World Bank2013-08-262013-08-262002-08https://hdl.handle.net/10986/15360The convertibility law, and economic liberalization in the early 1990s in Argentina, brought about dramatic changes in economic performance. To adjust to increasing globalization, and a series of external shocks, small and medium size enterprises (SMEs) were confronted with the task of developing business strategies to secure their niches in the new arena. However, such strategies were obstructed by constraints in the legal, and economic framework, weak information and technology aspects, and insufficient access to finance. The report builds on the following issues: 1) the critical aspect of the SME sector to the Argentine economy, both from a growth/efficiency, and equity standpoint; yet on average, SMEs have failed to attain their potential; 2) the highly heterogeneous configuration, particular organizational, and technological characteristics of SMEs; 3) the high degree of institutional rigidity of the country's business environment; 4) the need to develop policy actions to deepen financial markets for SMEs; 5) the significant knowledge constraints - by and large, no training nor technical assistance services are available, mainly because of high costs; 6) the striking multiplicity of SME programs, yet with uncertain impact; and, 7) the need to overhaul SME policies, and programs to prod more incentive- and demand-driven approaches. Elements for effective SMEs assistance programs include the development of a standard set of metrics to measure performance of SMEs, and, entrepreneurial management, deemed of critical importance. As well, cost recovery growth should be targeted, extensively using follow-up techniques, and leveraging their effectiveness through the use of information, and communications technology. Most importantly, the policy challenge lies in taking initiatives to develop institutions at the national, and local levels, to encourage transition from inward-looking firms, narrow search routines, and information-poor markets, to learning-oriented firms, and mature, information-rich markets.en-USCC BY 3.0 IGOACCOUNTINGASSET MANAGEMENTAVERAGE PRODUCTIVITYBANK CREDITBANK LOANSBANK SIZEBANKING SYSTEMBUSINESS DEVELOPMENTBUSINESS ENVIRONMENTBUSINESS REGISTRATIONCOMMERCIAL DEBTCOMPANYCOMPARATIVE ADVANTAGECOMPETITORSCONGLOMERATESCONSOLIDATIONCREDIT MARKETSDEBTDECISION MAKINGDEREGULATIONECONOMIC ACTIVITYECONOMIC GROWTHEFFECTIVE DEMANDEMPLOYMENTENVIRONMENTAL MANAGEMENTEQUILIBRIUMEQUITY INVESTMENTSEXPANSIONFACTORINGFINANCIAL INTERMEDIARIESFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL STRUCTUREFIRM SIZEFISCAL YEARFIXED COSTSFOREIGN DIRECT INVESTMENTGOVERNMENT POLICIESINCOMEINTEREST RATESJOB CREATIONLABOR FORCELABOR MARKETLABOR PRODUCTIVITYLAWSLEASINGLEGAL FRAMEWORKLEGAL PROCEDURESLIQUIDATIONMUNICIPALITIESPRIVATE EQUITYPRIVATE SECTORPRIVATE SECTOR DEVELOPMENTPRODUCTIVITYPUBLIC POLICIESQUALITY STANDARDSREGISTRATION PROCEDURESREGULATORY FRAMEWORKRISK FACTORSSMALL AND MEDIUM ENTERPRISESSMALL AND MEDIUM-SIZED ENTERPRISESSMALL FIRMSSMESME DEVELOPMENTSME LENDINGSME POLICIESSME POLICYSME PROMOTIONSME SECTORSMESTECHNICAL ASSISTANCETECHNICAL SUPPORTTRANSACTION COSTSWORKING CAPITAL SMALL & MEDIUM SCALE ENTERPRISESCONVERTIBILITYECONOMIC LIBERALIZATIONGLOBALIZATIONEXTERNAL SHOCKSBUSINESS CONDITIONSLEGAL FRAMEWORKECONOMIC CONTRACTIONINFORMATION TECHNOLOGYCOMMUNICATIONS TECHNOLOGYFINANCING OPTIONSGROWTH PROMOTIONEQUITY OBJECTIVESORGANIZATIONAL EFFECTIVENESSTECHNOLOGICAL CAPACITYINSTITUTIONAL FRAMEWORKBUSINESS ENVIRONMENTPOLICY FRAMEWORKFINANCIAL MANAGEMENTKNOWLEDGE ACQUISITIONTRAINING NEEDSTECHNICAL ASSISTANCEDEMAND-DRIVENINCENTIVESPERFORMANCE INDICATORSENTREPRENEURSHIPMANAGEMENT DEVELOPMENTCOST RECOVERYPOLICY DEVELOPMENTWorld Bank10.1596/15360