DOMINICAN REPUBLIC

Autonomous University of Santo Domingo

Primacy of America
Founded on October 28, 1538
Faculty of economics and social sciences
UASD Center
School of Administration`
Graduate Division

PRELIMINARY PROJECT OF THE THESIS MASTER IN BUSINESS

ADMINISTRATION

ISSUE:

Organization and Accounting Process of MSMEs in the services sector

Supporter:
Disneyda Mateo Medina

Teacher:
Yaquelin A. Inoa Tatis

Coordinator:

Nancy Alonzo

Date
October 2019
 Issue

Organization and Accounting Process of MSMEs

in the services sector
 Preliminary thesis draft index

Introduction 5
Chapter I General framework of the research

Research background 6
Justification 9
Delimitation of the investigation 9
Demographic limits 9
Geographic limits 9
Scopes 9
Contributions 9
Problem Statement 10
Problem formulation 10
Systematization or research questions eleven
General objective eleven
Specific objectives eleven
Variables 12
Hypothesis 13

Chapter II Frameworks of reference

Contextual framework 13
Theoretical framework 14
Philosophical-anthropological Framework 16
Social framework 16
Legal framework 17
Conceptual framework or definition of terms 18

Chapter III Methodology or methodological design

Information sources 19
Kind of investigation 19
Research focus twenty
Method used in the research twenty
Research techniques twenty
References

Annexes

Tentative index
Schedule
Budget
 Acronyms

MSMES: Micro, small and medium enterprises

RUC : Single Taxpayer Registry

ICT: Information and communication technologies

GDP: Gross Domestic Product

DR: Dominican Republic

FONDOMICRO: private Dominican institution dedicated to promoting access to credit

for micro and small businesses in the country

MDG: Millennium Development Goals

ONE: The National Statistics Office

CODOPYME: The Dominican Confederation of Small and Medium Enterprises

DGII: General Directorate of Internal Taxes

 Introduction

Small and medium-sized businesses represent one of the basic pillars of the national

economy. Their participation in the development of the country is transcendent, and if it

has the necessary support it could be the solution to the economic and unemployment

problems of large population centers that are occurring in the country but the lack of

organization and compliance with organization and accounting process in MSMEs, the

inadequate organization and non-application of the accounting process leads to the

reduction of the company's profits, not providing timely provision for decision making

and the payment of high overestimated taxes .

MSMEs emerge as a socioeconomic phenomenon that seeks to respond to many

of the needs of the poorest sectors of the population. In this sense, they became an

alternative to unemployment, low economic resources, and the lack of opportunities for

personal development. But, despite these benefits, the sector has not yet managed to

reach its maximum potential, due to a series of factors, such as the lack of financial

support and the little real relevance that the governments in power have given it in their

development agendas. work, this research coast of 3 chapter; which are the general

framework of the research, frames of reference and methodology or methodological

design.

5
 Chapter I General Research Framework

Research Background

Flores, (2012), carried out the research: Design and implementation of a tax and

payroll accounting system applied to the texdura microenterprise, Central University of

Ecuador, Faculty of Administrative Science, Ecuador. The investigation reached the

following conclusions:

The Texdura microenterprise does not have an Accounting System that allows

the timely and automated recording of financial information for correct decision

making, because they are kept in spreadsheets. The staff in the accounting-financial area

of the microenterprise does not have updates regarding tax and labor reforms, which

causes an erroneous presentation of information to the control agencies. The Texdura

microenterprise does not have an adequate schedule for the preparation and presentation

of monthly Financial Statements, causing management to make bad decisions.

Chenet (2017) conducted the research: Accounting in Gamara's Mypes,

Universidad Peruana de las Americas, Lima Peru. The investigation reached the

following conclusions:

Many entrepreneurs have problems requesting bank loans, due to the

aforementioned informality, which does not allow them to grow their business. Many

times they are forced to make loans to third parties with very high interests, which

further harms the lack of financial solvency.

Ortiz (2016), explanatory factors of failure and success in microenterprises in

the Dominican Republic: an empirical study , Polytechnic University of Cartagena,

Faculty of Business Science, Cartagena, Spain. The investigation reached the following

conclusion:

6
 The results showed that the most successful companies are owned by individuals

with more entrepreneurial psychological profiles and a vision of the future and who are

involved in the daily management of the company. Furthermore, proper administrative

management of the business strengthens the probabilities of success, as well as

increasing the capabilities of workers through education and training in accounting and

administrative processes. ICT does not have a greater link with business success and

access to bank credit at the beginning of the business can positively impact the success

of the company.

