The efficiency of financial and technical support to small and medium enterprises in South Korea contrasts with the failure of those in Mexico.

The economic growth observed in South Korea emphasizes the need to learn the Korean model. “South Korea is a part, with Hong Kong, Taiwan and Singapore, the group of four Asian economies (the “Four Tigers or four dragons “) who experienced rapid economic growth in the sixties and the nineties, and there was talk of Korean miracle”(Marchini, 2006, Taylor and Kings: 137).

SMEs in South Korea

This at first sight surprising and certainly significant growth of the Asian Tigers has been possible largely due to a mixed nature of economic policies, Implemented by strong state apparatus and leaders with vision for the future.

sme_s

In this sense, one of the many economic policy strategies applied by the Korean state in recent years has been the strengthening and promotion, in its operations, an important and large contingent of Small and Medium Enterprises aimed at the commissary and production efficiency to large chaebols (Clusters) that support the economic power of that Asian nation.

Korean policies for SMEs

The first impulse of the Korean state to Small and Medium Enterprises ago was nearly fifty years, the results are obvious to all. Through a rigid fiscal policy and packages economic stabilization, Who knew how to break at the right time with the scheme import substitution prevailing until the early sixties, South Korea went from being one of the last economies in the world to occupy at present the eleventh step on the size of its production, and raising standards of quality of life of their society.

The last few years

The industry in South Korea has undergone profound transformations over the past few years, just as the industry in Mexico. These changes have been mixed, including those that go from the same organization of production to changes in cultural patterns of entrepreneurs who run them.

Comparison between Mexico and South Korea

South Korea and Mexico are countries with very different paths in the years before the first decade of the century, not only in the performance of their macroeconomic indicators But as expressions of a cluster and social worldview very particular. In 1970, Mexico was still in a position higher than South Korea in terms of productivity and competitiveness. Slightly higher.

In ten years the situation reversed dramatically, as reflected in National Accounts Partly due to the strong resentment of the Mexican economy to international prices of raw materials and the inefficiency of the Mexican state apparatus, but especially by the extraordinary rise Korean. Growth based on the fundamentals of flexible specialization production that has learned to its neighbor Japan, Mexico practice that arrived late and wanted to implement, very faintly, from six years of Carlos Salinas .

Mexican economic stagnation

Mexico today is a nation divided structurally. The long wait for takeoff socioeconomic, sheltered first by a paternalistic and corporatist state that was lost in a morass of bureaucratic ineptitude and cronyism with the oligarchy, and then a fervent believer technocratic elite neoliberalism more exacerbated.

State of SMEs in Mexico

During the administration of Vicente Fox and before that from Ernesto , Programs were launched to support small and medium enterprises nationwide, with schemes funding from public sources. Ten years have passed and indeed the participation of small and medium enterprises in the country’s gross domestic product is significant, but yet still does not generate more wealth than the largest companies and does not constitute an important part of our nation’s foreign trade, not Although the logic of our inclusion in free trade, should facilitate this.

Quite the contrary, the evidence shows that SMEs in Mexico is becoming less productive and populous. Furthermore, it has stuck in traditional production processes and not due to the international standard, whereby the generation of high technological products is a practice that would be most useful in production. It is in this context that SMEs in Mexico, at the beginning of XXI century are barely surviving with serious financial difficulties, archaic distribution networks and low productive capacity.