The Argentine economy not only shows signs of recession, but is beginning to evidence a dangerous financial fragility that hits SMEs hard. According to a survey by the SME Observatory, six out of ten small and medium-sized industrial companies have problems collecting what they sell. Just a year ago, that figure was 35%. In twelve months, the proportion of firms affected by payment delays has practically doubled.
The data is alarming because it reveals that the problem is no longer just selling less —although 83% of companies reported a drop in sales, an all-time high— but that even when they manage to place their production, the money does not arrive. The crisis is shifting toward the payment chain, and that has direct consequences on the working capital of SMEs, which typically have less access to credit and less financial backing than large companies.
A report from the Association of National Entrepreneurs for Argentine Development (ENAC) warned that 7 out of 10 firms reported unilateral extension of payment terms by their clients, more than half suffered greater defaults, and almost 3 out of 10 recorded bad debts. The survey, which covered more than 250 companies nationwide, indicated that almost 4 out of 10 collect in more than 60 days, while the average payment term to suppliers is 30 days. This means that SMEs finance their clients with their own capital for almost two months, worsening their liquidity and putting their operational continuity at risk.
SME industrial production already contracted 9.2% year-on-year in the first quarter of the year, and the number of employed persons accumulated 13 quarters of contraction. Revenue decreased for 57% of firms and profitability worsened for 7 out of 10, in a context of costs that increased above the selling price, especially energy costs.
But there is one data point that sets off all alarms: among the few companies that managed to increase their sales, the best performance corresponded to imported products. While 24% of firms that market imported goods registered increases, that proportion was 10 percentage points lower among those selling domestic products. Concern about competition from imports doubled in just one year, going from 25% to 46% of surveyed companies. The report found that some firms are ceasing production to focus on marketing foreign products, incentivized by an economic model that seems to punish domestic production.
59% of SMEs demanded measures against unfair competition, a demand that three quarters ago hovered around 40%. The situation is critical: the economy not only does not grow, but money stops circulating. When six out of ten SMEs have difficulty collecting, the problem is no longer how much is sold, but whether the productive system can stay afloat.
Para mí estos dueños de PyME se hacen los sorprendidos pero bancaron el modelo de mierda de la renta financiera y el dólar. Ahora lloran porque no les pagan? Bien merecido, son cómplices del ajuste. La cadena de pagos se rompe porque los de arriba no sueltan un mango mientras se llenan los bolsillos con especulación. Patrones explotadores del carajo, no se merecen ni una lágrima.
para mi estos kukas de mierda arruinaron todo 60% no cobra? y q esperaban con los planeros viviendo del estado dejen de llorar pymes ponganse a laburar viva la libertad carajo el gobierno actual es lo unico q nos salva