De León (2017), carried out the research: Research proposal for a document

management system for development and productivity in SMEs Case: Lopperzut

Tecnology SRL , APE University, Santo Domingo, National District. The investigation

reached the following conclusion:

Regarding SMEs, it is necessary to strengthen the participation of the company's

collaborators towards file management, this will direct the company to continuous

improvements and information processing with a superior approach. Decision-making

in management will depend on timely information, following up on the implemented

processes and the reception and understanding of collaborators on how to make the

search for information more efficient. With the implementation of a Document

Management system, SMEs position themselves in the field of the digital system and

contribute to the quality of services for both the user, client and decision-making.

The aforementioned background provides my research with key points that must

be taken into account when SMEs make the decision to organize themselves and

implement the accounting processes as they are; Accounting System that allows the

timely and automated recording of financial information for correct decision making, an

7
adequate schedule for the preparation and presentation of monthly Financial Statements

causing management to make bad decisions, strengthen the participation of the

company's collaborators towards file management, these will direct the company to

continuous improvements and information processing with a superior approach and that

In addition, the proper administrative management of the business strengthens the

chances of success, as well as increasing the capabilities of the workers from of

education and training in accounting and administrative processes.

8
 Justification

The current research, the purpose of the study is to generate reflection and

academic debate on existing knowledge Bernal, CA, (2010), through the knowledge and

application of accounting, business and financial processes, find explanations for the

different internal situations of MSMEs that They hinder their efficiency in their

administrative and financial management, which limits and hinders the development of

these organizations.

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 Delimitation of the Investigation

Boundaries

Demographics: SMEs in the service sector in the law offices of the Julieta sector

Geography: Dominican Republic

Temporary:

Scopes

Contribution: clarify the importance of having organization and accounting processes

in MSMEs.

Utility: Growth and stability in MSMEs.

10
 Problem Statement

description of the problem

According to Santana (2018) MSMEs in the DR and their role in the economy
Retrieved from https://acento.com.do/2018/opinion/8609603-mipymes-la-rd-rol-la-
economia/ Indicate that SMEs by its High informality in the sector, limited access to
credit in the National Financial System due to lack of real guarantees of this type of
companies, for which they have to assume high financial costs, in addition to operating,
distribution and marketing costs, a inflexible tax system, poor management and
personnel capacity in its organizational structure, poor technological level, limited
insertion in the local market and international markets, which generates a little dominant
position in the consumer market, given its individual scale and a high marginality and
high mortality.

However, these small and medium-sized entrepreneurs are also the ones who

suffer difficulties related to the high cost and inadequate management of accounting

processes, which makes it impossible to expand their business base and prevents its

growth and stability.

11
Problem formulation

Is there compliance with the organization and accounting process in MSMEs in the

service sector?

12
Systematization or research questions

1. How to apply accounting processes in MSMEs?

2. 2. Why is the accounting process important in the development of MSMEs?

3. What are the benefits of having an organization and accounting processes in

MSMEs?

13
 Goals

General objective

Determine if there is compliance with the organization and accounting process in

MSMEs.

Specific objectives

1. Identify accounting processes in MSMEs.

2. Study the influences of the accounting process on the development of MSMEs.

3. Verify the benefit of having an organization and accounting processes in

MSMEs.

14
 Variables

Independent

Inadequate distribution of dividends and presentation of high profits

Dependents

Reduction in company profits and payment of high taxes. Overestimated.

15
 Variables and Indicators operationalization table

Specific Definition of
objectives Variables Variable Variables Dimension Indicators
The accounting
process is a cycle
through which all
the operations
carried out in a Process, registration,
company throughout operation, Economic Year
Identify the the financial year
accounting Use of are recorded and
processes in accounting processed Accounting
MSMEs process (Picazo,2012) process
Know the financial
situation, reflect the
organization and
make decisions for
your company
Know financial
information in real
time, clear and
concise
Control expenses
and costs
Efficiently manage
the resources
benefit of having Benefit of the available
an organization organization Prepare a business Control of expenses and
and accounting and the plan and make costs, Improve cash flow,
processes in accounting projections Business decision making, Proper decision
MSMEs process (Omeñaca 2017) Business plan. making

Own elaboration

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 Hypothesis

Determine if there is compliance with the organization and accounting process in

MSMEs, inadequate organization and non-application of the accounting process leads to

a reduction in the company's profits, failure to provide timely provision for decision-

making and the payment of high overestimated taxes.

17
 Chapter II Frames of reference

Contextual Framework

Santana (2018) MSMEs in the DR and their role in the economy Retrieved from

https://acento.com.do/2018/opinion/8609603-mipymes-la-rd-rol-la-economia/ reflects

on SMEs and the society in the following way Micro, Small and Medium Enterprises, in

the Dominican Republic, like the rest of the world, have a determining influence on the

economic evolution of nations, in addition, playing a very important role in cohesion

social, contributing significantly to the generation of jobs, income, eradication of

poverty, while energizing national productive activity, thus collaborating with the

regional, sectoral, economic and social development of our countries .

