I. TITLE
"BUSINESS MANAGEMENT AND THE IMPACT ON THE DEVELOPMENT OF MICRO AND SMALL BUSINESSES"
II. GRADUATING NAME
III. PLACE AND SECTOR WHERE THE THESIS WILL BE APPLIED
It will be developed in Metropolitan Lima and will be applied to MSEs in the commerce sector.
IV. PROJECT DESCRIPTION
4.1 BIBLIOGRAPHIC BACKGROUND
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. In this work, financial management and its contribution to the development of SMEs are analyzed.
Begazo Villanueva, José Domingo (1996) Thesis: "The small clothing 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 clothing companies are evaluated, with the purpose of searching for international markets.
Hernández Fernández, Maritere (2005) Thesis: " Financial decisions for the development of companies ". 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 make it possible to make the investments that companies need to develop in a competitive market.
Aguabarrena García, Carlo Magno (2004) Thesis: " Competitive financial administration with effective financial decisions ". Thesis presented to choose the Master's Degree at the Catholic University of Chile. The author describes the financial decisions that allow having an adequate capital structure to dispose of the goods and rights they need to fulfill the institutional mission and thus ensure their continuity in the Chilean 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 sector, 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 MSEs in the commerce sector ". Presented to choose 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;
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 making effective financial decisions and therefore leads to the optimization and competitiveness of MSEs;
Rojas Guerrero, Ruth Odila (2005) Tesis: “Los instrumentos financieros en la gestión óptima de las empresas del sector construcción“. Trabajo presentado para optar el Grado de Maestro en Finanzas en la Universidad Nacional Federico Villarreal. Se identifica los instrumentos financieros y la forma como facilitan la gestión óptima de los recursos humanos, materiales y financieros de las empresas del sector construcción;
Escobar Córdova, Gladys (2005) Thesis: " Financial management in achieving the strategic plans of private educational entities ". 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 private educational entities;
4.2 PROBLEM STATEMENT
The problem in this research work is identified in the lack of development of the MYPES. This situation is configured in the lack of economy (high costs and minimal benefits), lack of efficiency (inadequate rationalization of resources), lack of effectiveness (lack of compliance with goals and objectives), lack of continuous improvement (there are no change programs qualitative and quantitative) and lack of competitiveness (as a consequence of the above). This situation configures a lack of expansion of the companies of the sole companies, lack of expansion in terms of annexed establishments, lack of diversification of products and services, etc.
Financial problems have also been identified. The MYPES do not have an adequate structure of financial capital, that is, of liabilities and equity; which means that they do not have the necessary financial resources to finance the investments they need to carry out business development. 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 they affect the lack of business development.
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. Nor does the company 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 business development.
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 weighted to facilitate business development. Regarding unweighted external risks, there are exchange rate fluctuations, inflation, fierce competition from national and international groups, government measures, etc. all of which configures a deficiency in risk decisions that affects the development of MSEs.
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 of this is configured as deficiencies in financial management that negatively affect the development of MSEs.
To solve all this problem a business management model is proposed that allows to have documents, policies, strategies, actions, adjustments and feedback so that the MYPES can plan, organize, direct, coordinate and control the processes, activities and resources; and thus enter into a business development process.
4.3 FORMULATION OF PROBLEMS
MAIN PROBLEM:
How can business management influence the development of MYPES in Peru?
SECONDARY PROBLEMS:
1) How will the management process affect the effectiveness of MYPES in Peru?
2) How will decision-making affect the competitiveness of MYPES in Peru?
4.4 THEORETICAL FRAMEWORK
4.4.1. THEORIES OF BUSINESS MANAGEMENT
Interpreting Gitman (1986), business management includes the realization 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 El Pacífico Research Institute (2004), business management is to administer and provide services for the fulfillment of goals and objectives, provide information for decision-making, monitor and control revenue collection, management accounts receivable, inventories, 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), financial management has to do with obtaining resources, but also with their 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), business management cannot be understood separately from financial management and even 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.
Interpreting Koontz & O'Donnell (2004) 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 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.
