The SME sector faces new challenges to its policies and programs as a result of globalization, regional integration, the revolution of information and communications technology, and government reform and modernization—added to the problems of competition, poverty and distribution of wealth that affect the region. It is essential to redefine and adjust the SME development goals and policies in light of the specific problems found in each country or region. The institutions that promote and regulate economic activity should coordinate their actions to prevent them from adversely affecting enterprises of different sizes. It is essential to improve the SME operating environment. Improvements include streamlining bureaucratic norms and regulations, and incorporating new themes in the work agenda such as the functioning of the justice system and property rights. An adequate framework of economic and cultural incentives should be defined so that the rates of business creation and growth in Latin American and Caribbean countries are similar to these rates in more developed regions. Finally, one of the most important challenges to the SME sector is to continue developing information systems and databases that allow better project monitoring and evaluation of results.
5 Future Challenges