In the Dominican Republic there are 1.4 million MSMEs that represent 98% of

the total number of companies, generating 2.2 million jobs in the economy, which is

equivalent to 54.4% of the population employed in the labor market, contributing a

significant percentage to the GDP 38.6 %, of this total of companies, 50.98% are

located in fixed premises, 26.78% are located in mobile premises, 21.70% belong to the

agricultural sector and only 0.55% belong to the fishing and mining sector, according to

the report management 2015-2016 MSMEs

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Theoretical framework

Organization

According to Velásquez (2015), the organization is an organic system immersed

in a hostile environment with which energy, material, information and money are

exchanged, that is, the organization is an open socio-technical system, which has input

relationships. (inputs), outputs (products) and feedback or return cycles to modify the

system itself, in structure, operation, function or purpose, allowing its permanence over

time, in addition to internal processes of readaptation, construction and self-repair,

which allow it interact appropriately with an environment.

Ontoria (2017) states that organization is a term that is used in different senses

and fields, for example, to refer to the activities that a group of people will carry out.

But we are interested in the meaning of this word in administrative terms. Thus,

organization, according to most Administration scholars, is a formalized structure of

functions and positions designed in advance.

This same author tells us that organization is the structuring of the relationships

that must exist between the functions, levels and activities of the material and human

elements of a social organism, in order to achieve maximum efficiency within the

indicated plans and objectives.

For Reyes (2018), Organization is the structure of the relationships that must

exist between the functions, levels and activities of the material and human elements of

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a social organism, in order to "achieve maximum efficiency within the indicated plans

and objectives." .

González, Sánchez (2019), clarifies that organizing is grouping and ordering the

activities necessary to achieve the established purposes by creating administrative units,

assigning, where appropriate, functions, authority, responsibility and hierarchy and

establishing the relationships that must exist between said entities.

This same author tells us that organization is the coordination of the activities of

all the individuals that make up a company; with the purpose of obtaining the maximum

possible use of the material, technical and human elements, in achieving the purposes

that the company itself pursues.

Morón (2014) states that the organization is such an important concept that it

implies everything that foresees or plans what the company should be, consistency and

continuity as all its elements or resources are in continuous change (expansion,

production, hiring, etc. .), and the way to achieve business objectives by telling how to

carry out business activities efficiently, making the most of resources and with

minimum effort.

Also, the organization is a social entity because it is made up of people, and it is

goal-oriented because it is designed to achieve results, for example, making profits,

providing social satisfaction, etc. It is deliberately structured because it divides the

work, and its execution is assigned to the members of the organization. In this sense the

word Organization means: Company.

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 This same author tells us that the company is a social system in which a set of

people and means are integrated with which to achieve objectives. The effective

achievement of these objectives requires an organization that makes possible the

coherent coordination of all the means and people that are part of it.

Types of organization

According to Reyes (2018), the types of organizational structures are:

Linear or military organization: Authority and responsibility is concentrated in a

single person, that is, each person has a single boss (command unit). Decisions are made

by a single manager, and communicates them to a subordinate, who in turn also makes

decisions and communicates them to the next level, and so on until reaching the last

level in a single line.

Functional or Taylor organization: The functional organization or also called

Taylor (since it was Taylor who, upon realizing that linear organization prevented

specialization, looked for another form of organization), as its name indicates, what it

seeks is to reduce the minimum of activities or functions to be performed either by a

manager, a supervisor or a worker, in order to divide labor and thus achieve

specialization.

Lineo-functional organization: In this type of organization, the types of

line and functional organization, with the intention of taking advantage of the

advantages offered by both one and the other, for example in the linear, the line of

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command is very clear (principle of unity of command), but from the functional we can

precisely rescue that division of labor that leads us precisely to specialization.

Staff organization: As activities within organizations become more complex, and

as technology now surpasses us, it is necessary to have experts or specialists who,

without having direct authority within the organization, over subordinates , “advise”

according to their knowledge, skills and experiences to the managers or those in charge

of the departments so that they make the decisions that are considered most appropriate.

Organization by committee: The organization by committees occurs when it is

decided to assign administrative matters to a group of people, who in turn will be in

charge of resolving various issues or problems that arise within the organization, thus

forming groups of committees.

For Smith (2010), organizations are extremely heterogeneous and diverse,

therefore, they give rise to a wide variety of types of organizations. However, and after

reviewing specialized literature in administration and business, I consider that the main

types of organizations classified according to their objectives, structure and main

characteristics, are divided into:

Organizations According to Their Purposes, that is, according to the main reason

they have for carrying out their activities. These are divided into:

For-profit organizations: Called companies, one of their main purposes (if not

the only one) is to generate a certain profit or utility for their owner(s) and/or

shareholders.

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 Non-profit organizations: They are characterized by their purpose of fulfilling a

certain role or function in society without seeking profit or utility for it.

The army, the Church, public services, philanthropic entities, non-governmental

organizations (NGOs), etc. are examples of this type of organizations.

