Factors that influence the competitiveness of SMEs in the commerce and services sector in the Municipality of Palmira, Colombia

Abstract

This study seeks to analyze and describe the business dynamics of small and mediumsized enterprises (SMEs) in the commerce and services sector in the municipality of Palmira, Colombia. In addition, it aims at analyzing the organizational characteristics (internal and external) to determine the factors that influence the strengthening of the variables that make them more or less competitive. The study used the estimation of an econometric model and data from 219 SMEs registered with the Chamber of Commerce1 - Palmira 2017. In addition to several investigations with similar claims that seek to study the variables that relate to organizational competitiveness and how this aspect is classified as a fundamental factor in the state of success or business failure in the world, it was found that variables such as the contribution that technical support programs make to strengthen the SMEs. Good management and knowledge of the financial situation of the company and the correct management of relations with suppliers are the variables that most influence the dynamics and internal and market behavior of companies in Palmira. It is evident that more than 40% of the companies surveyed have not been trained in issues associated with competitiveness, which indicates that there are weaknesses related to the synergies that should exist between the SMEs and the institutions that provide technical support. Consequently, companies that have received training are expected to receive higher sales from the strategies learned in these trainings.