4.4.2. THEORIES OF THE DEVELOPMENT OF MYPES
Interpreting Koontz & O´Donnell (2004) the development of companies, aims to promote competitiveness, formalization and development itself, to increase sustainable employment, productivity and profitability, its contribution to Gross Domestic Product, expansion of the domestic market and exports, and its contribution to tax collection.
Interpreting Abad (1989), Bahamonde (2000) and Rodríguez (1997), small and medium-sized companies are economic units constituted by a natural or legal person, under any form of organization or business management contemplated in current legislation, which has as an objective to carry out activities of extraction, transformation, production, commercialization 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), small and medium-sized companies 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 an adequate financial direction and management to specify the income and expenses that each micro and small company must carry out.
According to Díaz and Jungbluth (1999), development is understood as when micro and small companies have mechanisms for facilitating and promoting access to markets: business associations, state purchases, marketing, export promotion and information on this. type of companies; 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.
Flores (2004-a) indicates that the development 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 technological services market as elements of support of a national system of continuous innovation. 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 the access of micro and small companies to the financial and capital markets, fostering 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 first duty of the manager or administrator of a micro and small business 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.
According to Bellido (1989) and Castin (1996), the organization of the typical micro and small business is usually established depending on the circumstances. The owner is the main engine. Most of the things that need to be done or are done by himself or under his direct control. This is true in the first years of the company's life. It is to be expected that a person committed to this task does not have to apply proven organizational principles to his business, when necessary due to its expansion, and in this sense a point is reached that exceeds the possibilities of anyone to direct it. In any case, in every small and medium-sized company, there comes a time when the owner or manager has to delegate responsibility for decisions to someone else.It is at this point that he begins to put into practice what is called organization.
Koontz & O'Donnell (2004) indicates that development 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.with the interdepartmental relationships of activities and personalities, and with their duties and authority.with the interdepartmental relationships of activities and personalities, and with their duties and authority.
Koontz & O'Donnell (2004) say that to achieve business development, 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 ensure that what is done goes according to plan. 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 action
4.4.3. CONCEPTUALIZATIONS RELATED TO THE INVESTIGATION:
DIVERSIFICATION
Distribution of investments between different types of securities, industries and locations, with the idea of reducing risk.
INVESTMENT
Placing funds in securities for income or profit.
RISK
The probability of incurring a loss from unforeseen changes in the price or performance of an investment.
MANAGE:
To administer is to plan, organize, direct and control all the resources of an economic entity to achieve clearly determined ends. It relies on other sciences such as economics, law and accounting to be able to exercise its functions.
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.
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.
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.
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.
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.
CONTROL SYSTEM.
Set of elements, principles, processes, procedures and control techniques linked to each other, in order to evaluate the management and contribute to its efficiency and effectiveness.
CONTROL ENVIRONMENT
Conditions or circumstances in which the control actions of a company are developed.
INTERNAL OPERATIONAL CONTROL
Its purpose is operational and is exercised by operational departments rather than financial and accounting, although they use the latter as a source of information
CONTROL ELEMENTS:
Organization
It is made up of the organic structure; the lines of authority, responsibility and coordination; the division of labor, assignment of responsibility and other aspects.
Definition of objectives
They are the means of reference that the control uses to evaluate institutional management.
Processes and procedures
Processes are the various stages that control comprises. Instead, the procedures are the techniques and practices that are applied to the institution, activities or functions that are evaluated.
Personnel Performance
It includes the recruitment, training, execution of activities, compensation for work and the results of their activities (efficiency or deficiency), as well as the morality and ethics that apply.
Permanent supervision.
It comprises the set of actions to observe, examine, inspect the activities of the personnel.
CONTROL COMPONENTS
The COSO report (Committee of Sponsoring Organizations of the Treadway Commission) considers the following components: control environment, risk assessment, control activities, information and communication and supervision.
OBJECTIVES OF INTERNAL CONTROL IN THE FRAMEWORK OF THE COSO REPORT:
• Efficiency and effectiveness of operations.