Organization of an SME

Ontoria (2017) states that one of the key aspects for the correct functioning of

companies is the way in which each of the companies is organized. The organization of

the company focuses on the structure and modes of action to ensure that the company

achieves the business objectives it sets. When we are about to create a company, it is

essential to define the way in which the company is organized so that all its components

know what the correct operation should be, the functions that correspond to them, the

responsibilities and the hierarchies.

La Rosa (2017) says that the business organization allows us to achieve the

proposed goals in the most efficient way possible, also taking into account that all the

gears are greased so that all parts of the organization function as they should. .

Therefore, in the business plan it is necessary to define the way in which we will

organize our company to start our activity.

Criteria for the organization of a company

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 Gilli (2017) says that companies do not organize themselves, nor are structures

designed randomly. Therefore, if organizational structures are not in place, the operation

of the company may not be ideal, and may even lead to organizational chaos.

Rovira (2017) maintains that to ensure that a company's organization is

organized effectively, we must have a holistic vision of the company, that is, see the

company as a whole and not as the sum of its parts. We must know what all the

resources we have and organize them in such a way that we achieve the highest

performance with the fewest resources possible. In this way, we can carry out our

activity and obtain the greatest benefits. We must not only think about human resources,

but also about material, financial and everything we have available to integrate them

into an organizational structure that allows us to obtain the highest possible business

competitiveness.

García, Lara (2019), say that to define the structure it will be essential to create

the company's organizational chart where the functions and responsibilities of each of

the company's employees will be defined. It is essential that all components of the

organization know this organizational chart to know the roles of each worker and who

they should address at all times.

Furthermore, for every organization to know the path to follow, it needs a leader

who can structure this entire organization and make the necessary decisions so that the

company's activity functions normally. Business leadership is essential so that all

components of the company and available resources work in the same direction and in

the best possible way.

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Accounting process

Henao, Hernández (2019), It is the process through which we carry out

accounting. The accounting process is annual and normally begins on January 1 of each

year providing information on the initial or starting situation and ends with the final

information (annual accounts) on December 31. Throughout the year, the different

accounting movements that will give rise to the final economic situation have been

collected.

According to Monar (2020), with the initial economic information, accounting

begins through the Journal and General Ledger.

The Journal book and the General Ledger

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 The Daily Book: Daily record of the operations carried out in certain accounts.

The General Ledger: Record of all the movements of a single account in chronological

order.

The accounting entry

Monar (2020) says that the accounting record in these two books is done through

accounting entries. The entry is each entry made with the purpose of reflecting any

economic fact of an organization.

The accounting process is the set of steps that allows the economic operations of

an entity or organization to be expressed through financial statements. This cycle is

essential for every company since thanks to it they will be able to see their expenses and

income, and thus make projections, often avoiding crises that can lead to the closure of

the company.

Suárez, Serpa, Falcon and Ricardo (2018) present the steps to carry out an

accounting process correctly and effectively:

1.- Identification of operations

The accountant must enter all the economic operations carried out by the

organization. The operations that you have to take into account are:

Routine operations

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 Those that occur frequently and constantly in the organization's activities. These

in turn are divided into:

 Basic: are those that serve to obtain goods or services from the company.

Generally, external users or clients are stipulated in them.

 Supportive: they serve as support for the provision of basic operations. Here are

the internal and external users or clients.

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 Non-routine operations

They are those that do not occur permanently in an organization. This stipulates:

 Damages or losses due to unexpected cases.

 Losses due to court rulings.

 Acquisitions or remodeling.

 Research processes for the development of new products or services.

2.- Information collection

This is done through the means defined for each of the operations to be used.

The accountant must ensure that all the information that has been stipulated is reliable.

3.- Classification and registration

Jiménez (2020) maintain that the classification and recording of all information

is generated in accounting entries. This is the name given to the scheme based on the

principle of double entry (cause – effect) which has two treaties: duty and credit. The

duty or position is placed on the left of the box, while the credit is placed on the right.

To prepare the accounting entries, the debit and credit are combined with the accounting

accounts, which are:

 Real or balance sheet: operations that affect the financial situation of the

company (assets, liabilities, equity) are recorded here.

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  Results, profits and losses or nominal: it records the operations that affect the

financial results of the organization (income, costs and expenses).

4.- Intermediate summaries

Ruiz (2018) clarifies that intermediate summaries are those that produce the

financial statements that will allow internal and external users to be informed of the

resources that the company has. These results are recorded in two types of books: the

auxiliary books and the main books (Daily Book, Column Book, General Ledger and

Balance Sheets).

5.- Financial statements

Vallejo, Henao (2020) clarify that they are the final product of the accounting

statement and its purpose is to present financial information to the heads of the company

so that they can make efficient economic decisions. The information found in the

financial statements focuses on profitability, financial position, growth capacity and

flow of funds.

