early 1970s, yet much of the better quality leather continued to be exported in bulk. In terms of intemational competitiveness, the Colombian hides/leatherleaather goods industry appears to be at a critical juncture. Up to this point it has managed to penetrate export markets on the basis of trial and error, luck, and a lot of entrepreneurial spirit.

The industry now confronts important opportunities which, in the judgment of Salmon Associates (1990, 129), in a study carried out as part of the World Bank's Colombian Industrial Restructuring and Development Proect, can be taken advantage of only through a decided government effort at restructuring and development. The level of opportunity is high because of the considerable installed capacity, the experience acquired in the last few years, and the state of the international market. Colombia is considered more competitive in leather goods production than in hides or leather. US importers consider Colombia the best producer of leather goods in the region, at an intermediate level of price and quality between that of Europe and the Far East. They tend to blame delivery problems on the transportation system that Colombians have to use, while they are generally impressed with the producers' desire to export and their ability to produce the styles required in the U.S. market at competitive prices (Salmon Associates, 1990, 193).

A total of 34 firms were interviewed for this study, 28 in Bogota, 3 in Medellin and 3 in Bucarainanga. Their main products are briefcases, wallets, ladies' handbags, luggage, and a few other items. Some produce shoes as well, but the survey excluded any fmn that specialized in shoes. The surveyed finns sell an average of 55 percent of their output abroad directly (close to the 51 percent reported in the 1990 industrial survey). Eighteen (or 53 percent) of the firms exported 70 percent or more of their output directly, and eight exported essentially all of their output (95 percent or more). Many of the younger firms were founded with the express purpose of exporting-, of those founded in 1988 or later, only one delayed as long as two years before exporting<sup>4</sup> , and six of 11 exported at least 70 percent of output, probably reaching this level much faster than their predecessors.

The oldest three finns date from the 1940s and a total of five predate the 1970s, only two of which have over 50 workers at present. Six date from the 1970s, 16 from the 1980s, and seven from the 1990s. Size at start-up has been small, averaging just 7.4 workers. Nearly two-thirds of the firms began operations

> **4 15is** conclusion cannot be derived from the statistics alone, since a criterion for entering the sample was having participated in intemational markets; young firms which had not done so would thus not appear in the sample. But discussions with interviewees, together with the ease of finding young firms already exporting, sugges **t** hat there has been a change. One intriguing feature of these recently founded firms is that many reported exporting first in the year after founding, rather than in the same year. It may be that in many cases the year of founding in the legal sense precedes production by 6-12 months.

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