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Effective business management and continuous improvement of MSMEs in the commerce sector in Lima

Anonim

IV. PROJECT DESCRIPTION

In this work, the problem has been identified in the lack of continuous improvement of micro and small companies (MYPES) ​​in the commercial sector of Metropolitan Lima; And the proposed solution is through effective business management.

4.1. BIBLIOGRAPHIC BACKGROUND

Ángeles Macedo, Floriana Viviana (2005) Thesis: "Financial analysis and its impact on MYPES decisions". Presented to opt for the Master's Degree in Finance at the Federico Villarreal National University. The author analyzes, synthesizes and interprets how the analysis of liquidity, management, solvency and profitability contributes to effective financial decision-making and therefore entails the optimization and competitiveness of MYPES;

Rojas Guerrero, Ruth Odila (2005) Thesis: "Financial instruments in the optimal management of MYPES in the construction sector". Work presented to choose the Master's Degree in Finance at the Federico Villarreal National University. The financial instruments and how they facilitate the optimal management of the human, material and financial resources of the MYPES in the construction sector are identified;

Escobar Córdova, Gladys (2005) Thesis: "The financial administration in achieving the strategic plans of the MYPES". Work presented to choose the Master's Degree in Finance at the Federico Villarreal National University. In this work, the author analyzes the way in which the financial investment, indebtedness and dividend decisions of the business financial administration facilitate the achievement of the goals, objectives and mission contained in the strategic plans of the MYPES;

Zambrano Calle, Abraham José (2005) Thesis: "Financial management and the development of SMEs in the textile industrial activity of Metropolitan Lima-Period 2002-2003"; presented to opt for the Academic Degree of Master in Finance at the Federico Villarreal National University. This work analyzes financial management and its contribution to the development of SMEs.

Begazo Villanueva, José Domingo (1996) Thesis: “The small garment company in Villa El Salvador and its competitiveness”; presented to opt for the Master's Degree in Economic and Social Development at the Federico Villarreal National University. In this work, the economy, efficiency, effectiveness, productivity and competitiveness of small garment companies are evaluated, with the purpose of seeking international markets.

Hernández Fernández, Maritere (2005) Thesis: "Financial decisions for the development of Mexican MYPES". Thesis presented to choose the Master's Degree in Finance at the Autonomous University of Mexico. The author describes a set of financing decisions that allow companies to make the investments they need to develop within the framework of a competitive market.

Castillo Heredia, Gustavo (2005) Thesis: "Peru: Effective financial decisions for business development, within the framework of the social market economy". Presented to opt for the Master's Degree in Finance at the Federico Villarreal National University. In this research work, the author describes the way in which financial decisions, insofar as they are effective, contribute to the continuous improvement, productivity, competitiveness and development of companies in the trade, industry and services sectors, all within the framework of the social market or free competition economy;

Mendoza Torres, Ana María (2005) Thesis: "Strategic financial management for the competitiveness of MYPES in the trade sector". Presented to opt for the Master's Degree in Accounting in the mention of Management Accounting at the Universidad Nacional Mayor de San Marcos. In this work, the author presents the effective management of investments and financing as the solution for companies in the trade sector to obtain efficiency, effectiveness, and economy; productivity, continuous improvement and competitiveness in the sub-sectors in which they carry out their business activities;

4.2. PROBLEM STATEMENT

According to the research model to be developed, the problem has been identified in the lack of economy (high costs and minimum benefits), lack of efficiency (inadequate rationalization of resources), lack of effectiveness (failure to meet goals and objectives), lack of continuous improvement (there are no qualitative and quantitative change programs) and lack of competitiveness (as a consequence of the aforementioned).

Financial problems have also been identified. MYPES do not have an adequate financial capital structure, that is, liabilities and equity; which means that they do not have the necessary financial resources to finance the investments they need to carry out a continuous improvement plan.

MYPES do not have an adequate investment structure, that is, assets; Too many idle fixed assets that do not contribute to generating income for companies have been identified. Sometimes the company has deficiencies in financial working capital, that is, in current assets, either due to the lack of availability of income from cash or cash equivalents, merchandise to serve customers and other deficiencies in this area of balance sheet. The same situation happens with accounting working capital, that is, current assets minus current liabilities, is not enough to meet the entity's obligations.All this is configured as a deficiency in the investment decisions of the financial management of the company and therefore affect the lack of continuous improvement necessary to compete.

