By Dr. Rubén Ascúa, Rector at Universidad Nacional de Rafaela, Argentina
At the beginning of the second quarter of the 21st century, MSMEs are at the center of an essential economic and social transformation, a process in which small businesses must adapt to new rules that combine resources, knowledge, innovation, and entrepreneurship.
ECLAC projects that GDP growth in Latin America and the Caribbean will reach 2.4% in 2025 and 2.3% in 2026, meaning that the region will accumulate four years of low growth, with an average annual growth rate of just 2.3%. In turn, private consumption is expected to lose momentum in 2026. Consumption has been the main driver of economic activity in recent years, accounting for more than half of regional GDP growth. ECLAC also projects a context marked by weaker external demand and lower employment growth. The region’s growth will be contingent on the dynamics observed in both global GDP growth, especially among its main trading partners, and global trade. Likewise, uncertainty in international financial markets and the possible volatility of external financing flows, including foreign direct investment and remittances, may affect regional growth in 2026.
The following 10 trends summarize the challenges, constraints, and opportunities for MSMEs in 2026 across Latin America. These trends involve technological challenges, resource access challenges, innovation, entrepreneurial teams, resilience, and adaptability in a macro and international context marked by uncertainty.
10
The geopolitical context presented by the Trump presidency (MAGA & America’s 250th) poses particular problems and challenges for Latin America. Meanwhile, China’s opportunity in the region is emerging. Armed conflicts around the world are not seen as a concrete threat by MSMEs in the area. According to ECLAC, the region’s activity will experience slightly less than moderate expansion by 2025, with low macro capacity for growth. In short, economic difficulties are on the horizon due to a reduction in external momentum caused by the slowdown of the US, Chinese, and EU economies, with a fall in international commodity prices.
09
Industrial MSMEs belonging to value chains face significant challenges linked to the growing demand for digital innovations from both the demand side (customers who dominate the value chain) and the supply side (suppliers of specific inputs).
08
These companies face critical challenges associated with generational succession, sustainability, and adaptation to technological and cultural transformations. In this scenario, family entrepreneurial teams in Latin American MSMEs are central to driving strategic renewal and transgenerational entrepreneurship. The ability to plan succession, promote shared leadership, and capitalize on generational diversity appears to be a key factor for the continuity and competitiveness of these organizations.
07
Faced with challenges such as inflation, financial constraints, and changing tariff policies, successful MSMEs in 2025 are implementing strategies based on greater operational efficiency, strengthening their financial dimension (capital structure), and optimizing costs to navigate regional volatility. From a political perspective, there is a gradual shift to the right in the region’s democracies.
06
Business strategies are being segmented to serve both the emerging Generation Z and the growing market of consumers over 60 years of age, belonging to the ever-increasing gray generation, with specific, well-differentiated demands and the ability to join flexible labor markets adapted to the era of the 4.0 industrial revolution.
05
The transformation of HR includes using data analytics to manage remote or hybrid teams and to seek greater efficiency in talent retention in a competitive market. Remote and flexible digital talent (gig economy) through project-based human work. HR training in digital skills through training in digital tools and strengthening the digital culture in Latin American MSMEs.
04
E-commerce in the region is projected to continue growing, reaching nearly US$800 billion in 2025, driven by strong momentum in mobile commerce. The adoption of these commercial strategies by Latin American MSMEs involves increasing capital investment and access to new knowledge. Hybrid customer experience (virtual + analog).
03
Beyond experimentation, MSMEs are integrating AI to automate repetitive tasks in areas such as finance and customer service. According to Microsoft’s 2025 survey, 54% of MSMEs in the Americas already actively use AI to optimize processes. However, there remains concern about the growing investment in artificial intelligence infrastructure, which poses a weakness for the competitiveness of MSMEs in Latin America. According to ECLAC, many MSMEs in Latin America lack adequate digital infrastructure, exacerbating the digital divide and reducing competitiveness. At the same time, concern about the impact of AI on employment, especially for university graduates, is expected to increase.
02
Alignment with ecological principles is no longer optional. Companies are adopting sustainable technologies, optimizing resource use, and reducing waste to meet investor and consumer demands. Limiting global warming is not up for debate, but the policies of the US, China, and even Russia are not aligned with the push for renewable energy. One encouraging fact is that clean technologies are booming throughout the global south, and companies will seek to meet their sustainability goals.
01
Beyond experimentation, MSMEs are integrating AI to automate repetitive tasks in areas such as finance and customer service. According to Microsoft’s 2025 survey, 54% of MSMEs in the Americas already actively use AI to optimize processes. However, there remains concern about the growing investment in artificial intelligence infrastructure, which poses a weakness for the competitiveness of MSMEs in Latin America. According to ECLAC, many MSMEs in Latin America lack adequate digital infrastructure, exacerbating the digital divide and reducing competitiveness. At the same time, concern about AI’s impact on employment, especially for university graduates, is expected to increase.
Final Summary for 2026 Top Ten Trends for Latin America:
As Latin America navigates an era of slow growth and global uncertainty, its MSMEs emerge as the quiet architects of renewal. The region’s future will not be shaped by size or scale, but by the ability of small businesses to weave together innovation, resilience, and entrepreneurial courage in the face of shifting markets and fragile momentum.
The path forward holds both tension and possibility: AI rising beside digital divides, sustainability becoming destiny, family enterprises standing at a generational crossroads, and new forms of talent, trade, and technology redefining competitiveness. The next chapter of Latin America’s growth will be written by MSMEs bold enough to adapt, agile enough to endure, and imaginative enough to lead.
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