Economic Regime and development of small and medium-sized businesses in Latin America

Abstract

One of the alternatives that arose in Europe in the mid-nineteenth century to recover from the economic crisis at the end of World War II was the creation of Micro, Small or Medium Enterprises, which are a private economic organization and are made up of a or several natural or legal persons, which are established in "Company" and whose purpose is to carry out activities of extraction, transformation, production, commercialization of goods or provision of services, supplying a local, regional market and in some cases promoting the export of their products. Services. These types of companies were arriving in Latin America supported by factors of a historical, political, social, and environmental nature, as a way to strengthen economic models and to decentralize large cities, thus strengthening local development and empowering the municipality. In this area we find a great diversity of economic models, on the one hand there are countries with a free market economy where the State promotes private initiatives and where capitalist production relations allow the development of this type of company. On the other hand, there are the economies that respond to the construction of a socialist model of production and that, in correspondence with the socio-economic heterogeneity of the transition period, resort to this type of initiative. In either case, an imbalance is observed in the mechanisms of the law of value (supply, demand, prices, competition) due to dependence on foreign capital. The economic integration of these countries would be the most viable alternative to face the crises of this globalized world.