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The purpose of this research is to present the results of the study on knowledge management in small and medium enterprises and how they implement it. The authors on which the present investigation was based are Nonaka and Takeuchi (1995), Alavi and Leidner (2001), Alegre Vidal (2004) Leonard and Sensiper (1998), Briceño & Bernal (2010). The type of investigation of the documentary, with non-experimental and transactional design; the information was obtained through bibliographic records, for which they were consulted, books, journal articles, texts, among others. The results show that knowledge management is carried out in large companies and that there are few small and medium companies that manage knowledge and use it to generate competitive advantage. It is concluded that currently a key element for the competitiveness and growth of companies is the management of knowledge and that progress is being made in the formation of intellectual capital.