COMPLEMENTARY ACTIVITY No.

3
ADMINISTRACION FINANCIERA

ING. LUZ SANTOS

CLAUDIA MARITZA ACOSTA FRANCO - COD: 7304053

MAYRA ALEJANDRA MUR ROJAS – COD: D7304051
NATALY JULIETH MANRIQUE SÁNCHEZ – COD: D730437
MICHAEL FERNANDO CHAPARRO – COD: D7304370

UNIVERSIDAD MILITAR NUEVA GRANADA

FACULTAD DE ESTUDIOS A DISTANCIA
INGENIERÍA CIVIL
BOGOTÁ D.C, MARZO
2021
 INTRODUCTION

The economy has been characterized by global behavior in recent years, which have
become opportunities for all nations in continuous growth. Companies have been
transformed into productive mechanisms since they are always in constant growth
with an ever higher and more competitive quality commitment. In this essay called
Generation of a company in Colombia and growth of MSMEs, we intend to present
the dynamics of our country in regulatory and public policy terms.
 BUSINESS GENERATION IN COLOMBIA

The Colombian industry consists of all the firms transform the inputs into a final
goods for the consumption of the Colombian or in other markets where the goods are
exported. Also, by the companies that provide the inputs or elements of the value
chain of the previous ones.

Throughout history, the country's economy has been stigmatized by the history of
conflict and the internal and external perception that has been had around the
production of illicit drugs and crops. However, in order to combat this and refocus
Colombian industry, great efforts have been made to incentivize the productive sector
, manufacturing, agriculture, among others; This is how according to the DANE, in the
country the economy is based on agriculture, livestock, hunting, forestry, mining,
manufacturing, electricity supply, gas, steam and air conditioning, construction,
wholesale and retail trade, information and communications, financial and insurance
activities, real estate activities, professional, scientific and technical activities, public
administration, defense, education and health, artistic activities , entertainment and
recreation and other service activities. (DANE,2020). This demonstrates how varied
the economy is and the broad possibilities for business generation that should exist.

It has been shown that in Colombia people are interested in generating jobs,
innovating, growing in industry and therefore having a high rate of entrepreneurship;
Even, "the Colombian Confederation of Chambers of Commerce (Confecámaras)
revealed that, during the fourth quarter of 2020, the creation of companies in the
country increased by 23% compared to this same period in the previous year"
(Infobae, 2021). This shows that, despite the current juncture of the global pandemic,
the economy is reviving and undertaking is an effective way to do so.

Despite the above, Colombia has high import rates, as according to the DANE "in
April 2020 there was a decline of 31.6% in Colombian imports compared to 2019.
From USD CIF 4.528 million to USD CIF 3.097 million respectively." (ANALDEX,
2020). What matters most are vehicles, telecommunications equipment, oil and its
derivatives, machinery and industrial equipment in general, iron and steel, among
others. Despite the decline, according to the same source there was an increase in
the export of fertilizers, sugars, honey and materials and chemicals. The group of
agricultural products "represents 16% of total imports by January – April 2020 with a
variation of 6.2% compared to 2019. The most important products that contributed
the most to the variation are: cereals and cereal preparations, which grew in the
period 17.7%, along with sugars, sugar preparations and honey with a growth of
49.4%. Coffee and its preparations were reduced, as they had a variation of -31.4%."
(ANALDEX,2020)

It is incredible that a country like Colombia foster the import of agricultural products,
because it is clear that domestic production would be a better strategy, however, the
government does not support the local economy and on the contrary creates
difficulties for businessmen causing high unemployment rates and premature failure
of ventures, "according to an analysis published by Confecámaras , in the countries
of the Organization for Economic Co-operation and Development (Oecd), more than
half of start-ups fail in their first five years of life. In the first year alone, between 20%
and 30% of them disappear" (La República, 2020), possibly this is due to lack of
government support and the few organizational strategies that companies possess, in
addition, financial education is an not show issue and therefore also poses a difficulty
for business momentum.

"Looking of the development of the national economy, Colombia has participated and
participates in important economic communities such as MERCOSUR, UNASUR,
IDB and the ANDEAN COMMUNITY". (Diaz, F. 2011) In addition, it has also
generated free trade agreements that allow the import and export of different
products.

