ADMINISTRATION I Text book

Servulo Anzola Rojas

OF
Mc Graw Hill Publishing.
First Edition, CUSTOM.
Exclusive IDEA student material

SMALL BUSINESSES
3 ee
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CHARACTERIZATION AND
ORGANIZATION

FROM THE SMALL BUSINESS

LATIN AMERICAN.

Week 2
CONTENT
# BEING ADVANTAGE DISADVANTAGE
EMPLOYED
1. Greater experience 80% 20%
2. Less concern 74% 26%

Unit
3.
2.
Lower risk 74% 26%
4. Economic security 66% 33%
• Small business characteristics
5. Regular vacation 66% 33%
• Establishment of small business in Latin America
6. Less responsibility 53% 47%
• 7.Advantages of the Latin American50%
Fixed schedule small business 50%
• 8.Factors
Workfor the development of small
safety 50%Latin 50%
Dependence
9.American businesses 25% 75%
10. Routine 10% 90%
Adapted from table 2.1 – Advantages and disadvantages of being
an employee.
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CHARACTERISTICS OF THE SMALL BUSINESS

Administration Radio of
independent operations,
- owners and
Managers employees
owners local For someone
k TO or by a group
little
Contributed capital

If you meet at least two of these, you are considered a small business.

Small business: business in which the owner is

autonomous in its management, does not dominate in its field of operation
in terms of the number of employees or sales volume.
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CHARACTERISTICS OF THE SMALL BUSINESS
• Some experts have also identified:

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ESTABLISHMENT OF SMALL BUSINESS IN
LATIN AMERICA
• You can think of them as the backbone of the
economy, represent 95% of businesses and more than one
80% employment; In addition to avoiding monopolies, they
free
enterprise.
encourage

How do you start small business ownership?

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ESTABLISHMENT OF SMALL BUSINESS IN
LATIN AMERICA

• The most common reasons for proposing to start are:

unsatisfied market, poor service from the competition or that

the market demands it; but it is very likely that the decision

will be made more based on a hunch and not on feasibility

studies.
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ESTABLISHMENT OF SMALL BUSINESS IN

LATIN AMERICA

• The actions that together can help at the beginning of

operations are: skill and capacity (which guide the hunch) and

the desire to undertake, as a complement to commitment and

initiative.

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ESTABLISHMENT OF SMALL BUSINESS IN
LATIN AMERICA

• Overconfidence leads us to not plan; Sooner or later the

consequences will arrive in the form of frustration because
sales do not happen as easily or as quickly as thought, wrong
processes, almost non-existent cash flow and loneliness among
others.

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• Growth Some factors
that affect
•Utilities the
performance
of a small
•Financial support business are:

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 LATIN AMERICA
•Economic development policies

•Development policies

By Frits Ahlefeldt

•Legal aspects Company

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ESTABLISHMENT OF SMALL BUSINESS IN
LATIN AMERICA
Planning Short term = 1 year
Medium term = 1 - 3 years
Management Long term = 3 - 5 years or
more
Production
Attention to production but not to maintenance

Finance
Slight planning, no control

Forecast = estimate
Control
Using "common sense" verbal guidelines

Human Resources
Internal regulations, functions = work logic

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ADVANTAGES OF THE SMALL LATIN
AMERICAN BUSINESS
1. Ambition = working overtime

2. Decision making = more agile

3. Risks = are seen as a challenge

4. Adaptation to the crisis = simultaneous adjustments

5. Sense of unity = belonging, especially if it is a family business

6. Market insight = get quick information and adapt

7. Operation = autonomous and flexible, production = small scale

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FACTORS FOR THE DEVELOPMENT OF THE
SMALL LATIN AMERICAN BUSINESS

1. Develop an environment that facilitates growth

egalitarian bases.

2. Adapt to the current environment.

3. Adopt growth strategies focused on exports.

4. Cooperation between companies (network).

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 CONCEPTS TO REVIEW
You can find them in this summary, in the presentation or in the textbook, the
intention is that, in a second reading, you can underline or annotate them to
reinforce weekly the study of the theory that will come in the final exam.

• Small company
• Nepotism
• Planning time (deadlines)
• Forecast
• Advantages of the Latin American small business
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 RECOMMENDATIONS FOR TASKS:

• The review process includes three fundamental

aspects: plagiarism (do not copy/paste), structure
(requirements) and form (content). Every task must
be written based on what has been researched. Research is not
synonymous with copying information; Doing so is considered
plagiarism (computer or bibliographic). As many points will be
subtracted as matches are found; That is, your rating will be affected
proportionally to the percentage of matches found.

Continue reading in your textbook, this material is complementary.

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