• Reliability of financial information.
• Compliance with applicable laws and regulations
CONTROL STANDARDS
The plans are the bases against which the controls must be established, it logically follows that the first step in the process would be to establish plans. However, since these vary in level of detail and complexity, and since administrators do not usually observe everything, special rules are established. Standards are, by definition, simple evaluation criteria. They are the points selected in a total planning program where evaluation measures are carried out, in such a way that they can guide administrators regarding how things are going without them having to observe each step in the execution of the plans.
CONTROL PROCESS
These are the stages that control comprises. Each stage has its own methodology, its techniques, actions and procedures. It includes planning, organization, direction, coordination and integration, execution and reports.
CONTROL ACTIONS
Effect of applying the procedures, techniques and practices in a company. They are the procedures used in the entity's control activities.
CONTROL RISKS
The identification and analysis of risks is a continuous interactive process and constitutes a fundamental component of an effective internal control system. Management must carefully examine existing risks at all levels and take appropriate action and manage them
CONTROL AS A FEEDBACK SYSTEM
The position of considering control only as the establishment of standards, evaluation measures and correction of deviations, has changed in recent times. Managers surely measure actual work, compare it against norms, and identify and analyze deviations. But then, to make the necessary corrections, you must implement and improve corrective action programs in order to achieve the desired objectives.
WHAT CAN BE ACHIEVED WITH INTERNAL CONTROL
Internal control can help an entity achieve its objectives, organization, management, profitability and performance and prevent the loss of resources. It can help you obtain reliable financial information. It can also reinforce confidence that the entity complies with applicable laws and regulations, avoiding damaging effects on its reputation and other consequences. In short, it can help an entity get where it wants to go and avoid dangers and surprises along the way.
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 lack of development 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 development of the MYPES.
The companies that have an adequate business management model have carried out the planning, organization, direction, coordination and control of their activities and resources, orienting them to achieve economy, efficiency, effectiveness, continuous improvement, competitiveness and therefore business development.
The basis for achieving the development of the MYPES is based on an adequate business management. As part of this management, human resource management, financial resource management and material resource management of companies are included.
A business management guides the MYPES to achieve their goals, objectives, mission and business vision.
Business management makes well-informed decisions about the costs and benefits of the company, results and costs incurred, goals and objectives, changes in processes and procedures; market shares, change of business and other related activities.
Business management has to do with the legal, financial, labor, tax, accounting and other aspects of the MYPES, so that they develop their activities aimed at development.
The development of micro and small enterprises will occur when they have mechanisms for facilitating and promoting access to markets: business associations, 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.
It will be in front of the development of the MYPES, when the State promotes the technological modernization of the business fabric of these companies and the development of the technological services market as support 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 GENERAL OBJECTIVE
Formulate a business management model that affects the development of MYPES in Peru.
5.2 SECONDARY OBJECTIVES
1) Determine the management process that will affect the effectiveness of the MYPES in Peru.
2) Define the model of decisions that must be taken so that they affect the competitiveness of MYPES in Peru.
SAW. HYPOTHESIS OF THE INVESTIGATION
6.1 MAIN HYPOTHESIS
A business management model will facilitate the managerial process and decision-making; which will influence the development of MYPES in Peru.
6.2 SECONDARY HYPOTHESES
1) The managerial process, through planning, organization, direction, coordination and control; It will affect the effectiveness of the MYPES in Peru.
2) Decisions on economy, efficiency, effectiveness and continuous improvement; They will affect the competitiveness of the MYPES in Peru.
6.3 VARIABLES AND VARIABLES AND INDICATORS OF THE RESEARCH
INDEPENDENT VARIABLE:
X = BUSINESS MANAGEMENT
Indicators:
X1 = Management process
X2 = Decision making
DEPENDENT VARIABLE
Y = DEVELOPMENT OF MYPES.
Indicators:
Y1 = Effectiveness
Y2 = Competitiveness
VII. METHODOLOGY
7.1 TYPE AND LEVEL OF INVESTIGATION
7.1.1. KIND
This is an applied research, since the research model can be used by the MSEs of the commerce sector to have a business management that affects business development.