MYPES do not formulate financial budgets (cash flows) that allow them to measure a priori the projected profitability they need to deliver to shareholders as dividends or to reinvest it in the activities of the company. As long as any result they obtain cannot be measured, because there is no comparison instrument; Likewise, the results obtained are also not compared with companies of the same level and line of business. Neither do companies make comparisons with the profitability obtained in previous years (historical profitability). All this is configured as a deficiency in the decision of dividends or profitability, which affects continuous business improvement.

Another important point that affects the development of MYPES is the lack of consideration of risks; they do not analyze internal risks, much less external or market risks. In the internal risks is the lack of planning, organization, direction, coordination and control of the company's resources; which have to be weighed to facilitate continuous business improvement. Regarding unweighted external risks, there are exchange rate fluctuations, inflation, competition from national and international groups, government measures, etc. all of which configures a deficiency in risk decisions that affects the continuous improvement of MYPES.

On the other hand, it has been determined that MYPES do not carry out the analysis and interpretation of the financial and economic information contained in the financial statements; therefore they do not have information on liquidity, management, solvency and profitability; neither of the evolution of investments and debts; income and expenses from one exercise to another. All this is configured as deficiencies in financial management that negatively affect the continuous improvement of MYPES.

4.3. PROBLEM FORMULATION

MAIN PROBLEM.

How does effective business management facilitate continuous improvement of MYPES in the trade sector?

SECONDARY PROBLEMS.

1) How will the management process facilitate the efficiency of MYPES in the trade sector?

2) What strategies should be established to facilitate the effectiveness of MYPES in the trade sector?

3) What decisions will facilitate the competitiveness of MYPES in the trade sector?

4.4. THEORETICAL FRAMEWORK

4.4.1. THEORIES OF EFFECTIVE BUSINESS MANAGEMENT.

Interpreting Koontz & O´Donnell (2004) effective business management is related to the fulfillment of the actions, policies, goals, objectives, mission and vision of the company; as established by modern business management. Effective management is the process undertaken by one or more people to coordinate the work activities of other people in order to achieve high quality results that a person could not achieve on their own. Competitiveness comes into play in this framework, which is defined as the extent to which a company, under free market conditions, is capable of producing goods and services that pass the market test, while maintaining or expanding real income from your employees and partners. Quality is also conceived in this framework,which is the totality of the features and characteristics of a product or service that refer to its ability to satisfy expressed or implicit needs. Effective management is the set of actions that allow you to obtain the maximum performance from the activities carried out by the company. Effective management, which means that the members of a company work together with greater productivity, that they enjoy their work, that they develop their skills and abilities and that they are good representatives of the company, presents a great challenge for its managers.is to make the members of a company work together with greater productivity, that they enjoy their work, that they develop their skills and abilities and that they are good representatives of the company, it presents a great challenge for the company's managers.is to make the members of a company work together with greater productivity, that they enjoy their work, that they develop their skills and abilities and that they are good representatives of the company, it presents a great challenge for the company's managers.

Interpreting Koontz & O´Donnell (2004), the traditional approach to effective business management, studies the structure of the organization and defines the roles of people in it. The most important contribution of this approach has been to define and analyze the tasks that are necessary to create and enhance a company. A frame of reference is created that allows managers to design tasks, such as dividing them into other tasks and coordinating them. This approach is not entirely complete because it is a static approach. Formal structures are taken into account more than the people who make up the organization. On the other hand, the focus of human relations is the result of the investigation of what really happens in the organization,such as the people who work in it and the way in which informal organization exists within formal structures, and above all, what small production groups contribute and many other aspects of human behavior at work. The main limitation of this approach is that humans are so complex that many of the causes of much of the behavior are still unknown. The systematic approach is broader and more dynamic than the previous ones. When studying the progress of organizations, all the interrelation and interdependence of the different elements that compose it are observed, including the relationship of the organization with its environment.what small production groups contribute and many other aspects of human behavior at work. The main limitation of this approach is that humans are so complex that many of the causes of much of the behavior are still unknown. The systematic approach is broader and more dynamic than the previous ones. When studying the progress of organizations, all the interrelation and interdependence of the different elements that compose it are observed, including the relationship of the organization with its environment.what small production groups contribute and many other aspects of human behavior at work. The main limitation of this approach is that humans are so complex that many of the causes of much of the behavior are still unknown. The systematic approach is broader and more dynamic than the previous ones. When studying the progress of organizations, all the interrelation and interdependence of the different elements that compose it are observed, including the relationship of the organization with its environment.When studying the progress of organizations, all the interrelation and interdependence of the different elements that compose it are observed, including the relationship of the organization with its environment.When studying the progress of organizations, all the interrelation and interdependence of the different elements that compose it are observed, including the relationship of the organization with its environment.

