Perspectives on Business and Economics, Vol. 39, 2021 71 Introduction The foundation of economies around the world is based on the multitude of small businesses in each respective country. A study conducted by the B20 task force, the official platform for the business community across the G20 member countries, shows that small and medium-sized enterprises (SMEs) account for over 95% of enterprises, 60% to 70% of employment, and 55% of GDP (B20, 2018). Despite being mired in decades of chaotic political and economic turmoil, the importance of SMEs in Argentina is even more prevalent, with the country’s SMEs accounting for 99.8% of the total enterprises in Argentina (Ernst & Young, 2017). While multinational corporations can contribute immense investments and generate many employment opportunities, a nation’s economic well-being is deeply rooted in the performance of its local and domestic enterprises to maintain growth and stability. Yet, the volatile business ecosystem in Argentina makes it challenging for both the creation of new businesses and the survival of existing SMEs. This article explores the history of SMEs in Argentina, investigates the ongoing challenges facing existing and potential business owners, analyzes the causes of prevailing issues, and provides recommendations to strengthen the sustainability of the nation’s SME climate. History In the early twentieth century, Argentina was an economic powerhouse as one of the 10 richest economies in the world. The country’s booming agricultural industry contributed not only to its early successes but also to its later failure to keep up with modernization. Whereas other comparable countries began embracing new technologies and diversifying their trade in the mid-twentieth century, business leaders in Argentina failed to adopt these developments. Argentina’s stagnant growth can be attributed to a handful of wealthy landowning elites REVIVING ARGENTINA’S SMALL BUSINESSES Jenny Lin Argentina’s small businesses make up 99.8% of the total enterprises in the country. Yet the nation’s volatile nature has created barriers for both existing and potential business owners who face obstacles in accessing financial institutions, navigating the complex tax system, and reacting to political uncertainty. This article examines the ongoing challenges facing small businesses and offers plausible recommendations to create a more sustainable environment.
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