Adaptation and challenges of MSMEs in Pasto in the face of COVID-19

Maura Alexandra Narváez Costain, Cristhian Camilo Vallejo Lopez, Jonattan Alexis Zambrano Estrada and Claudia Magali Solarte Solarte

Management (Montevideo), 2023, vol. 1, 50

Abstract: Introduction: the COVID-19 pandemic represented a turning point for micro, small and medium-sized enterprises (MSMEs) in Pasto, Nariño. These productive units, which are fundamental to the local economy, faced great difficulties after the arrival of the health emergency. Their vulnerability became evident due to low technological preparedness, low capacity to respond to crises and limited financial structure. Development: during the crisis, many Pashtun MSMEs suffered from closures, reduced sales and difficulties in sustaining employment. Despite national and local initiatives such as subsidies, credits, and training led by the government and the Pasto Chamber of Commerce, many entrepreneurs encountered obstacles in accessing such support, such as technological ignorance and resistance to change. However, other companies took advantage of these tools to implement teleworking, online sales and new digital strategies, managing to stay active. Studies prior to the pandemic already warned about the lack of modernisation and deficiencies in business management, problems that intensified in the context of COVID-19. Conclusions: MSMEs proved to be both fragile and resilient. While many did not withstand the impact, others reinvented themselves and strengthened their digital presence. The study concluded that the future of these enterprises depends on their ability to adapt, access finance and digital literacy. It is imperative that public policies continue to support their transformation, to ensure their role as an engine of economic recovery in Colombia.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:dbk:manage:v:1:y:2023:i::p:50:id:1062486agma202350

DOI: 10.62486/agma202350

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