Interpreting Gitman (1986), effective business management includes the concretion of policies, through the application of strategies, tactics, processes, procedures, techniques and practices. A policy is not a legal document. It is an agreement based on the principles or guidelines of a key activity area of ​​an organization. A policy expresses how the organization is doing about its work and how it runs it. Good policies express a fair and sensible way of dealing with issues. Whenever possible, no organization should change its policies often. The intention is to guide the work of an organization for a reasonable time. Once the policy becomes organizational practice and has been approved by the Board or by the institutional governance structure, it is uniting the entire organization

For the Pacific Research Institute (2004), effective business management is to administer and provide services for the fulfillment of goals and objectives, to provide information for decision-making, to monitor and control the collection of income, management of accounts receivable, stocks, etc. The management includes planning, organization, direction and control. Planning is applied to clarify, expand and determine the objectives and courses of action to be taken; for forecasting; establish conditions and assumptions; select and indicate the areas for achieving the objectives; establish a plan of achievement; establish achievement policies, procedures, standards and methods; anticipate possible future problems;modify plans in light of control results. The organization is applied to distribute the work among the group and to establish and recognize the necessary relationships and authority; subdivide work into operational tasks; arrange group operational tasks in operational positions; gather operational positions between related and administrable units; define the requirements of the job; select and place the human element in a suitable position; delegate due authority to each member of management; provide facilities and other resources to staff; review the organization in light of the control results. The execution is carried out with the practical, active and dynamic participation of all those involved in the decision or the managerial act;lead and challenge others to do the best they can; guides subordinates to comply with operating rules; highlight creativity to discover new or better ways to manage and perform work; praise and repress with justice; rewarding work well done with recognition and payment; review performance in light of control results. The control of activities, this phase is applied to compare the results with the plans in general; evaluate results against business planning and execution standards; devise effective means for measuring operations; make the measuring elements known; transfer detailed data to show comparisons and variations; suggest corrective actions, if necessary;inform the responsible members of the interpretations; adjust the plan in light of the control results. In managerial practice, these stages of the process are intertwined and interrelated; the execution of a function does not stop entirely before the next one starts. The sequence must be tailored to the specific objective or the particular project. Typically a manager is committed to many goals and can meet each one at different stages of the process.Typically a manager is committed to many goals and can meet each one at different stages of the process.Typically a manager is committed to many goals and can meet each one at different stages of the process.

Interpreting Ross (2000) effective business management has to do with obtaining resources, but also with good management. The key is how tasks are defined and distributed, how administrative links between units are defined, and what practices are established. Means must be created to monitor the strengths and weaknesses of the structures and processes. At the same time, the cultural and historical constraints that influence business administration must be taken into account.

