A study by the Organization for Economic Cooperation and Development (OECD), published in 2019, indicates that, in Argentina, Chile, Colombia, Ecuador, Mexico, Peru, and Uruguay, 99,5% of companies are SMEsIn addition, these organizations generate 60% of formal jobs, becoming important nodes of economic development in the region.

In this whole scenario, SMEs have an important challenge: grow and achieve the transformations that allow them to be more productive and competitiveIn this sense, it is essential for these organizations to plan coordinated actions that lead them to achieve their short, medium and long-term objectives.

This is where the need for a financial management strategy arises, which It is an action plan that allows organizations to maximize their profits, achieving benefits for the entire company.It also covers various investment and financing decisions that the company needs to achieve sustainable growth.

But how can organizations create an efficient plan? First, it is essential Carry out a thorough study and analysis of the environment, since it contains the main trends that enable profound transformations.. Thus, knowing how the sector, consumers and the economy act is key to formulating a strategy that takes into account the multiplicity of factors that can directly influence the business.

Added to this, a good financial strategy must be articulated to the corporateThis will make it easier for companies to set financial objectives and goals and achieve them through 360° actions that cover communication and marketing, among other aspects.

However, No strategy is complete if performance evaluation and control methods are not considered from the beginning.This is where organizations can make decisions regarding the proposed strategies and, if necessary, reevaluate them for the general good of the company.

Benefits of financial management strategies

According to the report MSMEs in Latin America: a fragile performance and new challenges for development policies, published by ECLAC in 2019, SMEs represent only 25% of the region's GDPThis means that, although they have a significant percentage in terms of the number and quantity of jobs they generate, there are still a series of challenges they must face to be more competitive.

Thus, financial management strategies not only allow for the allocation of resources, but are also an opportunity to increase the productivity of SMEs. In addition, it is important to emphasize that There is no strategy manual applicable to all companies: It is important to recognize the particularities of each company, its risk profiles, its business idea, its experience, its objectives and those trends in the environment that modify its performance.

This is why the call is for a prior analysis that allows organizations to act with the greatest efficiency. Let us remember that financial management strategies They lead companies to make better decisions regarding the investment of their resources., thus achieving a direct impact on their finances and, consequently, on the economic growth of the region.