Corporate governance as impulse to small and medium enterprises
INTRODUCTION
Small and medium enterprises (SMEs) are responsible for the formation of more important jobs and income worldwide and are a key factor in the decrease in poverty and the promotion of the development of a country. They are also responsible for using a large number of workers belonging to the most vulnerable sectors of society, such as women, youth and people of disadvantaged households.
The possibilities that generate, economic and other types can be the response to the social needs of a country. According to (Cleri, 2007) “SMEs are the backbone of national economies. They provide production and employment, guarantee a sustained demand, motorize progress and give society healthy balance ”.
In that sense, SMEs represent a high participation of the business system, and that most companies, although they have followed in the market, have many administrative and management weaknesses because they have carried out their activities empirically, that is,Although many of their businesses were born from brilliant ideas and are financially viable, they survive only based on their experience.
We can also support that mostly SMEs are managed by their owners who in turn have no administrative knowledge, except for some cases of new entrepreneurs who are supported by government programs. By virtue of the foregoing, implementing corporate governance policies points to the guidelines and processes for the implementation of the control and internally management of a company also in emerging societies that in priority need organization and consolidation of all their internal and productive processes, understanding themselves, that the motion of good governance guidelines if it can occur in the business context of micro, small and medium enterprises.
Developing
Therefore corporate governance has been developed through codes of behavior of incorporated as regulation documents within companies. Within these codes in the international areand the means to achieve these objectives and supervise performance are determined ”(OECD, 2016).
Colombia, consistent is not alien to the concept of corporate governance and although there are few SMEs that make use of this tool, they are gradually added to global efforts to raise corporate governance standards of local companies. Through a survey conducted by the (Financial Superintendence, 2008) and leads by the Ministry of Commerce, Industry and Tourism called “Social Responsibility and Corporate Governance Survey” that sought to measure the dissemination and implementation of social responsibility and good governance practicesCorporate in the societies of the sector.
For its part, the (Superintendence of Societies; Chamber of Commerce of Bogotá; Confecámaras, 2009) through a corporate governance guide for closed and family societies an approach that seeks to give an additional and demonstrable value to the entrepreneur to adopt these measuresthat contain recommendations on good corporate governance practices, in order to promote this institution in Colombian companies within the framework of capital market deepening and increased the profitability of their company, mitigating the risk factors that have been diagnosedas of greater incidence in closed and family societies in our country.
From the foregoing and continuing the trend of the country, the little application of the principles of corporate governance by the small and medium enterprises of the Department of Cesar can be presumed, based on the fact that the identified weaknesses refer to the lack of technical training andadministrative with which SME entrepreneurs begin their businesses and that is why we see how most close their operations during their first years of work.
Then the above results show that good corporate governance develops and shows a change in the circumstances of an SMEs and therefore, the company must be adapted in its organization to satisfy the circumstances that occur in its evolution. To do this, the best principles and practices must be applied and those that already apply must evolve to the rhythm that the others do so.
In this way for the above, the participation of the appropriate actors is required so that these useful principles begin to be part of the new culture of administration in SMEs and ensure that life time goes to more than the second generation issay extend the longevity of these. In short, the advantages and benefits obtained by implementing the principles of corporate governance are of great use, and the essential is the opening to financing and growth of the company.
According to what has been said above, the following question arises, how are the principles of corporate governance implemented by SMEs?. For this reason, this investigation is carried out in order to analyze the principles of corporate governance applied to small and medium enterprises, which seeks to establish the administrative advantages and benefits obtained by implementing principles of good corporate governance in this type of companies,As a consequence, there will be the possibility of having more profitable companies and long.
Corporate governance
It can be arduous drawing a line between what is considered good or bad of corporate governance, since there are different positions depending on the direction. In that sense (De Paula, Ferraz, & Núñez, 2006) explain that:
Corporate governance includes public and private institutions of a country, formal and informal, that regulate the relationship between controllers, that is, actors who really control and manage companies, on the one hand, and those who, on the other, invest theresources in them. The study argues that informal institutions, such as business ethics and tacit behaviors, are highly relevant in determining true daily business practices. Also that good corporate governance systems are more important for long -term economic growth than what is usually recognized.
