Colombian modest and medium-sized enterprises (SMEs) experienced a significant downturn in performance during the fourth quarter of 2025, according to a recent survey by the Colombian Association of Micro, Small and Medium-Sized Enterprises (Acopi). The findings paint a concerning picture of the country’s business landscape, suggesting broader economic challenges beyond headline growth figures.
Data from the association revealed that 47.3% of businesses reported a decline in production levels last year, even as sales fell for 50.4%. Investment also contracted, with 53.3% of companies reducing their investment levels – a reversal from 2024 and an indication of weakening business momentum.
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Despite Colombia’s overall economic growth of 2.3% during the same period, the expansion was largely concentrated in the service sector. Key productive sectors, including manufacturing and construction, experienced contractions, highlighting a growth pattern with limited impact on the country’s productive base.
Consumer Spending Fueled by Debt, Posing Risks to Households
The report also flagged concerns about domestic demand being sustained by increasing household debt. Consumer spending has risen primarily due to credit expansion, which has surpassed a 30% increase. Projections from the Superfinanciera indicate that consumer credit could reach approximately $116 billion USD in 2026.
Acopi warned that this trend suggests spending isn’t driven by genuine income improvements but rather by increased borrowing. This reliance on credit raises questions about the long-term sustainability of consumer demand.
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“In a context of high interest rates, this increases the financial burden on families and poses risks to the sustainability of consumption in the medium term,” the association noted.
Declining Investment: A Source of Business Concern
Gross capital formation also fell by 9.3%, confirming the concerns expressed by business leaders. High interest rates and political uncertainty – cited by 50.7% of respondents as a key factor in their decisions – are significantly impacting investment levels.
This reduction, according to Acopi, jeopardizes future growth potential by limiting business expansion and job creation, both crucial for sustainable economic development.
Limited Export Growth: Challenges for SMEs
While national exports experienced a slight increase of 1.3% in 2025, only 9.3% of companies reported higher sales abroad. This suggests that the benefits of export growth are not widely distributed among Colombian businesses.
Acopi indicated that most SMEs continue to face obstacles such as a lack of certifications, limited commercial relationships, and a shortage of exportable products, hindering their participation in international markets.
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Structural Factors: Insecurity and Corruption Impact Competitiveness
Call for Strategic Policy Agenda
The National SME Observatory has called for a policy agenda prioritizing fiscal, labor, territorial tax, business promotion, and energy security policies. The call for action underscores the need for a comprehensive approach to address the challenges facing Colombian SMEs.
“Colombia needs not only to grow more, but to grow better: with greater investment, a strengthened productive sector, and businesses connected to global markets,” the organization concluded.