For Van Horne (1995), effective business management cannot be understood separately from financial management, and less from economic management. This because the financial is practically the support that validates the logic in the business or business of the companies in their respective enclaves. Let us think that in order to achieve social objectives it will be necessary for them to guarantee financial stability. In the same way, decision-making concerning merely financial management in one way or another, directly or indirectly, in the short or long term, influences the general situations of these companies. Financial management is a process that involves the income and expenses attributable to the rational management of money, and consequently the (financial) profitability generated by it.This allows us to define the basic objective of financial management from two elements. That of generating resources or income (income generation) including those contributed by associates. And secondly, the efficiency and effectiveness (efforts and demands) in the control of financial resources to obtain acceptable and satisfactory levels of management. The first element includes aspects of the growth of companies that was elucidated after the financial crisis of the early 80s, and in a second stage with openness to unrelated third parties in the 90s. The discussions around this topic placed some boards of directors in controversy in front of the general managers of several of the organizations analyzed.This in the sense of what was the most appropriate way and in which markets should be captured and placed financial resources. With the second element, no discussions were raised regarding the efforts and demands in money management. This is indisputable and reinforced in this context by good administration management. There were conflicting views on the management of profitability levels and their impact on business purposes (correcting the imbalance in market power). The interest rates for money placements in associated entities and third parties versus the maximization of the profit in their placement; the relationship of the cost of credit versus the fulfillment of the business purpose.With the second element, no discussions were raised regarding the efforts and demands in money management. This is indisputable and reinforced in this context by good administration management. There were conflicting views on the management of profitability levels and their impact on business purposes (correcting the imbalance in market power). The interest rates for money placements in associated entities and third parties versus the maximization of the profit in their placement; the relationship of the cost of credit versus the fulfillment of the business purpose.With the second element, no discussions were raised regarding the efforts and demands in money management. This is indisputable and reinforced in this context by good administration management. There were conflicting views on the management of profitability levels and their impact on business purposes (correcting the imbalance in market power). The interest rates for money placements in associated entities and third parties versus the maximization of the profit in their placement; the relationship of the cost of credit versus the fulfillment of the business purpose.There were conflicting views on the management of profitability levels and their impact on business purposes (correcting the imbalance in market power). The interest rates for money placements in associated entities and third parties versus the maximization of the profit in their placement; the relationship of the cost of credit versus the fulfillment of the business purpose.There were conflicting views on the management of profitability levels and their impact on business purposes (correcting the imbalance in market power). The interest rates for money placements in associated entities and third parties versus the maximization of the profit in their placement; the relationship of the cost of credit versus the fulfillment of the business purpose.

4.4.2. THEORIES ON CONTINUOUS IMPROVEMENT OF THE MYPES OF THE TRADE SECTOR.

Interpreting Bahamonde (2000), the MYPES, are economic units constituted by a natural or legal person, under any form of organization or business management contemplated in the current legislation, which aims to develop activities of extraction, transformation, production, marketing of goods or provision of services. These companies can achieve efficiency and effectiveness if they have adequate financial direction and management for their sources of financing and investments.

Analyzing Flores (2004-b), MYPES can be defined as entities that, operating in an organized manner, use their knowledge and resources to develop products or provide services that they supply to third parties, in most cases for profit or profit. These companies must have the following concurrent characteristics: The total number of workers: In the case of a micro-company, it ranges from one to ten workers; the small company comprises from 1 to fifty workers; Annual sales levels: This level will be up to a maximum of 150 UIT; small business from 150 to 850 ITU. Sales levels will be possible to reach and exceed, if there is adequate financial management and direction to specify the income and expenses that each micro and small company must carry out.

According to Díaz and Jungbluth (1999), continuous improvement is understood when MYPES have mechanisms for facilitating and promoting access to markets: business association, state purchases, marketing, export promotion and information on this type of Business; all of which can be positively directed with an adequate business direction and management that carries out the planning of activities and resources, establishes a structural and functional organization that allows the activities of the business activity; the most appropriate decisions are made by management; all the elements are coordinated and the resources are continuously controlled.

Interpreting Koontz & O´Donnell (2004) the continuous improvement of MYPES, aims to promote efficiency, effectiveness and competitiveness; in addition to the formalization and development itself, to increase sustainable employment, its productivity and profitability, its contribution to the Gross Domestic Product, the expansion of the domestic market and exports, and its contribution to tax collection.

Koontz & O'Donnell (2004), indicates that continuous improvement is a process and that it begins with planning that includes the selection of objectives, strategies, policies, programs and procedures. Planning is therefore decision-making, because it includes choosing one among several alternatives. The organization includes the establishment of an organizational and functional structure, through the determination of the activities required to achieve the goals of the company and each of its parts, the grouping of these activities, the assignment of such groups of activities to a chief, the delegation of authority to carry them out, and the provision of the means for horizontal and vertical coordination of information and authority relations within the organization's structure.Sometimes all of these factors are included in the term organizational structure, other times they are called administrative authority relationships. In any case, the totality of such activities and the relationships of authority are what constitute the function of organization. Integration is the provision of personnel to the positions provided by the organizational structure. Therefore, it requires the definition of the workforce that will be necessary to achieve the objectives, and includes inventorying, evaluating and selecting the suitable candidates for such positions; compensating and training or otherwise developing both candidates and people who already occupy their positions in the organization to achieve the objectives and tasks effectively. Regarding direction and leadership,an author like Johnson Gerry and Scholes, Kevan. (1999) says that although this function seems simple, the methods of management and leadership can be extremely complex. The bosses instill in their work a clear appreciation of the institutions' traditions, objectives and policies. Workers become familiar with the structure of the organization, with the interdepartmental relationships of activities and personalities, and with their duties and authority. Koontz & O´Donnell (2004) says that to achieve continuous improvement, in addition to adequate management, control must be considered as part of the effective management process, in this regard they indicate that control is the evaluation and correction of the activities of the subordinates to make sure that what is done conforms to the plans.In this way, it measures performance in relation to goals and projects, shows where there are negative deviations and, by setting in motion the necessary actions to correct such deviations, contributes to ensuring compliance with the plans. Although planning must precede control, plans are not self-fulfilling. The plan guides the boss so that at the appropriate time he applies the resources that will be necessary to achieve specific goals. The activities are then measures to determine if they fit the planned actionThe plan guides the boss so that at the appropriate time he applies the resources that will be necessary to achieve specific goals. The activities are then measures to determine if they fit the planned actionThe plan guides the boss so that at the appropriate time he applies the resources that will be necessary to achieve specific goals. The activities are then measures to determine if they fit the planned action

