CAUSES OF THE GROWTH OF PYMES IN COLOMBIA

MEMBERS
YHINDEISI FARFAN RICO
JULIAN DAVID ESTUPIAN
MARLENY BUCURU CONDE

TEACHER
CATALINA NORATO

FUNDACIN UNIVERSITARIA MONSERRATE

SCHOOL ADMINISTRATIVE AND ECONOMIC SCIENCE
PROGRAM FINANCE AND INTERNATIONAL BUSINESS AND BUSINESS
ADMINISTRATION AND ENVIRONMENTAL MANAGEMENT PROGRAM
2015

Contenido

INTRODUCTION..............................................................................................................3
GENERAL OBJECTIVE...................................................................................................4
SPECIFIC OBJECTIVES.................................................................................................4
THEORETICAL FRAMEWORK....................................................................................4
ANALYSIS..........................................................................................................................5
CONCLUSIONS.................................................................................................................6
BIBLIOGRAPHY...............................................................................................................7

INTRODUCTION

Due the unemployment rate decreased by a good percentage in Colombia (according to

information available in the media); and every day more people are looking for ways
used, but not to undertake not to risk their enterprises to go bankrupt; hence the idea of
investigating the causes and variables by which pymes do not achieve sustained and
sustainable growth in the market so that there are more jobs in Colombia was generated;
Columbian state companies that have generated programs but still entrepreneurial
companies do not last more than three years on the market
In this way we want to investigate what guidance is not given to small businesses in
Colombia to find ways of how used.

GENERAL OBJECTIVE
Know the reasons why, in Colombia, the small businesses do not last on the time and also
because they can not compete in the market with big companies.

SPECIFIC OBJECTIVES

1. Research about the opportunities for businesses in Colombia to grow in markets.

2. Make a chronological order about the variation of the Colombian economy to its
impact on small businesses.
3. Interview a small business owner to know their point of view against the
opportunities offered by the market.

THEORETICAL FRAMEWORK

Current challenges of Colombian companies

Most studies on this subject are focused on the inner workings of the internal
organizations but there are several causes such as elements of national and international
environment (Universidad Rosario. 2014).
Companies in Colombia tend not to grow and not to have strategies with technology
generating unexpected increases and be on the market for competing with other
companies.
Juan David Lorduy(2015), says that in this context about business durability, based on the
case of footwear Jovical, it is a recognized company in the leather and footwear industry
in Colombia. This enterprise was in a hard financial situation because the crisis that
developed in 1997 year in Colombia, which appeal to the innovation and differentiation
strategies as the production of industrial boots and shoes, thisallowed themto go one step
ahead of their competitors in developing into a leading footwear industry in Colombia.
Thus, the research is directed at everyone who ever listened, applied or want to believe in
the idea that every crisis is a problem or as in this case, an opportunity to emerge and
endure.
We found that most Colombian companies are new and middle age: 30.5% are new
companies (0-4 years), 55.8% in middle age (5-24 years) and 13.7% they are mature (over
25 years). They have on average 12.5 years and are distributed in the following sectors:
services, 45.6%, with an average age of 12 years; trade, 23.5% and 12; industry, 13.3%,
and 15; construction, 11.0% and 10 years; agriculture, 4.8% and 15, and mines, 1.8% and
8 years. (Portfolio, 2012)
The strong and durable company needs infrastructure, and strengthening education for
market, these are the main issues that the country should focus on.
Causes of liquidation of Colombian companies:

high debt
reduction sales
lack of staff

The pymes in Colombia are important for the development of economy and social
the country though exist studies about the development pymes, additionally
environment the competition is difficult for many companies.
Factors that avoid to pymes expand:

necessity
motivation
personal
funding
location
market study

ANALYSIS

It is known that many entrepreneurs people have dreams for create

business even with

the necessary resources to invest but don`t have enough knowledge, skills to generate
new ideas, strategies, an general objective and elaboration of a schedule of activities;
although some small companies have these parameters in their business plans but not
often being revised in order to validate that they are complying; besides not being
analyzed the internal and external environment so that the necessary changes within the
organization as the product or service offered as in the Mission and Vision ; these
companies need to be innovating according to the results produced a market study.
Governmental organizations working with entrepreneurship in the country only dedicated
to dictate and explain theories, market research, mission, vision, strategies establishments,
and even to evaluate

projects in the companies, entering the market, this is very

representative for these, but this activities must be supervised by government companies.

With experts in marketing sincemany entrepreneurs want to do everything in their

companies because of scarce resources to hire professionals with expertise in different
areas. This is one of the causes of failure of PYMES in Colombia.
Companies have obligations to the state and pay taxes as IVA and employment generation
and also CREE (tax equity); and theemployees also must pay withholding tax, IVA and
even rent tax;all this would be possible if the country is industrialized, andif there is full
employment but if the state does not help small businesses to emergeand to achieve
stability.

CONCLUSIONS

The new enterprises in Colombia have a hard work for enter into the new markets,
because in particular moments these businesses have to invest in market study to growth
as company.

The government in Colombia does not offer guarantees to new enterprises, for example
with facilities in loans, capital of work or advice, for these reasons the small business do
not have confidence to start his project.
The small business has a great advantage, these enterprises have fresh ideas and know the
new needs of the people, and this mean a great opportunity to open new markets.

BIBLIOGRAPHY

Lourdy .J (2015). Desafos actuales de las empresas en Colombia. Recuperado de:

http://www.urosario.edu.co/urosario_files/ee/ee035291-3f52-4d8a-8eb4c5d3d22914e5.pdf
Rodrguez. A (2003).La realidad de a la Pyme Colombiana; Desafo para el Desarrollo.
Recuperado de:https://books.google.com.co/books?
id=z8K6AAAAIAAJ&dq=editions:ISBN9583352780&hl=es
Portafolio (2012). Pymes de Colombia son las ms optimistas de la regin. Recuperado
de:
http://www.portafolio.co/economia/economia-colombiana-crecera-41-2013-y-50-2014