According to reports from Argentine media on November 10, more than 16,500 small and medium-sized enterprises (SMEs) have closed down in Argentina this year. Particularly in the second half of the year, around 6,500 businesses exited the market, leading to the loss of nearly 160,000 jobs. Despite the Argentine government's repeated signals of economic recovery, the challenges faced by domestic SMEs have yet to be effectively addressed. This trend reflects deep-seated issues within Argentina's economy, particularly sluggish consumer demand, high service costs, and export difficulties, all of which have severely impacted the survival and growth of SMEs.
The plight of SMEs is closely tied to Argentina’s persistently weak consumer market. According to statistics, retail sales for SMEs in Argentina have dropped by 13.2% year-on-year, with particularly sharp declines in the consumption of everyday goods such as beef, which has reached its lowest level in 26 years. The National Confederation of Medium Enterprises (ENAC) notes that rising operating costs and heavy tax burdens have placed immense pressure on small businesses. Furthermore, the competition from larger enterprises has made it increasingly difficult for SMEs to compete in the market, creating a vicious cycle of falling sales, business closures, and further contraction in both employment and consumption, thereby exacerbating the overall economic downturn.
Although the Argentine government has promised to implement support policies for SMEs and has proposed the establishment of a "Small and Medium Enterprise Law" to stimulate economic recovery, progress has been slow, and the business community remains skeptical about the government's ability to fulfill these promises. A recent survey conducted by the Argentine Entrepreneurs' Development Association (ENAC) found that more than 80% of entrepreneurs believe the economy is still in a state of recession or depression, with no clear prospect of a short-term recovery. Even in some industries where there are signs of growth in the number of businesses, sluggish sales continue to be the main barrier to development. Data shows that only 40.3% of SMEs achieved profitability in the third quarter. While this represents some improvement, the overall operational challenges remain severe, indicating that Argentina's road to economic recovery is still long and fraught with difficulties.
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