Central America's small and medium enterprises (SMEs) employ over half of the economically active population and generate an important percentage of the region's Gross Domestic Product. However, they still confront significant obstacles to compete in national and international markets, especially before the challenges imposed by the region's growing trade liberalization.
This situation make relevant the analysis of factors which limit SMEs' competitiveness and the development of policy instruments and programs to strengthen their business capacity and productive, financial and environmental performance.
CLACDS has developed important research work about the problematic of SMES, as well as support work for small and medium enterprises and the institutions created to support this sector, through projects like "Observ@torio Pyme," and the program of formation of environmental consultants for the SME sector was developed with cooperation funds from the German government (CDG).
Also central to the work that can be undertaken to increase the competitiveness of specific industries or clusters composed in their majority by SMEs, as well as those which have a degree of foreign investment, is to make a priority the development of ties with local small and medium enterprises, as in the case undertaken by CLACDS in the area of medical devices in Costa Rica.