These comprise four parts, balance sheet, income statement, statement of

changes in equity and statement of cash flows.

1. Balance sheet: In many ways, this is an x-ray of the state of a company over a

given period of time.

2. Income statement: Also known as the profit and loss statement, it records both

the company's income and expenses.

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 3. Statement of changes in equity: Understands the reasons for the variation in the

company's equity.

4. Cash flow statement: includes operating activities, investment activities and

financial activities. Through these, the impact of the company's operations is

verified.

Saavedra (2020) states that an accounting process is a set of operations that

every company must go through in order to determine its economic condition. They are

vital steps that can help guarantee the continuity of an institution that carries out

productive activities and thus avoid any crisis that may arise.

Stages that make up an accounting process

Estacio, Rodríguez, Ruenes, Ramírez (2018). During carrying out an accounting

process it is important to develop the following stages:

1. Identification and analysis

The economic processes and operations carried out in the company must be

identified and the accounts and real amounts must be entered. The operations that must

be taken into consideration are routine operations (those that are carried out frequently),

these in turn are divided into basic and support operations, and non-routine operations

(stipulate rare events such as unexpected damages, acquisitions, remodeling).

2. Account identification

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 The origin of the transactions is defined and thus choose the accounts for the

process; there is software that helps with this task. Whoever carries out this phase must

ensure the reliability of the data.

3. Classification and registration:

Inputs and outputs are kept up to date chronologically, income and expenses are

valued and a comparison is made where both final data must be equal, establishing what

the investment was to define the company's profits or losses.

4. Intermediate summaries

At this point, the first results are obtained; these are used to inform the internal

and external stakeholders of the company.

5. Financial statements:

It is the final product, which reaches the company's managers and investors.

MSMES

For Glenn and Solís (2020), an MSME is a company with special characteristics

that make it distinctive and has dimensions, although with certain occupational and

financial limits already defined by the state or region in which it is developed. MSMEs

are agents with specific logics, cultures, interests and an entrepreneurial spirit. They

play an important role in the economy of all countries.

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 MSMEs or also known as micro, small and medium-sized enterprises are

independent entities, with a high predominance in the trade market and with a tendency

to growth, due to their size and general stability, employment and they remain in the

market, They are competitive with each other.

Mendoza, Acevedo and Gaviria (2020), clarifies that these are more established

and maintained in the commercial market and are generally excluded from the industrial

market due to the large amounts of capital that this sector requires for its execution, due

to the same limitations. that the legislation has imposed on its capital and its personnel,

if these are increased, they go from being micro-enterprises to small and from small to

medium-sized and from medium-sized to large companies.

Classification of MSMEs

With the modification of articles 1 and 2 of Law 488-08, the thresholds for the

number of workers and value of annual gross sales* are varied and the reference to the

volume of assets contemplated in Law 488-08 is eliminated. The new classification of

MSMEs is shown below:

Microenterprise:

 Up to 10 workers (15 in the amended Law)

 Annual gross sales of up to RD$ 8 MM (6 MM in the modified Law)

Small company:

 From 11 to 50 workers (from 16 to 60 in the modified Law)

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  Annual gross sales of up to RD$ 54 MM (6 MM – 40 MM in the modified Law)

Medium business:

 From 51 to 150 workers (from 61 to 200 in the modified Law)

 Annual gross sales of up to RD$ 202 MM (40 MM – 150 MM in the modified

Law)

Business registration

Likewise, it modifies article 22 to create the Registry of MSME Companies, run

by the Ministry of Industry, Commerce and MSMEs, free and voluntary for companies,

which will certify the classification by size of companies. The certification will be valid

for a maximum of one year.

Value indexed annually based on the Consumer Price Index.

Pyme is the acronym for small and medium-sized enterprise. This is a

commercial, industrial or other type of company that has a small number of workers and

that registers moderate income: “My father works in an SME”, “Osvaldo started with an

SME and today he is the owner of a national chain” .

Pyme is also usually written as PYME and PyME. A related term is mipyme or

MIPyME, the acronym for micro, small and medium-sized enterprises, which takes into

account the smallest types of businesses, such as sole proprietorships.

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 SMEs have specific needs that must be addressed by the State. This type of

company generates, overall, great wealth for each country in addition to being one of

the main drivers of employment. However, due to their particularities, they need

protection and incentives to compete against large corporations.

Lines of credit with special conditions, tax benefits and free consulting are some

of the instruments that the State usually offers to SMEs to develop.

Advantages of SMEs:

According to Bayona, Loaiza (2019), mentions that:

 They present more flexibility than conventional companies in the production

system.

 They allow you to establish a much closer relationship with customers.

 Thanks to the greater simplicity of its infrastructure, it is easier to change market

niches (the space where potential users or consumers of a service or product are

located).

 Jobs are broader, less strict, and workers are more open to change.

