SMEs: The Driving Forces of the Colombian Economy

Discover how Colombian SMEs embrace the digital age to fuel economic growth.

The Colombian economy has consistently been one of the largest in all of South America. There are many components that have brought this market success over the years, but it is actually quite difficult to pinpoint which aspects are driving their success. However, when you delve deeper into this topic, it becomes quite evident that a major part of their economic success today is built upon the foundation of SMEs. While SMEs produce less than half of Colombia’s GDP, they still produce 80% of all jobs. Considering this, it’s worth looking at how Colombia’s economic backbone is operating today, and what it will likely look like moving forward.

To begin, we have to step back and realize that Colombia is an economy that is still very much developing in terms of their technology and infrastructure. It has also had to endure an assortment of hardships, with the most recent being the COVID-19 pandemic. Even so, they have managed to navigate through this and reach a sense of normalcy as of late. A big part of getting back to this state of normalcy has been through funding by banks, and it also happens to be a topic of concern that SMEs were facing even before the pandemic.

Access to credit has been, and still is, the biggest hurdle for many SMEs in Colombia. Without access to funding from the banks, many SMEs might as well be dead in the water. The government understands just how important the SMEs are to their economy, and as such were very adamant in giving aid to this segment of their economy when times got rough during the onset of the pandemic. With the funds they received, SMEs in Colombia were able to survive these tough times, and they now look towards the future in the next stage of their growth.

The economic environment is constantly changing, and when it comes to the best prospects for many Colombian SMEs, taking advantage of the new digital age is the way to go. The world has continued to become more digitalized, and the South American region in particular has seen both a massive uptick in the number of digital users, as well as some of the highest eCommerce growth rates in the world. Colombia’s population continues to see a substantial increase in the percentage of their population that uses the internet every year, making this a very intriguing and prosperous opportunity for SMEs in the country.

In order to take advantage of these technological opportunities, Colombian SMEs need to alter the way in which they go about marketing their business. By setting up an online presence, whether that be through LinkedIn, Facebook, Instagram or other platforms, it will go a long way in spreading their exposure. Even the more remote areas of Colombia where infrastructure isn’t quite as developed yet would benefit greatly from embracing an online presence.

Colombia as a country continues to live in an ever-changing economic environment. SMEs continue to serve as the backbone to their economy, and likely will for the foreseeable future. At the same time, opportunities in the digital world continue to knock on the door, now more than ever. MBE understands the need for digitalization of business in today’s economy, and that is why it offers web services. These services can go a long way in helping businesses, specifically SMEs who are looking to establish a digital presence while also being conscientious about keeping on budget. In a country where lines of credit are hard enough to come by, affordable services like that offered by MBE could very well be worth the investment in the long term.