Venezuelan small businesses and the economic crisis: reflections from Europe

Abstract

Examines the general macroeconomic crisis of the Venezuelan economy outlining its recent history and the seriousness of the present situation and points out how this crisis is especially serious for small firms. Presents information on the current state of small firms in Venezuela ‐ their importance in the economy and the current policy towards them. Points to the historical strategy of running the Venezuelan economy with the emphasis being on large state organizations, and emphasizes the neglect of a coherent and consistent policy for small firms, especially those in the informal sector. By way of contrast, looks at SMEs in the EU, their role in the economy and policy towards them. Finally reflects on some similarities between the EU and Venezuelan small firms. Emphasizes that the EU policy orientation towards the creation of a fairer competitive environment within which SMEs can flourish has much to offer Venezuela (and other less developed countries) which wish to develop more favourable internal conditions for small firm development.