According to the above, one of the main roles of corporate governance is to establish how companies can level the interests of shareholders, collaborators and clients, and in turn determine the advantages and disadvantages that certain corporate governance practices implies.
For its part (OECD, 2016), it establishes that “corporate governance covers a set of relations between the administration of the company, its board of directors, its shareholders and other interested parties.”In the same way it also provides the structure through which the company’s objectives are set and the means to achieve these objectives and supervise performance are determined.
Similarly (Vasquez Velez & Dorado Paz, 2016) defines “corporate governance is the system by which the management and control of companies” in a more extensive sense is exercised, it states that corporate governance in companies seeks to safeguardThe balance between economic and social objectives and between individual and community objectives, with the purpose of provoking the effective practice of resources and in the same way, request that accounts be paid by the management, to achieve the greatest degree of transparencypossible among the interests of individuals, companies and society.
In that sense, the implementation of corporate governance programs in SMEs turns out to be a determining tool in the growth of companies and in overcoming crisis. However, that a company has a governance scheme, it does not mean that it is framed within corporate good governance codes. They will only be classified as such measures that allow companies
Principles of corporate governance:
- Transparency
- Equity
- Legitimacy
- Diligence
- Corporate Social Responsibility
- Leadership
- Probity
- Efficiency
INVESTIGATION METHODOLOGY
The present study is documentary. (Arias, 2012), states that documentary research “is a process based on the search, recovery, analysis, criticism and interpretation of secondary data, that is, those obtained and registered by other researchers in documentary sources: printed, audiovisual or electronic". To successfully carry out the investigation, the definition of the requirements is required through a documentary foundation, which allow support and greater veracity to the study carried out and obtain new knowledge for the analysis of the same.
As for the research design, the study is limited to the bibliographic design, which in the words of (Tamayo and Tamayo, 2013) consists of:
… The use of secondary data, that is, what have been obtained by others and arrive elaborated and processed according to the purposes of those who initially prepare and manage them […] It is the investigator’s work to ensure that the data he handles throughbibliographic sources is a guarantee for design.
CONCLUSION
Therefore, the documents represent the units of analysis that support the investigation from the interpretative argumentative fact required by the analysis of the problem conceived, including printed and digital documentary sources online (books, scientific articles, essays, as well as critical, underlined apparatus, underlined, text margin, session notes). They were interpreted and analyzed and then contrasted with the empirical assumptions outlined in the introductory segment.
BIBLIOGRAPHIC REFERENCES
- Arias, f. (2012). The research project: Introduction to scientific methodology. 5th. ed. Caracas: Editorial Episteme.
- Cleri, c. (2007). The book of SMEs. Buenos Aires, Argentina: Granica S editions.A.
- From Paula, G. M., Ferraz, j. C., & Núñez, G. (2006). Corporate governance, social responsibility and business strategies in Latin America. Bogota: Mayol Editions S.A.
- Gutierrez Gonzalez, M. (2006). Corporate Governance A strength for Colombian SMEs to face the internationalization of markets. Corporate Governance A strength for Colombian SMEs to face the internationalization of markets. Bogota, Cundinamarca, Colombia.
- OECD. (2016). Principles of OECD and G20 corporate governance. Paris: Ocde Éditions.
- Superintendence of Societies;Bogotá Chamber of Commerce;Made. (2009). Colombian corporate governance guide for closed and family societies. Bogotá.
- Financial Supervision. (2008). National Corporate Governance Survey. Bogota: Superintendence of Societies.
- Tamayo and Tamayo, M. (2013). The process of scientific research. Mexico: Editorial Limusa.
- Vasquez Velez, S., & Dorado Paz, M. (February 20, 2016). Corporate Governance in SMEs. Corporate Governance in SMEs. Santiago de Cali, Valle del Cauca, Colombia.
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