[REVISION HISTORY]

SME economic and regulatory challenges in Latin America

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2026-10-19 03:54 UTC → 2026-10-20 03:37 UTC · added ~~removed~~

Small and medium-sized enterprises (SMEs) across Latin America are navigating various financial and regulatory challenges. In Peru and Colombia, businesses face risks from tax compliance and accounting errors, such as improper documentation, missed declarations, and incorrect registration data, which can lead to asset seizures or frozen bank accounts. In Chile, SMEs are experiencing high operational costs and declining sales, with 74% of businesses reportedly using personal resources to fund operations. To address this instability, the Chilean government has proposed legislative measures including reducing the first category tax rate to 12.5%, implementing tax transitions for growing businesses, and improving liquidity through accelerated invoice payments and simplified municipal patent debt regularization. In Argentina, retail sales for SMEs continue to face downward pressure. During the 2026 Mother’s Day period, real retail sales saw a 1.4% year-on-year decline, marking the fifth consecutive annual decrease for this holiday. According to the Confederación Argentina de la Mediana Empresa (CAME), tightened household budgets led consumers to prioritize lower-priced items. Despite aggressive promotional strategies—including discounts of up to 20%, ‘2x1’ offers, and installment payment plans—consumer behavior remained cautious, with an average transaction ticket of $63,197. Sector performance was mixed: home appliances and audio/video equipment led the decline at 3.6%, followed by cosmetics and perfumery (-3.2%), mobile accessories (-3.2%), and footwear/leather goods (-2.2%). Conversely, the stationery sector grew by 3.4% as consumers sought more affordable gifts, while clothing saw a marginal 0.1% increase. In the province of San Juan, the decline was more pronounced, with sales dropping 2.5% year-on-year, reflecting a regional trend of nearly 20 months of continuous decline.

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