.

Key points

  • Key points:
  • Formal Micro and SMEs are mostly start-ups and young companies and have lower survival rates than large companies, as well as a lower probability of increasing in size.
  • Micro and SMEs have marginal access to external markets and government purchases. Local markets, even in the same city where they are located, seem to be an important alternative for Micro and SMEs.
  • Micro and SMEs have lower access to formal credit than large companies and use their own resources or reinvestment of profits as alternative sources of financing.
  • In order to increase the number of Micro and SMEs, it is necessary to increase their productivity and promote measures to boost their growth, including greater business formality, digitalization, greater integration and market development, among others.

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