Flores (2004-a) indicates that the continuous improvement of the MYPES will be faced when the State promotes the technological modernization of the business fabric of these companies and the development of the market for technological services as supporting elements of a national innovation system. keep going. The National Council of Science and Technology –CONCYTEC- should promote, articulate and operationalize technological research and innovation among Universities and Research Centers with this type of companies. The state must promote MYPES access to the financial and capital markets, promoting the expansion, solidity and decentralization of these markets. The State promotes the strengthening of microfinance institutions supervised by the Superintendency of Banking and Insurance. The state,through the Development Finance Corporation -COFIDE- it must promote and articulate financing in its entirety, diversifying, decentralizing and increasing the coverage of the offer of services in the financial and capital markets for the benefit of these companies.

Analyzing Pérez (2000), the continuous improvement of the MYPES consists of creating, and then directing, a whole series of relationships between the company and its workers, suppliers, banks and clients. The first step in creating the desired relationships is to set goals, discussing those goals you want to set with those who should achieve them. In setting these goals it should be such that the outcome can be approached in measurable terms. Any modification to them must have the appropriate means. Finally, it is necessary to test them continuously since their intention at a certain moment may not be feasible to achieve it.

Según Bellido (1989) y Castin (1996), la organización de la micro y pequeña empresa típica se suele establecer en función de las circunstancias. El propietario es el motor principal. La mayoría de las cosas que hay que hacer o son hechas por el mismo o bajo su directo control. Esto es cierto en los primeros años de vida de la empresa. Es de esperar que una persona empeñada en esta tarea no tenga que aplicar probados principios de organización a su negocio, cuando sean necesarios debido a la expansión del mismo y, en este sentido se llega a un punto que exceda las posibilidades de cualquiera para dirigirlo. En cualquier caso, en toda pequeña y mediana empresa, llega un momento en que propietario o gerente tiene que delegar la responsabilidad de las decisiones en alguna otra persona. Es en ese punto cuando empieza a poner en práctica lo que se llama organización.

4.4.3. CONCEPTUALIZATIONS RELATED TO THE INVESTIGATION:

STRATEGIC MANAGEMENT:

Administrative process that involves an organization, which invites it to carry out the exercise of strategic planning, defining long and short term plans; so that later it acts in accordance with said plans. As a whole, strategic management is the application of the global management process in all its stages.

COMPETITIVENESS:

Strategic approach through which it seeks to position an organization with a certain degree of importance in the market, by exploiting certain characteristics that allow it to make a difference with respect to its competitors.

ORGANIZATIONAL CHANGE:

Action that supposes an attempt previously planned by the management units, to improve the general performance of individuals, work groups and the organization itself; by modifying the structure, controlling behavior and designing and managing the operational processes of the organization itself.

ORGANIZATIONAL CULTURE:

It refers to the values, beliefs and fundamental principles that constitute the foundations of an organization's management system, as well as the set of management behavior procedures that serve as examples and reinforce these basic principles. These principles and procedures endure because they have meaning for the members of the organization. They represent strategies for survival that have worked well in the past and that members believe will work well in the future.

BUSINESS DEVELOPMENT:

Starting from the premise that development is the qualitative, quantitative and lasting improvement of an economic and / or business system, as well as its operation; Business development can be defined as the continuous improvement of qualitative aspects and growth in economic, financial and productive terms of the entity.