Disadvantages of SMEs:

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 Novoa, Luzmila (2018), mentions that since they move through emergent

processes, they do not have specific guidelines related to their creation, but instead

experience constant changes and evolutions.

 They do not have significant financial backing, which prevents them from

embarking on large-scale businesses.

 They require a constant review of their structure, since their adaptable nature can

become the reason for their dissolution due to the loss of organizational control.

 The greater closeness between workers can be negative if they transfer their

personal problems to the office.

Characteristics of MSMEs in the Dominican Republic

Typically, SMEs almost always share the same qualities; Therefore, it could be

said that the general characteristics it has are:

The owners themselves direct the running of the company, but their

administration can be empirical. The number of workers or employees in the business

grows and ranges from 1 to 200 people. They use little machinery and equipment, they

continue to rely more on work than capital. They dominate and supply a local and

regional market. They are in the process of growth; the small tends to be medium and

aspires to be large. They obtain some tax advantages from the State, which are

sometimes considered in the small taxpayer regime, depending on their sales and

profits.

Classification of MSMEs in the Dominican Republic

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 It is Classified according to Law 488-08, in the Dominican Republic. Micro

companies with 1-15 active workers up to 3,000,000.00 and annual sales RD$

6,000,000.00. Small business 16-60 workers, assets from RD$ 3000,000.01 to RD$

12,000,000.00 and medium business from 60 to 200 workers, assets from 12,000,001 to

40,000,000.00 and annual sales from 40,000,000.00 to 150,000,000.00

Benefits of Law 488-08 of MSMEs

Contributions collected from the Dominican Confederation of Small and

Medium Enterprises, Inc. (CODOPYME) The main advantages established by this Law

is the creation of the FOMIPYMES. The State will provide an amount no less than 0.4%

of the nation's tax revenues to support the development of Dominican Micro, Small and

Medium Enterprises.

The FOMIPYMES will be the driver of the credit services market for this sector

and through it will be able to finance business incubation programs, clusters and other

types of technological and industrial projects. The FOMIPYMES may become a

promoter of the establishment of a Reciprocal Guarantee System and Guarantee Funds,

as a way to facilitate access to credit for a greater number of MSMEs.

Service sector

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 Rivera (2019) mentions that it is the economic sector that encompasses activities

related to non-producing or transforming services of material goods. They generate

services that are offered to satisfy the needs of any population in the world.

It includes subsectors such as commerce, communications, call center, finance,

tourism, hospitality, leisure, culture, entertainment, public administration and the so-

called public services, provided by the State or private initiative (health, education,

long-term care). , among others.

Saumi (2016) states that it directs, organizes and facilitates the productive

activity of the other sectors (primary sector and secondary sector). Although it is

considered a production sector, its main role is in the next two steps of economic

activity: distribution and consumption.

The tertiary sector or service sector is made up of all economic activities whose

purpose is the production of the services demanded by the population. For this reason it

is also known as the service sector.

Although the primary and secondary sectors are dedicated to the production of

material goods, the existence of the tertiary sector allows us to classify all economic

activities that increase the well-being of consumers through services, that is, through the

production of intangible goods. .

Quispe (2017) points out that this sector includes such important sectors as

finance, tourism, hospitality, transportation, health, education and public administration.

In this way, the consumer sees their well-being increased thanks to good health, greater

37
training, a safe community in which to live, etc. All these factors do not translate, as we

have mentioned, into obtaining material goods. However, this does not mean they are of

less importance for the economy and people's lives.

Usagre (2018) clarifies that in the 20th century, a drastic change occurred in the

world in the production of goods and services that has been called outsourcing. This is

because the tertiary sector has started to employ a greater number of employees and

because its way of working has spread to the other two sectors.

The services sector, also known as the tertiary sector, is one of the three large

sectors into which economic activities are divided.

In general, we can define it as the sector that does not produce material goods,

but rather provides the population with the services necessary to satisfy their needs. This

sector is very varied and encompasses a wide range of activities: commerce, transport,

communications, financial services, social services (education, health), tourism and

much more.

Types of tertiary activities

The services sector is enormously heterogeneous; it encompasses very diverse

activities that can be classified according to different criteria.

Firstly, Cruz (2018) points out that taking into account who manages the service,

we can distinguish two large groups:

38
  Public services: provided by public administrations with the income obtained

from taxes. In some cases, the State has a monopoly on that service:

administration (civil servants), defense (armies) and public order (police). In

others, the State is the main provider of these services: health and education.

 Private services: provided by private companies in search of economic benefit.

Here would be the other services (transport, tourism, leisure, commerce,

financial activities, etc.).

Secondly, Arcarons, Comet (2018), state that we can distinguish various groups,

depending on the type of service provided:

 Social services: public administration, education, health. These activities are

mainly managed by the State.

 Distribution services: commerce, transportation, communications, mail.

