| Sumario: | Cuenca, the third most important city in Ecuador, World heritage trust site, describes it as one of the ten best cities to live in the world. It has the highest density of production units in the country; most being small businesses. These units are microenterprises, however due to their characteristics they do not generate enough profit to become a real contributor to the regional economy. Their limited competitiveness keeps them from growing. Internal factors of its own operations such as its weak administrative management, market problems, production and financing; as well as some environmental factors like insecurity, and the political climate are factors hinder its management. This research diagnoses functional areas which will enable these firms to establish growth strategies in the short, medium and long term.
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