SUSTAINABLE DEVELOPMENT:

A growth process in which technology, the exploitation of resources, and social and political organization satisfy the needs of the present without compromising the capacity to satisfy those of future generations.

ORGANIZATIONAL DEVELOPMENT:

It is a systematic, integrated and planned approach to increase business efficiency.

Its design seeks to solve problems that reduce operational efficiency at all levels.

DIRECTION:

It has at least two meanings. The first refers to the high wide range of activities by which managers establish the character and tone of their organization. Between them they establish the character and tone of their organization. These include articulating and exemplifying the values ​​and the own style of the companies. We will call this the concept of Leadership based on the transformation of the institution. The second meaning of direction denotes the interpersonal influx process by which managers communicate with subordinates regarding job performance. Work is facilitated when information is exchanged about technical, coordination and motivational problems.

STRUCTURE:

The scheme of the more or less stable interrelationships and communication flows between the parts of a system, which can be verified (identified) at any given time.

ORGANIZATIONAL STRUCTURE:

It is the formal guideline that indicates how the association, coordination, interrelation and connection of the different strata that make up the commercial chain are executed.

BUSINESS MANAGEMENT:

Process that includes the different stages of the administrative process, as long as the proposed objectives are achieved. It starts from the concept of simple management, which is the achievement of objectives; therefore, business management is to achieve the proposed purposes through the coordinated execution of strategic and operational plans.

ORGANIZATION:

Set of actions carried out by the leaders of an institution, in the distribution of work, through the allocation of functions, which are consistent with each other and in which the members intervene in achieving the goals and objectives of the institution.

POLICIES:

Policies are general statements or ideas that guide thinking in decision making. They ensure that decisions fall within certain borders. They usually do not require action, but are intended to guide managers in their commitment to the decisions they will ultimately make. The essence of politics is discretion. The strategy, on the other hand, deals with the direction in which the human and material resources will be applied in order to increase the probability of achieving the selected objectives. Some fundamental policies and strategies may be essentially the same.The policy of developing only those new products that fit into a company's marketing plan, or that of distributing only through intermediaries, may be an essential element of a company's strategy for developing and marketing a new product. One company may have a policy of growth through acquisitions of other companies, while another will have a policy of growing only by expanding current markets and products.

PLAN:

Set of previously defined actions, to be carried out in a clearly determined period of time. It includes the objectives to be achieved and a list of the expected results after its execution.

TO PLAN:

Action developed by the Directors or Executives of an organization, to define the objectives and operating mechanisms for a period of time. It involves thinking ahead about goals and actions based on some method.

PLANNING:

In the most universal sense, it implies having one or several objectives to be carried out together with the actions required to be successfully concluded. It goes from the simplest to the complex, depending on the medium to be applied. The action of planning in management refers to plans and projects in their different, scope, levels and attitudes.

STRATEGIC PLAN:

An exhibition outlining an organization's mission and future direction, short and long-term performance objectives, and strategy.

OPERATIONAL PROFITABILITY

Percentage margin of the relationship between earnings, after discounting costs and expenses compared to total income, used assets and available equity.

4.5. JUSTIFICATION AND IMPORTANCE OF THE INVESTIGATION

4.5.1. METHODOLOGICAL JUSTIFICATION

In this work the scientific methodology will be applied; which will consist of identifying the problem, and after analyzing the theories, formulating solutions through the hypothesis; as well as identifying the objectives that guide the research. All this by applying all the corresponding methodological elements.

4.5.2. THEORETICAL JUSTIFICATION

The continuous improvement of the MYPES requires the corresponding solution, the same that comes through the application of a business management model that has normative documents, policies, strategies, actions, goals, objectives, evaluations and everything necessary that affects the improvement required by these types of companies.

Companies that have an adequate business management model have carried out the planning, organization, direction, coordination and control of their activities and resources, guiding them towards achieving economy, efficiency, effectiveness, competitiveness and therefore continuous improvement.

The basis for achieving MYPES competitiveness starts from proper business management. As part of this management, human resource management, financial resource management and material resource management of companies are included.

Effective business management guides MYPES to achieve their goals, objectives, mission and business vision.

Effective business management makes informed decisions about company benefits, results and costs incurred, goals and objectives, changes in processes and procedures; market shares, change of business and other related activities.

