The central theme of this work refers to the study of financing strategies for bakery microenterprises in the Barinas municipality. Descriptive research is applied methodologically. The way in which the bakery entrepreneurs run their production units is studied, that is, the way in which they manage to finance the operations of their microenterprises is determined. Once the situation is diagnosed, a global financing strategies model is presented, whose application guarantees the success of the company.
FLEITAS, José de la Cruz. "Financing Strategies for Baking Micro-enterprises: Case of the Barinas Municipality ". Research work to apply for the Master's Degree in Business Management, Finance Mention.
financing-strategies-for-the-micro-enterprises-bakers-case-municipality-barinasTo collect the information, from the universe of bakeries established in the urban area of the Barinas municipality, for 1994, a sample of twenty (20) establishments was selected. The results obtained were analyzed with the help of the statistical package for the Social Sciences (SPSS).
It was concluded that the most used sources of financing by the baker microentrepreneurs is commercial, which does not generate any cost, followed by short-term bank credit and reinvestment of profits; the financial market of the Barinas municipality includes both private and public institutes; it is a priority to stimulate and promote the participation of the entities that are involved with the sector in order to constitute an institutional infrastructure that allows comprehensive assistance to microentrepreneurs; In this regard, a simple methodology for managing investments and an institutional infrastructure model are presented.
INTRODUCTION
The purpose of this research is to analyze and adapt the basic principles and techniques of the Scientific Administration that are applicable, as well as the experience in Strategic Management that some successful entrepreneurs have used, in micro-enterprises, as a way of coping with the new environment that the environment presents us, full of risks and uncertainties, economically, socially and politically, which requires an emerging management style that guarantees their survival. The research is descriptive in nature, achieving through it the gathering of information on basic principles and techniques, and an examination of the experiences of both other countries and Venezuela.closely following reality itself in order to identify the success factors within the sample group studied and the factors that may shed some light on the reasons why some micro-companies in the sector have had to close their doors.
Microenterprise plays an important role in the economic growth of the area and even more, when the rules of the game have been modified in business, where the current environment requires agile, innovative companies that maintain close contact with the client, Whoever cares with all their demands, reacts quickly, and adjusts to changes easily and promptly.
The work is divided into seven chapters:
Chapter I. Problem Statement: Includes the formulation of the problem, its identification, importance and justification, scope and limitations, as well as the general objective and specific objectives.
Chapter II. Theoretical Framework: This chapter describes the historical background that has shaped the scenario within which Venezuelan companies move and the different stages of industrial development through which the country has passed. The different theoretical bases on which this work is based are presented. Likewise, a definition on Microenterprise is presented that will serve as an element for future studies in this regard, indicating its characteristics, its possibilities and the different steps that are followed for its creation.
The most used financing sources in Venezuela are defined, the financing structure and profitability, a model is presented for microentrepreneurs to apply before making an investment.
Chapter III. Methodology: Includes the hypothesis formulated, identification of the variables and the definition of the corresponding indicators, the research design, population, sample, data collection technique, collection of information and instrument to be used, and data processing through the SSPS system. The information is complemented by presenting the survey model in all its parts applied to the selected sample.
Chapter IV : Presentation and Analysis of Results: Refers to the presentation and analysis of the results obtained in the research, related to the different items to be investigated, as well as an assessment of the different public and private institutions tending to the creation and consolidation of the micro-business economy. The hypothesis is checked and analyzed.
From the analysis of the results, a series of conclusions and recommendations are made in order for them to be taken into consideration by the sector, and a model of institutional infrastructure is presented in order to be applied by microentrepreneurs and the institutions that have served financial support and advice for the Barinesan microenterprise.
This project was motivated by a faith in the benefits of microenterprise, since the author considers that it is the fundamental basis for developing any region, it is a quite feasible alternative.
CHAPTER I
A. PRESENTATION OF THE PROBLEM
By changing the rules of the game in business, the influence of the globalization process, the game of supply and demand, the criteria of competitiveness, macroeconomic policies, regulation, the political environment, market failures and any other element that affect them, the entrepreneurial qualities of small companies are enhanced. The companies that are successful today, are due to the fact that they are agile, innovative, maintain close contact with the customer and react quickly to the market, and these are some of the main characteristics that micro-enterprises have; while on the other hand, there are large companies with a sense of bureaucracy and centralism, which respond slowly to changes;adding to this situation the management style they profess in the field of finance, specifically the financing of their operations, which until now has been traumatic and almost an impossible mission for small companies, due to not having sufficient guarantees, a requirement that they demand the financial entities when granting a credit, with which large companies do.
