Limits to the Productivity in Biobased Territorial SMEs

Abstract

In Latin América there are large exporting companies intensive in natural resources which do not connect with the SMEs in the territories. The aim of this study is to provide elements that explain the limits to the productivity of small and medium enterprises located in bio-based territories, providing inputs for a public policy that enhances local development. The case of sawmills located in the Province of Arauco, Bío-Bío Region, Chile, is studied. The results of a survey applied to 42 companies are analyzed, in the context of an initiative financed by the Regional Government of Biobío, which represent 84% of the total sawmills in the Province of Arauco. Different data science algorithms are used to generate clusters and decision trees. Based on the results, a heterogeneity within the group of companies is verified from the perception of the main problems, the processes that are internalized, the number of sectors it sells to and the cost of raw materials. Public policies recommendations are presented aimed at building support networks, improving quality standards through certifications, attracting, and retaining qualified human capital and promoting collaborative design among companies.