 Consumer services: hospitality, restaurants, leisure, culture, domestic, etc.

 Business services: banks, insurance, etc. These services are also provided to

individuals.

The RAE Dictionary defines the tertiary sector or service sector as “a sector that

covers activities related to non-productive material services of goods, which are

provided to citizens, such as Administration, teaching, tourism, etc.”

Therefore, it is a sector of productive economic activities that do not directly

produce material goods but benefits to people or companies.

39
 In developed countries, almost two thirds of the population (60%) work in this

tertiary sector, in underdeveloped countries the figure decreases and is highly variable

(between 10% and 40%); On the other hand, the presence of the service sector is always

greater in cities than in rural areas.

Peña, Garrido (2016) say that services are necessary, they direct and structure

other productive activities in the primary sector (agriculture, livestock, mining) and the

secondary sector (industry).

The activities of the tertiary sector are very different and varied and therefore

have very different degrees of qualification, leading to the term quaternary sector to

refer to services that require more significant professional preparation.

Philosophical-anthropological Framework

Vision The starting point for articulating a company's hierarchy of goals, the

company's vision, which can be defined as the statement that determines where it wants

to go in the future.

Mission: This differs from the vision, in that it encompasses both the company's

purpose and the basis of competition and competitive advantage. While the vision

statement is broad, the mission statement needs to be more specific and focused on the

means through which the company will compete.

40
 Values: They are collective ideals and principles that guide the reflections and

actions of an individual or a group of individuals. They are the axes of the company's

conduct and are closely linked to its purposes.

Social Framework

Santana (2018) MSMEs in the DR and their role in the economy Retrieved from

https://acento.com.do/2018/opinion/8609603-mipymes-la-rd-rol-la-economia/ In that

sense, we must It should be noted that the current Tax Code heavily punishes this sector

of the economy, with the increase in the tax burden or tax pressure increasing, leading

them with these measures to maintain high informality or simply disappear from the

market.

Another aspect that limits access to financing is the absence of audited financial

records and documented credit histories, and the lack of fixed assets that can be offered

as real guarantees, which limits them when demanding funds to finance their projects.

existing or new.

Therefore, we conclude that this type of companies has high operating costs,

high fiscal and social burdens, weak administrative and accounting management, high

employee turnover, since they leave the companies when they have experience, low

educational level and barriers to access to technologies, lack of knowledge of the

processes of penetrating international market niches, adding to this, the problems they

face in accessing financing sources from the banking financial sector to finance their

projects, since it entails a series of requirements that are not in a position to comply,

with Micro, Small and Medium Enterprises immersed in a major crisis to be able to

remain in the production chain and be competitive in local and international markets.
41
 Legal framework

Legal base Description

Article 50. - Freedom of enterprise. The State recognizes and guarantees the free
business, commerce and industry. All people have the right to freely engage in
Constitution of the Rep. the economic activity of their choice, with no limitations other than those
Dominican prescribed in this Constitution and those established by law.

The Millennium Development Goals (MDGs) are the

goals, quantified and chronological, that the world has
set to fight against extreme poverty in its various
Millennium dimensions: hunger, illness, income poverty, lack
Development Goal of adequate housing, social exclusion, problems of
(MDG) education and environmental sustainability, among others.
The Dominican Republic has registered one of the highest economic growth rates
in the region in recent years. This growth has been based, fundamentally, on the
increase in labor productivity associated with the incorporation of new
Multi-year plan technologies and physical capital in companies, factors that replace labor.
3.4.3.1 Develop sustainable mechanisms that allow access for micro,
Law 1-12 National small and medium-sized enterprises (MSMEs) to financial services that take into
Development Strategy account
203 tells its characteristics, including the gender perspective
Law No. 488-08, which establishes a Regulatory Regime for the Development
and Competitiveness of Micro, Small and Medium Enterprises (MSMEs).
Law NO.488-08 Published in G. EITHER. No. 10502, of December 30, 2008.
Article 1.- The presidential initiative is created for the support and promotion of
Micro, Small and Medium Enterprises (Mypymes), with the objective of
identifying and promoting actions and reforms that impact the formalization,
Decree 370-15 productivity and competitiveness of the country's SME sector.

Article 1.- The Micro Promotion and Support Program is created,

Small and Medium Enterprises (PROMIPYME), aimed at promoting efficiency,
Decree No. 238-97 modernization and growth of micro, small and medium enterprises.

42
Conceptual framework or definition of terms

According to Pérez (2010), in his proposal he defines: Small businesses are

economic entities that operate with a greater or lesser degree of organization, using

knowledge and resources to produce products or provide services and the author

Dopacio (2005), considers them as SMEs. : to any company, regardless of the sector,

activities and legal form, that meets the following three (3) characteristics: number of

employees, number of assets and general balance that do not exceed what is established

in the regulation of these companies.

