Social Research

An indirect way of knowing how many there are is based on Social Security contributions. For example in 1997 there were about 211,000 businesses. 78% of which were micro enterprises, 14% and the rest small medium or large. A typical small industrial enterprises have fewer than 10 workers and an equal number of employees, and is managed by two or three owners, most with secondary or higher education. It does not use unpaid family workers. Half have one or two managers, on the other half, the owner is the sole manager 60% have more than ten years of operation. 17% between six and ten years, and another 17% fewer than six. Weaknesses There is a lack of staff qualified and strategic vision based on knowledge of what is happening in your environment, be a serious obstacle in their development, requiring urgent to improve the management of the business to strengthen its strategic vision in the face of national problems, the Opening Toward Socialism Globalization. There is a lack of qualified management, supported formal knowledge that fosters management science, seriously affecting its jurisdiction, the proper use of their resources, and know the challenges and bring about the changes, changes necessary to ensure productivity and competition.

Another major weakness in exports because they have few limitations organizational, financial and technical, poor knowledge of foreign markets and distribution channels, inability to hire staff specializing in international trade, lack of international agreements, low volume and low variety products, and insufficient financial resources. Remarkably, the export consortia, the most widely used organizational response by SMEs, especially those in Europe, to tackle these barriers are ‘undeveloped in the country. There is only one example of industry consortium formed in May 1999 in the state of Carabobo under the patronage of the government and technical advice from the Institute for Social Research, Economic and Technology of Venezuela (INSOTEV) In the case of manufacturing enterprises the difference between Venezuela and other countries is greater: Venezuela manufacturing firms has barely 0.35 per thousand inhabitants, while Colombia, four times this figure and Germany and Japan have the world’s highest rates 8.2 and 6.2 below in relation. These figures should not miss the almost continuous decline in private investment since 1978 leaves no doubt that the dismantling of Venezuela’s productive apparatus.

It is disturbing that any sector of the Venezuelan company works to 100% capacity, it is presumed that this is due mainly to falling demand, which significantly affect the level of domestic production. Definitely to meet the requirements of the new model of industrialization, modern SMEs increasingly need qualified staff and managers willing to compete with global markets. This leaves little room for traditional SMEs, which produces goods or services of poor quality, as technological innovation is scarce or absent and their managers are reluctant to integrate (horizontally or vertically? With other companies. It is known that a minority of the Venezuelan SMEs use advanced technology, bases its competitiveness in quality of designs, production flexibility and timeliness of deliveries and exports directly or as suppliers of intermediate products for large companies that export. Small businesses would not normally know the status of their companies because their planning and control systems are little developed. Also another great weakness is its marketing. The employer responsible for a small business who want to know where they are, who are the customers and why buy. SMEs do not have in most cases, strategies, financial planning or tax and administration systems are weak, which hurts and affects the bank credit.


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