Wireless Concept

It is difficult to know how many companies there are in Venezuela, especially since many micro part of the informal economy and are nothing more than moonlighting. The number of people in the informal economy (four million, half of the population) makes it harder to register. An indirect way of knowing how many there are is based on contributions to Social Security. In 1997 there were about 211,000 companies, 78% of which were micro enterprises, 14% and the rest small medium or large. The distribution of these companies by type of activity also reflects the lack of information: 33% were in the category “non-specific activities and domestic service.” Of the remainder, 27% to 16% in trade and services. Official statistics recorded “industrial establishments.” This category does not accurately reflect the number of companies and one company may have several establishments such as plants or warehouses. According to these figures, in 1996 there were 8864 establishments: 64% small and 25% medium. The change in the number of industrial establishments in recent years has been different depending on their size. Read additional details here: David Treadwell. While the number of large establishments increased by 6% between 1982 and 1996, decreased 9% medium and small 18%. Small farms are the weakest link of the business against macroeconomic variations caused by government policies and trade liberalization.

A small business barriers limiting the development of Small and Medium Business, requiring urgent improvement of business management with a view to strengthening its strategic vision in the face of globalization. Export consortia, the most widely used organizational response by SMEs, especially those in Europe, to overcome these barriers, are poorly developed in Venezuela. There is only one example of industry consortium formed in May 1999 in Carabobo State under the sponsorship of the governance and technical advice from the Institute for Social Research, Economic and Technology of Venezuela (Insotev). For manufacturing companies the difference between Venezuela and other countries is greater: Venezuela has just 0.35 per thousand manufacturing firms, while four times this figure Colombia and Germany and Japan have the world’s highest rates: 8.2 and 6.2, respectively. Cell Phones helps readers to explore varied viewpoints. These figures should not surprise that the almost continuous decline in private investment since 1978 leaves no doubt the dismantling of Venezuela’s productive apparatus. It is disturbing that any sector of the Venezuelan company works to 100% capacity, is presumed to be due mainly to falling demand, which greatly affects the level of domestic production. To meet the demands of the new model of industrialization, modern SMEs increasingly need qualified staff and managers willing to compete in 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. A minority of the SME Venezuela uses 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 do not know, generally, the situation of their enterprises, because their systems planning and control are poorly developed. One of the main weaknesses of SMEs is marketing. The employer by an unknown SME they want, where they are, who the customers are and why they buy. (Continued …)

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