Effective business management has to do with the legal, financial, labor, tax, accounting and other aspects of MYPES, so that they carry out their activities aimed at continuous improvement.

The continuous improvement of the MYPES will take place when they have mechanisms for facilitating and promoting market access: business association, state purchases, marketing, export promotion and information; all of which can be positively directed with an adequate business direction and management that carries out the planning of activities and resources, establishes a structural and functional organization that allows the activities of the business activity; the most appropriate decisions are made by management; all the elements are coordinated and the resources are continuously controlled.

The improvement of the MYPES will be faced when the State promotes the technological modernization of the business fabric of these companies and the development of the market for technological services as supporting elements of a national system of continuous innovation. When the access of micro and small companies to the financial market and the capital market is promoted, promoting the expansion, solidity and decentralization of these markets.

4.5.3. PRACTICAL JUSTIFICATION

This work may be used as a business management model for the development of MYPES in the trade sector.

4.5.4. IMPORTANCE

It is important because it will allow the knowledge and experiences on MYPES in Peru to be captured. Also because it will allow applying the scientific research process. Also because it will give important contributions to the Micro and Small companies sector of the commerce sector.

V. OBJECTIVES OF THE INVESTIGATION

5.1. OVERALL OBJECTIVE

Determine the effective business management model that will facilitate the continuous improvement of MYPES in the trade sector.

5.2. SECONDARY OBJECTIVES

1) Determine the management process that will facilitate the efficiency of MYPES in the trade sector.

2) Establish strategies that will facilitate the effectiveness of MYPES in the trade sector.

3) Define the decisions that will facilitate the competitiveness of MYPES in the trade sector.

SAW. HYPOTHESIS OF THE INVESTIGATION

6.1. MAIN HYPOTHESIS

Effective business management has a favorable impact on the continuous improvement of MYPES in the trade sector, by defining a management process, defining strategies and making informed decisions.

6.2. SECONDARY HYPOTHESIS

1) The management process facilitates the efficiency of MYPES in the trade sector, through the planning, organization, direction and control of activities and resources.

2) Financial and commercial strategies facilitate the effectiveness of MYPES in the trade sector

3) Decisions on economy, efficiency, effectiveness and continuous improvement; facilitate the competitiveness of MYPES in the trade sector.

6.3. VARIABLES AND VARIABLES AND INDICATORS OF THE INVESTIGATION

Independent variable:

X = Effective business management

Indicators:

X1 = Management process

X2 = Strategies

X3 = Decision making

Dependent variable

Y = Continuous improvement of MYPES in the trade sector.

Indicators:

Y1 = Efficiency

Y2 = Effectiveness

Y3 = Competitiveness

VII. METHODOLOGY

7.1. TYPE AND LEVEL OF INVESTIGATION

7.1.1. KIND

This is applied research, since effective business management may be used by MYPES in the trade sector to have business management that has an impact on continuous improvement.

7.1.2. LEVEL

Taking as a reference the nature of the variables, this will be an investigation of the descriptive-explanatory-correlational level; since it will describe effective business management and continuous improvement of MYPES, then it will explain how effective business management facilitates continuous improvement of MYPES in the trade sector and finally will correlate its application to MYPES in other sectors, regions and departments of the Peru.

7.2. METHOD AND DESIGN OF THE INVESTIGATION

7.2.1. METHOD

Descriptive. This method will describe all aspects of effective business management and how to achieve continuous improvement of MYPES.

Inductive. It will be used to infer the information of the effective business management in the continuous improvement of the MYPES; as well as to infer the results of the sample in the population and draw the corresponding conclusions.

7.2.2. DESIGN

Design is the plan or strategy that will be developed to obtain the information that the investigation requires. The design to be applied is Non-Experimental, Transectional or transversal, Descriptive, Correlational-causal.

Non-experimental design is defined as research that will be carried out without deliberately manipulating variables. In this design, phenomena will be observed as they occur in their natural context, and then analyzed. The Transsectional or cross-sectional research design will consist of data collection. Its purpose is to describe the variables and analyze their incidence and interrelation at a given moment.

The descriptive transactional design will aim to investigate the incidence and the values ​​in which the research variables were manifested.

The correlative-causal Transectional research design will serve to relate between two or more categories, concepts or variables at a given moment. These will also be descriptions, but not individual categories, concepts, objects, or variables, but rather their purely correlational or causal relationships.

