Sustainable development and decidophobia in SMEs. test

Summary

Sustainable development is an advanced topic, its definition has existed since 1987 with the Brundtland report, so it is assumed that it is of general knowledge since there are innumerable articles that speak about sustainable development in daily life and in companies, But despite this, according to INEGI, this year there are 4 million 926 thousand 61 companies in Mexico, of which according to the Visa Business Network there are only 10 thousand sustainable SMEs; in my opinion, there would be more establishments with sustainable development if there were no decophobia in the leading positions of the organizations.

Keywords: Decidophobia, sustainable development, SMEs

Introduction

Decidephobia and sustainable development are, from my point of view, two issues that should go hand in hand with each other, since a bad decision would affect the sustainability of SMEs, reflecting losses for them.

In this essay I will address the importance of sustainable development in these organizations, as well as decidophobia regarding the implementation of the SD and the alternatives that exist to develop as sustainable entities.

Approach

In order for the topic to be better understood, we will start with the definitions of Sustainable Development and Decidophobia, as well as what constitutes SMEs and we will end with the support systems for sustainable companies.

What is development?

Development, as a word, is defined in a dictionary as “Action to develop”, so if we search we will find that developing is making something grow, progress or increase through different steps or successive states; if we put this together we would have that development is the growth or progress of something by means of continuous movements or states.

What is sustainability?

According to the Royal Spanish Academy, sustainable means that it can maintain itself, as it does; maintaining means keeping something in your being, giving it vigor and permanence. So sustainability could be interpreted as the quality of conserving or maintaining something by itself.

So… What is Sustainable Development (SD)?

Colom Cañellas, AJ (1998). Sustainable development and education for development. It tells us that development refers to the socio-personal needs of a community, a qualitative concept in both the economic and the environmental and socio-cultural dimensions.

From my point of view, sustainable development is the balance between economic, social and ecological resources, without harming any one for the benefit of another, that is, not exhausting ecological resources to have a higher monetary level. Progress through the conservation of all resources.

What is decidophobia?

The word decidophobia was implemented by the thinker Walter Kaufmann who said that "the outcome of decisions depends on the qualities of the leader." But the word as such does not exist in the RAE dictionary, so we will divide the word in two to discern its meaning, phobia is fear, aversion or obsessive rejection of something and deciding is solving or making a determination about something. So decidophobia is fear of decision making.

But… Why is there decophobia?

According to Hernández López Francisco Javier. (2012, November 1). Katz and Kahn model of organization from decidophobia. Recovered from http://www.gestiopolis.com/modelo-katz-kahn-organizacion/ the cause is not the lack of reason but the lack of resolution and courage to lose fear; to make our own decisions and thus no longer fall into this approach of decidophobia.

But I consider that decidophobia is not only found by the lack of courage, but also by the lack of information and knowledge, which cause uncertainty about what can happen if things do not work.

According to typesdephobias.com generally the person who suffers from this phobia is characterized by a lack of will or courage that makes it impossible for him to have the will to sort through the different parts to find a truth. These people generally move away from the decision and relegate it to an authority figure, (…). Thus, the decico-phobic renounces the authority he has to decide on some truth, and then he will accept everything his authority figure argues him.

So if in SMEs the highest-ranking person does not have the power to decide, no one else can make the decision to be an organization with sustainable development.

And… How can decidophobia be treated?

Tipodefobias.com tells us that the treatment is similar to that of other phobias, that is, cognitive therapy is used, which focuses on reassignment and strengthening the decision process. Sometimes medication may be prescribed to reduce stress levels and directly treat tension.

Decision-making errors

There are many ways to make decisions and on many occasions people wrongly decide, Dr. Hossein Arsham in his article “Fear of making important decisions How to avoid making important decisions” recovered from: http: //www.revistainterforum.com / espanol / articulos / 041502artprin.html describes some of the ways to avoid making decisions, so I will mention only those that influence companies:

Inability to reflect on the problem: Some managers sometimes balk at reflecting before acting, because reflection takes too much time, too much work, and they don't know too much about the problem / decision opportunity. Being too cautious: Being overly curious for so long as to delay the decision. Bad problem definition: This surely leads to the wrong solution. When the problem is not known, any solution is wrong. When the problem is known, the solution could be the correct one. Bad understanding of the problem: This occurs, among other things, by subjectivity, irrational analysis, delay or delay, lack of sensitivity and lack of focus. Complexity confuses the decision-maker:Simplify and even modify the problem to make it something you have a strategic solution for (this is done by IO / CA analysts when they modify the model until it fits their strategic solution algorithm.) Information: The information collected is not valid. Decisions are usually made first, and then information is sought to support the solution, otherwise much of the information collected is irrelevant to decision-making.otherwise it happens that much of the information collected is irrelevant for decision-making.otherwise it happens that much of the information collected is irrelevant for decision-making.

