SMEs in Chile and Peru face liquidity and financial management challenges

Small and medium-sized enterprises (SMEs) in Chile and Peru are facing distinct economic challenges as they approach the end of the year.

In Chile, business associations including Conapyme and the Santiago Chamber of Commerce have warned of liquidity problems, declining consumption, and rising operational costs. Factors contributing to this pressure include an 8.7% annual increase in nominal labor costs, a rising minimum wage, reduced working hours, and increased social security contributions. Additionally, an unemployment rate of 9.6% and competition from informal commerce are impacting margins. While business groups acknowledged government measures like the expansion of Fogape guarantees, they emphasized the need for faster resource availability and simplified administrative procedures.

In Peru, micro and small enterprises (MSEs) are being urged to improve financial management ahead of the Christmas and New Year season. Data from ComexPerú indicates that 77.1% of these businesses do not maintain formal accounting records. Experts warn that increased holiday sales can create a false sense of profitability if entrepreneurs fail to account for replacement costs, transportation, services, and tax obligations. Proper financial tracking is recommended to distinguish gross sales from actual net profits and ensure sufficient capital for the following year.