Small food industries operate within a web of macroeconomic, microeconomic, social and technical forces that determine competitiveness within the sector. This bulletin proposes to utilize the systems approach to establish the analytical context for all factors affecting food quality and safety, and hence food industry competitiveness, and identify the engineering variables intrinsic to the food industries and their environment and which, once improved, will make the sector more competitive. The document presents a conceptual methodological proposal whereby any strategy based on the above approach will make it possible to identify and address the priority needs of the small and medium food industries sector in Latin America and the Caribbean region and to respond efficiently and effectively to those needs through sound action. The ideas proposed in this bulletin address, from the food engineering and technology perspective, the complex issues faced by small food industries in today"s markets, where high quality and safe foods are demanded by consumers, and all businesses, no matter how big or small, must be competitive to survive and succeed. (Also published in Spanish)