Venezuelan SME

17% between six and ten years, and another 17% less than six. Weaknesses there is a lack of qualified personnel and with strategic vision based on the knowledge of what is happening in your environment, being a serious obstacle in their development, requiring urgent to improve the management of employers with a view to strengthening its strategic vision of face to national problems, the opening toward socialism, globalization. There is an absence of a qualified, certified management of formal knowledge that leads to administrative science, seriously affecting its competence, the correct use of their resources, in addition to knowing the challenges and generate changes, transformations necessary to ensure operability, productivity and competition. Another great weakness that few exported because they possess organizational, financial and technical constraints insufficient knowledge of the markets of other countries and their distribution channels, inability to recruit staff specialized in international trade, ignorance of international agreements, low volume and little variety of products, and insufficient financial resources. Remarkably, that export, the most widely used organisational response consortia by SMEs, especially European ones, to overcome these obstacles, are ‘ underdeveloped in the country. There is only an example of industry consortium formed in May 1999 in the State of Carabobo under the sponsorship of the governorate and technical advice from the Institute of social, economic and technological research of Venezuela (INSOTEV) for manufacturing companies the difference between Venezuela and other countries is larger: Venezuela has just 0.35 manufacturing firms per thousand inhabitantsWhile Colombia, quadruple this figure and Germany and Japan have the highest rates in the world 6.2 and 8.2 respectively.

These numbers should not surprise the almost continuous decline in private investment since 1978 leaves no doubt of the dismantling of the Venezuelan productive apparatus. It is worrying to observe that no sector of the Venezuelan company works at 100% of their capacity, it is presumed that this is mainly due to the fall in demand, which significantly affects the level of national production. Definitely to meet the demands of the new model of industrialization, modern SMEs need more qualified staff and managers willing to compete with global markets. This leaves little room for the traditional SMEs, generating products or low quality, whose technological innovation is little or no services and their managers are poorly prepared to integrate (horizontally or vertically? With other companies. It is known that a minority of the Venezuelan SME uses advanced technology, based on their competitiveness in quality of the designs, the productive flexibility and the opportunity of deliveries and exports directly or as providers of intermediate products for large enterprises that exported. Small entrepreneurs, not generally know the situation of their businesses because their systems of planning and control are few developed.

Also another great weakness is its marketing. The employer to charge of an SME is unknown that they want, where they are, who are the customers and why they buy. SMEs do not have in the majority of cases, their management systems and financial or tax planning strategies are deficient, what hurts and affects up to bank loans.