Decision making comprises a series of steps. The process begins with goal setting and continues with identifying problems and alternative courses of action. It does not end until the decision is effectively made or the choice is made, or until post-decision anxieties have been experienced. Decision-making, however, is an important management function at all points in the administration process. ”

What are SMEs?

Its acronym stands for P MALL and M edianas E ompany S, but what constitutes small and medium-sized companies? According to Wikipedia, they are companies with distinctive characteristics, and they have dimensions with certain occupational and financial limits fixed by the States or regions (…) Small and medium-sized companies are independent entities, with a high predominance in the commerce market, being practically excluded of the industrial market due to the large investments required and due to the limitations imposed by the legislation regarding the volume of business and personnel, which, if surpassed, convert, by law, a small company into a medium-sized company. In Mexico, a small company becomes a medium-sized company if it exceeds 50 employees (industry or services) or 30 (commerce) and becomes a large company if it exceeds 250 (industry) or 100 (commerce or services).

SMEs and Sustainable Development

According to the page pymempresario.com in its publication "Sustainable development in Mexico is a priority according to businessmen" the KPMG in Mexico developed the secondSurvey of Sustainable Development in Mexico 2.0 2011, from which it is highlighted that at least 95% of the Senior Management of the country increasingly considers the growing value that Sustainable or Sustainable Development has in the strategy of companies (…) Despite If considered critical, there is a relevant gap between what is important and what is urgent, since only 20% of respondents include the concept of sustainability in strategic planning and performance indicators in their company. It is also relevant to note that of those companies that do so, 65% do it partially considering only one aspect, be it economic, environmental or social, but not comprehensively.

From my perspective, this is a clear reflection that very few companies decide to include sustainability and what is worse, those that include it are not applying it correctly, due to these incomplete experiences and precarious balances, many companies are going bankrupt., causing the rest to hesitate when deciding on sustainability.

For Jesús González, Partner of the KPMG Sustainability Practice in Mexico, it is crucial that companies of all sizes understand the need to extend the business vision in the medium and long term, incorporating the concept of sustainability in the business strategy. (…) It is important to highlight that Sustainable Development is not only about philanthropy, but also the integral analysis of the organization's performance under three pillars: the economic one, relative to the need for the company to be profitable to last over time; the social one, which attends to both external and internal impacts of this nature that the company's operations may have; and the environmental one, which takes care of the impact that the operation of the company could have on the environment and natural resources.(…) It can be seen that large organizations in Mexico have started efforts on the subject, however, the highest percentage of organizations, collaborators and even citizens, do not have sufficient culture in this concept.

To include sustainable development in small and medium-sized companies, I think it is important that senior managers (owners, managers, managers) know the opportunities that an organization has when focusing on sustainable development:

Saving energy resources Increased company reputation Increased number of customers by improving reputation Increased efficiency Balance of human, physical and ecological capital High corporate mortality, that is, the durability of the company is greater

Systems with support strategies for sustainable companies

There are some systems that support companies that want to focus on sustainability or even start a sustainable business, for greater ease I will divide them into public and private media:

Public media

National Institute of the Entrepreneur (INADEM): the National Fund of the Entrepreneur, is a Fund that aims to encourage national, regional and sectoral economic growth, by promoting productivity and innovation in micro, small and medium-sized companies located in sectors strategic, to promote the orderly, planned and systematic strengthening of entrepreneurship and business development throughout the national territory, as well as the consolidation of an innovative, dynamic and competitive economy.SEMARNAT: With the program of subsidies to civil society organizations, through the granting of subsidies to Civil Society Organizations, to carry out sustainable productive projects, with a gender perspective and differentiated attention to indigenous peoples. SME Fund of the Ministry of Economy:The Support Fund for Micro, Small and Medium-sized Enterprises (SME FUND) is an instrument that seeks to support companies, particularly smaller ones and entrepreneurs, with the purpose of promoting national economic development, through the granting of Temporary support for programs and projects that promote the creation, development, viability, productivity, competitiveness and sustainability of micro, small and medium-sized enterprises. CONACYT / NAFIN Entrepreneurs Fund: is an association with two organizations (CONACYT, public and NAFIN, private) that supports technological, financial and legal advice to strengthen the competitive position of companies based on the application of scientific / technological knowledge.Small and Medium Enterprises (SME FUND) is an instrument that seeks to support companies, particularly smaller ones and entrepreneurs, with the purpose of promoting national economic development, through the granting of temporary support to programs and projects. that promote the creation, development, viability, productivity, competitiveness and sustainability of micro, small and medium-sized enterprises. CONACYT / NAFIN Entrepreneurs Fund: is an association with two organizations (CONACYT, public and NAFIN, private) that it supports with technological advice, financial and legal to strengthen the competitive position of companies based on the application of scientific / technological knowledge.Small and Medium Enterprises (SME FUND) is an instrument that seeks to support companies, particularly smaller ones and entrepreneurs, with the purpose of promoting national economic development, through the granting of temporary support to programs and projects. that promote the creation, development, viability, productivity, competitiveness and sustainability of micro, small and medium-sized enterprises. CONACYT / NAFIN Entrepreneurs Fund: is an association with two organizations (CONACYT, public and NAFIN, private) that it supports with technological advice, financial and legal to strengthen the competitive position of companies based on the application of scientific / technological knowledge.through the granting of temporary support to programs and projects that promote the creation, development, viability, productivity, competitiveness and sustainability of micro, small and medium-sized enterprises. CONACYT / NAFIN Entrepreneurs Fund: is an association with two organizations (CONACYT, public and NAFIN, private) that supports with technological, financial and legal advice to strengthen the competitive position of companies based on the application of scientific / technological knowledge.through the granting of temporary support to programs and projects that promote the creation, development, viability, productivity, competitiveness and sustainability of micro, small and medium-sized enterprises. CONACYT / NAFIN Entrepreneurs Fund: is an association with two organizations (CONACYT, public and NAFIN, private) that supports with technological, financial and legal advice to strengthen the competitive position of companies based on the application of scientific / technological knowledge.private) that supports with technological, financial and legal advice to strengthen the competitive position of companies based on the application of scientific / technological knowledge.private) that supports with technological, financial and legal advice to strengthen the competitive position of companies based on the application of scientific / technological knowledge.