7.1.2. LEVEL
Taking as a reference the nature of the variables, this will be an investigation of the descriptive-explanatory-correlational level; inasmuch as it will describe business management and the development of MSEs, then it will explain how business management affects the development of MSEs in the commerce sector and finally it will correlate its application to industrial and service MSEs.
7.2 METHOD AND DESIGN OF THE INVESTIGATION
7.2.1. METHOD
Descriptive. By means of this method, all aspects of business management and how to achieve the development of MYPES will be described.
Inductive. It will be used to infer information from business management in the development of 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 commerce sector.
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 | It is the size of the sample 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, it 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
| ACTIVITIES | MONTHS | ||||||
| one | two | 3 | 4 | 5 | 6 | 7 | |
| THESIS PLAN: | |||||||
| Data collection | X | ||||||
| Formulation | X | ||||||
| Presentation | X | ||||||
| Approval | X | ||||||
| THESIS: | |||||||
| Data collection | X | X | X | X | |||
| Organization of info. | X | X | X | ||||
| Information processing | X | X | |||||
| Thesis writing | X | ||||||
| Presentation | X | ||||||
| Lift | X | ||||||
| Approval | X |
IX. BUDGET
GOODS
SUBTOTAL 1 750.00 |
SERVICES
SUBTOTAL 2 2,700.00 |
| SUMMARY
SUBTOTAL 1 750.00 SUBTOTAL 2 2,700.00 TOTAL 3,450.00 |
X. BIBLIOGRAPHIC REFERENCES
- ABAD Gonzales, Víctor (2008) Constitution of SMEs. 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.
- CEPEDA Alonso, Gustavo, 1996. Internal Audit and Control, Editorial Mac. Graw - Hill, Bogotá, 2nd. Edition.
- 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.
- INSTITUTO AUDITORES INTERNOS DE ESPAÑA- Coopers & Lybrand, SA. (1997). The new concepts of internal control- COSO Report- Madrid. Ediciones Díaz de Santos SA.
- 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
- KOHLER, Eric. 1995. Dictionary for Accountants, Editorial Limusa SA, Mexico, 5th. Edition.
- POCH, R. (1992). Internal Control Manual. Editorial Gestión 2000. Second Edition. Barcelona, Spain.
- 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.
- REDONDO, A. (1993). General Accounting Practice Course. Tenth Edition. Venezuelan Accounting Center Publishing House. Venezuela.
- 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. El Ateneo Editorial Bookstore.
THESIS:
- 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.
- Begazo Villanueva, José Domingo (1996) Thesis: "The small clothing 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.
- Hernández Fernández, Maritere (2005) Thesis: "Financial decisions for the development of companies". Thesis presented to choose the Master's Degree in Finance at the Autonomous University of Mexico.
- Aguabarrena García, Carlo Magno (2004) Thesis: "Competitive financial administration with effective financial decisions". Thesis presented to choose the Master's Degree at the Catholic University of Chile.
- Castillo Heredia, Gustavo (2005) Thesis: “Peru: Effective financial decisions for business development, within the framework of the social market economy”. Presented to choose the Master's Degree in Finance at the Federico Villarreal National University.
- Mendoza Torres, Ana María (2005) Thesis: "Strategic financial management for the competitiveness of MSEs in the commerce 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.
- Ángeles Macedo, Floriana Viviana (2005) Thesis: "Financial analysis and its impact on MYPES decisions". Presented to choose the Master's Degree in Finance at the Federico Villarreal National University.
- Rojas Guerrero, Ruth Odila (2005) Thesis: "Financial instruments in the optimal management of companies in the construction sector". Work presented to opt for the Master's Degree in Finance at the Federico Villarreal National University.
- Escobar Córdova, Gladys (2005) Thesis: "Financial administration in achieving the strategic plans of private educational entities". Work presented to opt for the Master's Degree in Finance at the Federico Villarreal National University.