The country is recognized for the export of products such as coffee, sugar cane,
flowers and other agricultural products and also for the emerald mining that
represents significant income to GDP.
Another reason for the failure of local companies is the high credit rates offered by
banks, usually investors exceed their borrowing capacity and cause premature
bankruptcy of their organizations, the Colombian government does not offer sufficient
aid or bank benefits to entrepreneurs or new entrepreneurs and that limits the
country's economic growth.

In Colombia, it has been possible to reduce the procedures necessary for the
formalization of companies, currently the country has a network of centers of
business attention that allow to move from 17 procedures to 2 procedures, this as a
result of the start-up and operation of the CAE project that allows the development of
companies.

For the generation of a enterprises, it is necessary to have useful tools, information

and advice that can be found in the chamber of commerce, additionally, formal and
authenticated documents must be presented in notary, the requirements are basic
which facilitates the procedure. It is also necessary to be clear about the availability
of the name for the company, the legal representative, what type of company you
wish to set up, or if you are a branch of a foreign company. Additionally, it is
necessary to establish what is the social object or economic activity that will be
developed by the organization and the capital with which it will be constituted, who
will be the partners and shareholders and who will form the board of directors, after
this you will obtain the tax identification number or NIT (by the spells on Spanish) that
will be the identification of the company and this may start the performance of your
activities. Generally speaking, create or generate a company in Colombia is not
difficult, but the social and economic environment does not offer advantages for the
local investor and many companies fail, ideally more government support and
incentives that allow the growth and momentum of entrepreneurs.
 PYMES

Small and medium-sized companies are a certain that has more contribution
important in terms of job creation. They are characterized by their low innovation
capacity, low use of ICTs, limited financial access adequate, problems for the
commercialization of the product and obtaining inputs, limited participation in the
public procurement market.

The State, observing these situations, has tried to contribute to the improvement of
the operating conditions, for this it has implemented a program for the reduction of
business procedures, reduced inflation rates supporting the existing ones and
managing a national competitiveness policy.

ID OF AUTHENTIC

can come in very shapes and sizes.varied; however, in the complex environment
current business, they can keep close financial, operational or governance
relationships with other companies. These relationships often make it difficult to draw
a clear division between SMEs and larger companies. The SME definition is a
practical tool designed to help SMEs to identify themselves as such, so that they can
receive all the support provided by the EU and its Member States for these types of
companies.

One of the main objectives of the SME Recommendation is to ensure that companies

Pymes aid is granted exclusively to those companies that need it in a way genuine.
Consequently, the definition of SME applies to all programs, policies and measures
aimed at these types of companies that develops and manages the European
Commission. It also applies to certain types of aid state for which there are no
guidelines.
Bibliographic references

- DANE. (2020). Boletín Técnico PIB Colombia. Disponible en:

https://www.dane.gov.co/files/investigaciones/boletines/pib/bol_PIB_IVtri
m20_producion_y_gasto.pdf

- Dawson, R., Hough, J., Hill, J., Winterford, B., & Alexandrov, D.
(2009). Implementing Enterprise 2.0. Sydney: Advanced Human
Technologies.
- Díaz Vitola, F. (2011). Análisis de la participación de los sectores
económicos o productivos de Colombia en los mercados globalizados.
Disponible en: https://biblioteca.utb.edu.co/notas/tesis/0061661.pdf

- Diario La República. (2021). Los tres factores que aumentan el fracaso de

los emprendedores en Colombia. Disponible en:
https://www.larepublica.co/alta-gerencia/los-tres-factores-que-
aumentan-el-fracaso-de-los-emprendedores-en-colombia-2846985

- Infobae. (2021). En Colombia aumentó en un 22% la creación de empresas

en el último trimestre de 2020. Disponible en:
https://www.infobae.com/america/colombia/2021/01/14/en-colombia-
aumento-en-un-22-la-creacion-de-empresas-en-el-ultimo-trimestre-de-
2020/
- Rincón, N. (2020) Informe de Importaciones Colombianas enero-abril
2020. ANALDEX. Disponible en:
https://www.analdex.org/2020/07/02/informe-de-importaciones-
colombianas-enero-abril-de-2020/