Small businesses in Peru face high failure rates

In Peru, 9 out of 10 micro and small enterprises (mypes) close within their first two years, according to the Mypes Unidas del Perú (MUP) association.

Paola Valdivia Rodríguez, academic coordinator at the Universidad Tecnológica del Perú (UTP), notes that successful business growth requires more than just a good idea; it demands effective management, environmental adaptation, and timely decision-making. Key obstacles to business continuity include informality, limited access to financing, poor management, and a fear of failure.

To improve sustainability, experts recommend systematic management practices such as financial planning, purchase controls, accounting records, and competitor analysis. Additionally, adopting digital tools and artificial intelligence can optimize processes and expand sales channels. Scaling can also be achieved by integrating into supply chains or becoming efficient suppliers for larger companies.