ANNEX No. 1:
TENTATIVE SCHEME OF THE THESIS:
"PERU: BUSINESS MANAGEMENT IN THE DEVELOPMENT OF MYPES"
Dedication
Gratitude
Summary
Abstract
Sommario
Introduction
CHAPTER I
METHODOLOGICAL FRAMEWORK OF THE INVESTIGATION
1.1 Description of the Problematic Reality
1.2 Limitations of the Investigation.
1.3 Formulation of Research Problems.
1.4 Research Objectives.
1.5 Research Hypothesis.
1.6 Variables and Indicators.
1.7 Type and Level of Research.
1.8 Research Method and Design.
1.9 Population and Sample.
1.10 Data Collection Techniques and Instruments
1.11 Justification and Importance of the Research.
CHAPTER II
LEGAL, THEORETICAL, PHILOSOPHICAL, ETHICAL AND SOCIOLOGICAL FRAMEWORK OF THE INVESTIGATION.
2.1 Background related to the Investigation.
2.2 Historical framework of the research
2.3 Legal framework of the investigation
2.4 Theoretical framework of the research
2.5 Philosophical framework of the research
2.6 Ethical framework of research
2.7 Sociological framework of research
2.8 Related conceptual framework.
CHAPTER III
RESULTS OF THE INVESTIGATION
3.1. Presentation and analysis of the survey carried out.
3.2. Testing the hypothesis
3.3. Discussion of the results obtained
3.4. Conclusions
3.5. Recommendations.
BIBLIOGRAPHIC REFERENCES.
POLL.
ANNEX No. 2: CONSISTENCY MATRIX
"BUSINESS MANAGEMENT AND THE IMPACT ON THE DEVELOPMENT OF MICRO AND SMALL BUSINESSES"
| PROBLEM | OBJECTIVES | HYPOTHESIS | VARIABLES AND INDICATORS | METHODOLOGY |
| MAIN PROBLEM.
How can business management influence the development of MYPES in Peru? SECONDARY PROBLEMS. 1. How will the management process affect the effectiveness of the MYPES in Peru? 2. How will decision-making affect the competitiveness of MYPES in Peru? |
OVERALL OBJECTIVE.
Formulate a business management model that affects the development of MYPES in Peru. SPECIFIC OBJECTIVES. 1. Determine the management process that will affect the effectiveness of the MYPES in Peru. 2. Define the model of decisions that must be taken so that they affect the competitiveness of the MYPES in Peru. |
MAIN HYPOTHESIS
A business management model will facilitate the managerial process and decision-making; which will influence the development of MYPES in Peru. SECONDARY HYPOTHESIS. 1. The managerial process, through planning, organization, direction, coordination and control; It will affect the effectiveness of the MYPES in Peru. 2. Decisions on economy, efficiency, effectiveness and continuous improvement; They will affect the competitiveness of the MYPES in Peru. |
Independent variable:
X = Business management Indicators: X1 = Management process X2 = Decision making Dependent variable Y = Development of the MYPES. Indicators: Y1 = Effectiveness Y2 = Competitiveness |
Kind of investigation:
Applied. Research level: Descriptive and explanatory Population: The population will be made up of managers, officials and workers of the MYPES of the commerce sector Shows: It will be made up of 100 people, including managers, officials and workers of the MYPES in the commerce sector of Metropolitan Lima. Methods: Descriptive and inductive. |
ANNEX No. 3:
POLL:
The following is the Questionnaire corresponding to the research work called: "BUSINESS MANAGEMENT AND THE IMPACT ON THE DEVELOPMENT OF MICRO AND SMALL BUSINESSES", whose author is the FFF,. Please mark with a cross (X) the alternative that in your opinion answers the question being asked. Your support is appreciated in advance.