7.3. POPULATION AND SAMPLE

7.3.1. POPULATION

The population to be investigated is made up of managers, officials and workers of the MYPES of the commercial sector of Metropolitan Lima

7.3.2. SHOWS

To define the sample size, simple random sampling has been used and the statistical formula for populations less than 100,000 has been applied.

Where:

N Is the sample size to be taken into account for the field work. It is the variable that you want to determine.

P and q They represent the probability of the population to be included or not in the sample. According to the doctrine, when this probability is not known from statistical studies, it is assumed that p and q have a value of 0.5 each.

Z Represents the standard deviation units that in the normal curve define an error probability = 0.05, which is equivalent to a 95% confidence interval in the sample estimate, therefore the Z value = 1.96

N The total population. In this case 132 people considering those people who have elements to answer for the research topics to be carried out.

EE Represents the standard error of the estimate, according to the doctrine, must be 0.09 or less. In this case 0.05 has been taken

Substituting:

n = (0.5 x 0.5 x (1.96) 2 x 132) / (((0.05) 2 x 131) + (0.5 x 0.5 x (1.96) 2))

n = 100

7.4. TECHNIQUES AND INSTRUMENTS

7.4.1. TECHNIQUES

The research will allow the following techniques to be applied:

• Observation.

• Documentary analysis.

• Survey.

7.4.2. INSTRUMENTS

The instruments to be used are the following:

• Observation Guide.

• Document Analysis Guide.

• Questionnaires.

VIII. SCHEDULE

IX. BUDGET

X. BIBLIOGRAPHIC REFERENCES

- ABAD Gonzales, Víctor (2008) Constitution of MYPES. Lime. Editorial San Marcos.

- ANDRADE, Simón (1990) Development planning. Lime. Editing by the author.

- BAHAMONDE Espejo, Hernando (2000) Practical Theoretical Manual to establish a company. Lime. Editorial San Marcos.

- BELLIDO S. Pedro (1989) Financial Administration. Lime. Editorial Técnico Científica SA.

- BREALEY Richard A. (1998) Principles of Corporate Finance. Madrid. PRINTED.

- CASTIN Farrero, José María (1996) Financial management in the company. Santa Fe de Bogotá - Colombia. Continental Editorial.

- COLLAZOS C. Jesús (2000) Investment and Project Financing. Lime. Editorial San Marcos.

- DÍAZ Bertha and Carlos, Jungbluth (1999) Total quality in the Peruvian company. Lime. Editorial Development Fund of the University of Lima.

- FERNÁNDEZ Bau, Carlos (1999) Financial Management in medium and small companies. Santa Fe de Bogotá - Colombia. Continental Editorial.

- FLORES Soria, Jaime (2004-a) Financial Management: Theory and Practice. Lime. CECOF Asesores.

- FLORES Soria, Jaime (2004-b) Financial Administration: Theory and Practice. Lime. CECOF Asesores.

- GITMAN Lawrence J. (1986) Foundations of Financial Management. Mexico. Harper & Row Latinoamericana.

- GÓMEZ Bravo, Luis (2006) Continuous Improvement. Havana. University of Havana - Cuba.

- GROSS Herbert (2000) Small company and big market. Madrid. Ediciones Deusto SA.

- EL PACÍFICO RESEARCH INSTITUTE (2004) Financial Management and Administration. Lime. Pacific Editors.

- JOHNSON Gerry and Scholes, Kevan. (1999) Strategic Management. Madrid: Prentice May International Ltd.

- KOONTZ / O'Donnell (1990) Modern Administration Course- An analysis of systems and contingencies of administrative functions. Mexico. Lithographic Ingramex SA

- PÉREZ Figueroa E. (2000) Organization and Administration of small business. Lime. Editing by the author. Third edition.

- RODRÍGUEZ, Leonardo (1997) Planning and management of small business. Mexico. Editorial Continental SA.

- ROSS Stephen A (2000) Corporate Finance. Mexico. IRWIN.

- VAN HORNE, James (1980) Foundations of Financial Administration. Mexico. Compañía Editorial Continental SA de CV.

- VAN HORNE, James (1995) Financial Administration. Mexico. Compañía Editorial Continental SA de CV.

- WESTON J. Fred (1990) Finance. Bogotá. The Ateneo Editorial bookshop.

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Effective business management and continuous improvement of MSMEs in the commerce sector in Lima