Business Resilience of MSMEs in Honduras: Challenges and Opportunities

Abstract

The Covid-19 pandemic has put unprecedented pressure on business resilience, as it has once again put companies, highlighting the importance of agilely adapting to operational and technological changes such as accelerated digitalization, and remote work. This article examines how companies, especially micro, small and medium enterprises (MSMEs) have faced post-pandemic challenges in Honduras, a country of constant economic and social challenges. Despite the fall in the Gross Domestic Product (GDP) in the first years of the pandemic, the MSME sector has been fundamental in the recovery of the economy, contributing a considerable percentage to the country's GDP.  However, the formalization and structuring of companies in this sector continues to be a challenge despite the response of the State and the support of international organizations, which has been crucial, with initiatives that include financial support and measures to strengthen the banking system and promote financial inclusion.  The study identifies the importance of preparation and strengthening of capacities in the management of MSMEs, essential for Honduras to move towards economic recovery; Furthermore, the analysis highlights the need for policies and strategies that strengthen business resilience and promote sustainable growth in Honduras and other emerging economies.