Only three out of 10 companies managed to survive more than five years in Colombia - Companies

According to the study Business Survival in Colombia carried out by Confecámaras, Of the 296,896 production units created in 2017, 98,696 continued to operate in 2022.

The study that consolidates information from the country’s 57 Chambers of Commerce also indicates that in the case of company size, it was found that the 5-year survival rate of microenterprises is 33.4 percent, while that of small businesses is 60.9 percent, that of medium-sized ones of 73.7 percent and that of large ones of 85.7 percent.

In addition, companies that carry out their activity as companies have a survival rate of 44.5 percent, a higher percentage than that registered by natural persons.

So according to Confecámaras, this means that the country must work so that the companies that are constituted are corporations, given their greater capacity to remain over time.

Julián Domínguez, President of Confecámaras, said that by understanding the dynamics of business survival, familiarity can be identified are the common factors of companies that manage to survive over time.

“In this way, it is possible to achieve that companies access competitive financing, implement research and development schemes and that belong to a productive agglomeration, among other aspects, provide them with tools to compete and remain in the market. For its part, the study shows the need to strengthen public policies on issues such as access to financing sources, the development of soft skills, the formation of human capital and access to new formal markets”, said the manager.

Julián Domínguez Rivera, president of Confecámaras

Photo:

Sergio Acero Yate / Time.

For Domínguez, when comparing the survival rate of companies in Colombia with those of other latitudes, it is found that this figure is below the average of the member countries of the Organization for Economic Cooperation and Development (OECD).

Well, in the OECD, the survival of units 5 years after their creation is higher than 40 percent and in the case of countries like Belgium, France and Sweden, these figures increase at rates of more than 50 percent.

The sectors where they survive more

Photo:

Courtesy Corferias

According to the study, companies whose activity is intensive in the use of knowledge managed to have a higher survival rate.

For example, companies affiliated with the real estate activities sector have a survival rate of 51.2 percent; those of electricity, gas, steam and air conditioning of 48 percent and those of professional, scientific and technical activities of 38.4 percent.

For their part, companies that Presenting a lower survival rate are artistic, entertainment and recreation activities with 22.5 percent; household activities in quality of use 23.7 percent, and lodging and food services 27.5 percent.

companies that grow

In terms of business mobility, the study showed that of the total number of units that survived at the end of 5 years, and that were constituted as micro-enterprises, 8.5 percent changed to become small, medium or large during the analysis period.

21.2 percent of small companies became medium or large and 30.8 percent of medium-sized companies grew during the years following their creation.

85.1 percent of the units that achieved business mobility did so permanently, that is, once they became part of a higher size category, they managed to stay there.