The author Stoner (2005) defines them as: businesses that have local owners and

managers, and almost always, with few employees who work in a single location. SMEs

are also considered as independent, specialized production units, in which their greatest

advantage lies in their simple technology, easy to assimilate and incorporate.

43
 Chapter III Methodology or methodological design

Information sources

The source of information that corresponds to the research is the primary and

secondary according to Cerda (1998). Primary sources are all those from which direct

information is obtained, that is, from where the information originates, these sources are

people, organizations, events, the natural environment, etc. (Bernal 2010, p.191).

Secondary sources are all those that offer information on the topic to be

investigated, but that are not the original source of the facts or situations, but rather only

reference them. The main sources; books, magazines, written documents (in general, all

printed media), documentaries, news broadcasts and information media. (Bernal 2010,

p.192a).

Kind of investigation

The corresponding type of research is descriptive, that which outlines the

characteristics or features of the situation or phenomenon under study. Carrying out this

type of research is mainly supported by techniques such as survey, interview,

observation and document review. (Bernal 2010, p.122b).

44
Research focus

This research will have the following approach: Quantitative method or

traditional method: It is based on the measurement of the characteristics of social

phenomena, which means deriving from a conceptual framework relevant to the

problem analyzed. This method tends to generalize and normalize results. (Bernal 2010,

p.60c).

Method used in the research

Deductive method This method of reasoning consists of taking general

conclusions to obtain particular explanations. The method begins with the analysis of

the postulates, theorems, laws, principles, etc., of universal application and proven

validity, to apply them to particular solutions or facts. (Bernal, 2010, p.59d).

Research techniques

Bernal (2010 e) the research techniques will be: Interview, Document Analysis,

Survey and Information Collection

45
Research instruments

Bernal (2010 f) the instruments to be used will be: questionnaire, interview and

survey.

46
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51
Annexes:

52
Tentative Index

I- Cover.-
Ii- Back cover.-
III- Title.-
Iv- Index.-
V- Dedications.-
Vi- Acknowledgments.-
VII- Executive Summary.
-Acronyms, acronyms and abbreviations
VIII- Introduction.-
1.0.- Chapter 1: The Problem.-
1.1.- Contextualization of the Research Problem.-
1.2.- Formulation of the Research Problem.-
1.3.- Systematization or Research Questions.-
1.4.- Justification of the Research.-
1.5.- Delimitation of the Investigation.-
1.5.1.- Limits. -
Geographical
Demographic
Temporary

1.5.2.- Scope. -

Contributions
Utility

1.6.- Objectives.-
1.6.1.- General Objective.-
1.6.2.- Specific Objectives.-
1.7.- Variables.
1.7.1.- Independent and Dependent Variables.-
1.7.2.- Variable Indicators.-
1.7.3.- Operation of the Variables.-
1.8.- Hypothesis.-
2.0.- Chapter 2: Reference Frames.-
Research Background.-
Historical Framework.-
Legal framework.-
Theoretical framework.-
Contextual Framework.-
Social Framework.-
Philosophical Framework.-
Conceptual Framework or Definition of Terms.-
3.0.- Chapter 3: Methodological Design.-
3.1.- Research Approach.-
3.2.- Method Used in Research.-
3.3.- Population and Sample.-

53
3.4.- Research Techniques.-
3.5.- Research Instruments.-
4.0.- Chapter 4: Analysis and Interpretation of Results.-
4.1.- Presentation of Instruments.-
4.2.- Research Results.-
4.3.- Analysis and Interpretation of Results.-
4.4.- Proposal, Conclusions and Recommendation.-
X- References.-
Xi- Annexes.-
Xii- Appendices.-
Xiii- Certification of non-Plagiarism.-

54
 Schedule

Year Year
2019 2020
Months Months
No. Activities Weeks Sept. Oct. Nov. Dec. Jan. Feb. Marz. April
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
1 Choice of Topic
2 Definition of the problem
3 Preparation of the preliminary project
4 Preliminary draft correction
5 Preliminary project approval
6 Information review
7 Review Chapter I
8 Review Chapter II
9 Review Chapter III
10 Preparation of chapter IV
11 Literature review
Preparation of conclusions and
13 recommendations

14 Thesis review
15 thesis correction
16 Thesis approval

Note: Color
Activity to execute

5
Time without operation

6
Budget of Activities for Thesis Preparation

Qualificat Organization and Accounting Process of SMEs private

ion: sector
Master's
Business Administration
degree:
Name: Disneyda Mateo Medina
Sept. 2019- Sept. 2020
Period:

No. ITEM Estimates in % Value (RD$)

1 Equipment, Software and Technical Services 20% 4,000.00

2 Transportation and field trips 30% 6,000.00

3 Materials and supplies 20% 4,000.00

4 Bibliographic materials and photocopies 15% 3,000.00

5 Unforeseen 15% 3,000.00

Total 100% 20,000.00