QUESTIONS ABOUT BUSINESS MANAGEMENT:
| NR | ALTERNATIVES | YES | NO | N / R |
| one | Is business management the process that allows planning, organizing, directing, coordinating and controlling processes, activities and resources ? | |||
| two | Does business management consist of managing human, material and financial resources to obtain productivity? | |||
| 3 | Does business management help to obtain the sources of financing that will be used in investments, so that by weighing the risks, the profitability that the company seeks is obtained ? | |||
| 4 | Does business management allow the company to have the financial working capital and capital goods necessary to carry out its business or activity ? | |||
| 5 | Does business management allow the company to have financial capital, that is, its own financing and that of third parties to make temporary and permanent investments and generate profitability ? | |||
| 6 | Does business management direct the economy, administration, finance and accounting ? | |||
| 7 | Does business management have policies, strategies, tactics, actions, processes and procedures ? | |||
| 8 | Does business management have the necessary elements to adequately manage financial and other risks? | |||
| 9 | Does business management help to achieve economy, efficiency and effectiveness in the activities of the company? | |||
| 10 | Is business management a tool that affects the development of MYPES? |
QUESTIONS ABOUT: DEVELOPMENT OF MYPES:
| NR | ALTERNATIVES | YES | NO | N / R |
| eleven | Is the development of the MYPES a process that allows to achieve the goals and objectives ? | |||
| 12 | Is the development of the MYPES, is the set of elements adequately interwoven so that the company has economy, efficiency, continuous improvement, effectiveness and competitiveness ? | |||
| 13 | Does the development of the MYPES, seeks for the company to obtain the resources at the lowest costs and get the most out of them ? | |||
| 14 | Does the development of MYPES seek for the company to achieve the mission and business vision ? | |||
| fifteen | Does the development of MYPES include growth in operations and processes ? | |||
| 16 | Is the development of the MYPES based on the planning, organization, direction, coordination and control of financial and administrative operations? | |||
| 17 | Is it possible for a business management model to facilitate the management process and decision-making, influencing the development of MYPES in Peru? | |||
| 18 | The managerial process, through planning, organization, direction, coordination and control; Will it affect the effectiveness of MYPES in Peru? | |||
| 19 | Decisions on economy, efficiency, effectiveness and continuous improvement; will affect the competitiveness of MYPES in Peru? | |||
| twenty | Is it possible to achieve development of the MYPES, on the basis of business management? |
GITMAN Lawrence J. (1986) Foundations of Financial Management. Mexico. Harper & Row Latinoamericana.
El Pacífico Research Institute (2004) Financial Management and Direction. Lime. Pacific Editors.
Ross Stephen A (2000) Corporate Finance. Mexico. IRWIN.
Van Horne, James (1995) Financial Administration. Mexico. Compañía Editorial Continental SA de CV.
Koontz / O'Donnell (1990) Modern Administration Course- An analysis of systems and contingencies of administrative functions. Mexico. Lithographic Ingramex SA
Ibid.
Koontz / O'Donnell (1990) Modern Administration Course- An analysis of systems and contingencies of administrative functions. Mexico. Lithographic Ingramex SA
Abad Gonzales, Víctor (2008) Constitution of SMEs. Lime. Editorial San Marcos.
Bahamonde Espejo, Hernando (2000) Practical Theoretical Manual for setting up a company. Lime. Editorial San Marcos.
Rodríguez, Leonardo (1997) Small business planning and management. Mexico. Editorial Continental SA.
Flores Soria, Jaime (2004-b) Financial Administration: Theory and Practice. Lime. CECOF Asesores.
Díaz Bertha and Carlos, Jungbluth (1999) Total quality in the Peruvian company. Lime. Editorial Development Fund of the University of Lima.
Flores Soria, Jaime (2004-a) Financial Management: Theory and Practice. Lime. CECOF Asesores.
Pérez Figueroa E. (2000) Small Business Organization and Administration. Lime. Editing by the author. Third edition.
Bellido S. Pedro (1989) Financial Administration. Lime. Editorial Técnico Científica SA.
Castin Farrero, José María (1996) Financial management in the company. Santa Fe de Bogotá - Colombia. Continental Editorial.
Koontz / O'Donnell (1990) Modern Administration Course- An analysis of systems and contingencies of administrative functions. Mexico. Lithographic Ingramex SA
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
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