The majority of executives among small and medium-sized businesses (SMEs) in Latin America,especially in Colombia, Chile and Mexico, are more confident about the development of their
business compared to a year ago, according to the fifth UPS Business Monitor Latin America(BMLA).Commissioned by UPS, the study surveyed more than 800 top-level executives of SMEs in sevencountries in the Latin America region including Argentina, Brazil, Chile, Colombia, Costa Rica,Dominican Republic and Mexico.
The results revealed that more than half (53%) of the respondents believe their business isbetter today than a year ago, while over 60% are confident that their company will do betterfinancially in 12 months.
“The results from the latest BMLA study demonstrate that Latin American SMEs are looking forwardto continuing to grow their businesses in 2012,” Romaine Seguin, president of UPS Americas Region,said. “There is a sense of optimism among executives from key markets such as Brazil and Colombiawhich illustrates signs of growth and improvement for the region. We see how businesses areinvesting first in their country and then outwards, which is very positive for the development oflocal economies.”
According to the survey, nearly 63% of privately held business owners are optimistic about theregion’s economic performance. Colombia scored the highest level of optimism of any countrysurveyed with 68%, followed by Chile (58%), and Mexico (54%).
Even though there is a very positive outlook for business growth, SME executives face someissues, UPS explained. While Brazilians ranked finding and retaining qualified employees as a mainconcern, Argentineans mentioned increase in labour costs as their top problem. Furthermore,Dominicans ranked increase in fuel and energy costs as their biggest worry.
According to the BMLA, investment in marketing and sales is a top priority at a regional level.The survey also revealed that half of the respondents plan to hire more staff during the next year,with executives from Brazil and Colombia as the top two countries, which proves the high level ofconfidence in these countries.
Brazil is also seen as the most influential country when it comes to the economic and politicalfuture of the region. Compared to the results obtained prior to the crisis in 2008, however, thedesire to follow Brazil, Mexico and the European Union models has decreased, while the study’sranking of the USA and China has increased.
As part of the companies’ corporate social responsibility activities, the survey showed thatSMEs in the region are mostly committed to environmental protection projects with 34%, followed bydonations to non-governmental organisations (21%) and support programmes for communities (18%).Furthermore, executives would like to develop more Corporate Social Responsibility activitiesrelated to education and training and environmental protection with 43% and 24% respectively.