Private media

Grupo ECOS: invests in companies and sustainable development projects in Latin America, where simply by entering the grupoecos.com page they will find the financing section (applying for financing) and it will only be necessary to write the company details and a short description of the project, as well as the reason why additional investments are being sought, so that the ECOS group decides accordingly to invest or not in project.org: it is an impact investment fund focused on supporting the initial growth of social and environmental companies in Mexico, through financing and pre and post-investment technical assistance to ensure long-term success (investing between $ 100,000 and $ 3,000,000). Business Incubator at the Tecnológico de Monterrey: Boosts entrepreneurs as agents of change;structuring, positioning and scaling your projects, to generate a social and economic impact. That encourages its entrepreneurs to develop intellectual property through self-sustainable practices. Feher & Feher: It is a consultancy that offers comprehensive solutions to Entrepreneurs, Businesses and Franchises in a specialized way. They seek to understand and grow their business through a team of professionals and specialists who stand out for their human warmth. Recognized as a Business Accelerator and High Impact Incubator throughout the country by the Secretary of Economy through the National Institute of the Entrepreneur. Socially responsible company GreenMomentum, Inc., an organization founded by Cleantech Challenge México (CTCM): according to mundoejecutive.com.mx,The CTCM is one of the green business competitions that for five years has provided consulting and financing to green clean technology projects aimed at reducing greenhouse gas (GHG) emissions in our country. The Inter-American Development Bank (IDB) and the National Bank of Mexico (Banamex) presented the "Sustainable Business Credit": any company registered with the Ministry of Finance and Public Credit (SHCP) will be able to request this financial product, with which it is sought that SMEs have savings in the consumption of energy and be more competitive. ($ 30,000 to 12,000,000 pesos)The Inter-American Development Bank (IDB) and the National Bank of Mexico (Banamex) presented the "Sustainable Business Credit": any company registered with the Ministry of Finance and Public Credit (SHCP) may request this financial product, with which it is sought SMEs have savings in energy consumption and are more competitive. ($ 30,000 to 12,000,000 pesos)The Inter-American Development Bank (IDB) and the National Bank of Mexico (Banamex) presented the "Sustainable Business Credit": any company registered with the Ministry of Finance and Public Credit (SHCP) may request this financial product, with which it is sought SMEs have savings in energy consumption and are more competitive. ($ 30,000 to 12,000,000 pesos)

Consequently, there are at least ten systems that can support strategies and funds for companies with sustainable development, making it easier for SMEs to decide to adopt the SD.

Conclusions

An SME can be successful by being sustainable, there are at least ten support systems for organizations and projects with a sustainable approach in Mexico, all of them provide information and guidance for those who are interested, and most of them invest at least $ 30,000.00, so the economic aspect is not a problem to decide to accept the sustainable development approach.

The important thing is that the top managers of these companies learn about the benefits, analyze and reflect on the reasons why the changes are necessary, understand that focusing on sustainable development is not a waste of time, money and effort and dare to take the decision to adopt sustainability.

As Jesús González, Partner of the KPMG Sustainability Practice in Mexico says: “We can conclude that the concept of Sustainable Development is in a complex evolutionary process. Many still identify it with Social Responsibility and philanthropy only; others have transferred it solely to marketing, with a short-term vision. Few really know its scope, and a few have managed to translate critical issues into constant monitoring and action. Likewise, it is important to accept that the issue is not limited to public or large companies but to small and medium-sized companies that operate in a dynamic and changing business, where sustainability also includes new challenges and opportunities ”.