According to a private survey conducted by IAE Business School, small and medium-sized enterprises (SMEs) in Argentina continue to face high tax burdens as their main obstacle, limiting their competitiveness against foreign competition. Amid this situation, 61% of entrepreneurs plan to hire staff in the next six months, while only 5% intend to reduce their workforce.
The current economic stability is valued, although it also presents new challenges. To effectively compete in this scenario, companies will need to adjust their costs, work with stable prices, more efficient processes, and tight margins. In this regard, the tax pressure remains the greatest concern, as in stable environments, prices are a permanent reference, and companies must adapt to maintain their profitability.
Guillermo Fraile, a professor at IAE Business School, explained that 61% of entrepreneurs expect the lifting of currency controls to have a positive impact on their businesses. Performance expectations for companies in the next six months have increased, with 65% of respondents anticipating an improvement. Additionally, 73% of entrepreneurs believe the country's situation will be better in the same period.
Despite growing optimism, SMEs continue to face challenges, especially in talent search, as 73% of respondents have difficulties finding qualified staff. Along with the tax burden, the instability of the rules is mentioned as another significant concern.
The report highlights that, although there is greater optimism among Argentine SMEs, it is essential for these companies to adapt to an increasingly competitive environment. Furthermore, the importance of tax reform by the government is mentioned to facilitate the growth and competitiveness of SMEs in the country.