The concept of a large company only remains for some sectors such as automotive, petrochemical and communications, which can produce on large scales. However, the rapid pace of technological advance and market segmentation is destroying the concept and the possibility of continuing to form large companies.
As Byrne (1994) puts it, some management analysts now speak of diseconomy of scale when referring to the lack of sensitivity, stagnation and high costs generated by bureaucracy. As industrial monsters try to adjust to new competitive realities, smaller and newer companies have taken on the role of change agents in the world's economies.
While there is some disagreement about the accuracy of the numbers, most observers agree that small entrepreneurs are generating more jobs and innovations than large companies. In the United States, small and medium-sized businesses created all of the 5.8 million new jobs that emerged between 1987 and 1992, a period in which firms with 500 or more workers recorded a net loss of 2.3 million jobs, according to estimates by Research firm Cognetics Inc., based in Cambridge, Massachusetts. By 1994, it was estimated that small businesses came to generate 1.7 million new jobs, while those with 25,000 or more workers would reduce their workforce by 300,000 jobs. Also, despite the fact that resources are more limited,A recent published study shows that smaller companies produce 24 times more innovations than large firms.(Ibiden, 1994).
As explained by John F. Welch Jr., president of General Electric Co .: ” In today's fiercely competitive world market, size is no longer the trump card it used to be. We are facing a market that is not impressed with logos and sales numbers, but instead demands value and performance. ” His goal at the helm of General Electric, a $ 60 billion company is: "Reach the soul of the small company, and its speed, within our giant corporate body."
For 150 years, Marxist dogma predicted that the first step on the road to proletarian revolution would be the destruction of small businesses by their biggest competitors. Currently, one of the last disciples of communism, Fidel Castro, has a very different point of view, of the situation. It is starting 100 shops and services, ranging from computer programming to beauty salons, for private entrepreneurs. Castro, it seems, is betting that small businesses will be able to get him out of the rubble of his isolated economy. In his plan, he is pushing Cuba to the center of one of the most heated debates today: Do small companies have the key to growth? Can an economy develop its full potential without the stimulus and innovation of its entrepreneurs?(Gleckman, 1994).
The theme is key throughout the globe. In Eastern Europe, small businesses are struggling to determine their role within emerging capitalist economies. China is trying to resolve the paradox of unleashing the entrepreneurial spirit of its people while crushing democracy. Latin American Nations are trying to adapt the company to their quasi-feudal economies. In the United States, economists debate the number of jobs small businesses create, while politicians squabble over whether or not to give these companies special incentives. From World War II to the early 1980s the creed was: "The bigger the better." All economists from Adam Smith to Karl Marx have highlighted the power of size. (Ibiden, 1994)
According to Corpoindustria in its annual report for the year 1992, “… the Small and Medium Enterprise (SME) sector had a 10% drop in the Gross Domestic Product (GDP), and eliminated 49 thousand jobs in a universe of 1057 small establishments due to two fundamental causes: not being able to face their debts and not having how to improve their comparative capacity and that, in addition, 38 public organizations spend 98 billion bolivars annually to finance the sector, but without positive results. ” (El Nacional, 1992) .Over the years, organizations, corporations, foundations, funds, both public - which have been the majority - and private, have been created and will continue to be created, aimed at supporting small and medium-sized companies or industries; Congresses, symposiums, conferences, annual assemblies of the different unions, declarations and communiqués have been held and will continue to be held, and the results remain the same and are increasingly serious.
In Venezuela, as can be seen in Table No. 1, small and medium-sized industry constitutes a key sector for the country's comprehensive development, according to the industrial survey of the Central Bureau of Statistics and Informatics (OCEI) for 1992, they registered 10,539 industrial establishments, of which 90.8% had between 5 and 100 employed persons. According to this, small companies represented 66% of the Venezuelan industrial park, medium 24% and large 9.3%, it would be necessary to add a very high number, but not determined, of artisans and micro-companies with less than 5 workers….
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