FACTORS AFFECTING THE SURVIVAL OF MICRO BUSINESSES IN ARGENTINA

Microbusinesses play a crucial role in Argentina’s economy, providing employment and supporting local development. However, their growth and sustainability are constrained by persistent challenges, including inflation, restricted access to affordable credit, and economic volatility. This collaborative study between UBA, ITBA, and MIT LIFT Lab analyzes these factors through survey data, exploring relationships between sales, inventory, pricing, labor dynamics, and external constraints. Findings reveal that high inflation and limited credit access are key barriers, particularly affecting inventory management and sales. The study concludes with actionable policy recommendations to address these challenges and suggests areas for future research, emphasizing the need for more robust datasets and longitudinal studies.