Small and Medium Enterprises in Bolivia, a Look Back to the Future, 1900 - 2020

Abstract

The main objective of this article is to analyze Bolivian small and medium enterprises (SMEs), their evolution, and their contribution to the country's economy. The globalization of markets is currently a reality to which companies are exposed for their survival, growth and development. In developing countries such as the plurinational State of Bolivia, this reality becomes more relevant due to the socioeconomic characteristics of the country, where the main economic activity is dependent on the export of non-renewable natural resources (natural gas and minerals), and to a lesser extent the export of primary products. In this context, the article shows that SMEs struggle to consolidate their position in local markets, and have a low participation in global markets. The article reviews relevant secondary and primary literature, and concludes that SMEs require public and private support to contribute to the promotion of entrepreneurial culture, enter into global production chains, develop technological and innovation capabilities, and achieve growth in a sustainable manner and with high levels of competitiveness. The research method used is the review of relevant primary and secondary bibliographic sources of information about the origins, evolution and current situation of SMEs in Bolivia, and about possible alternatives for growth and development.