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This paper describes the performance of small and medium-sized manufacturing enterprises (SMEs) in 10 Latin American countries under the New Economic Model (NEM). Based on an original databank, the authors analyze SME performance in relation to production, employment and productivity, and in comparison to larger enterprises. The paper shows that SMEs have not been marginal players under the NEM; they did not experience a generalized drop in production and employment, and, in some countries, even increased their productivity relative to that of larger firms. Macroeconomic conditions have been the main determinants of SME performance; trade liberalization had a strong impact on sectoral restructuring within SME production, but did not affect negatively SMEs as a whole.