CORPORATE FINANCE AND THE DEVELOPMENT OF MICRO AND SMALL ENTERPRISES IN HUANUCO, PERU

 

David Julio Martel Zevallos

Universidad Nacional Hermilio Valdizán, Huanuco, Peru

https://orcid.org/0000-0001-9081-4654

 

Reiter Lozano Dávila

Universidad Nacional Hermilio Valdizán, Huanuco, Peru

https://orcid.org/0000-0002-2027-6421

 

Edward Luis Zevallos Choy

Universidad Nacional Hermilio Valdizán, Huanuco, Peru

https://orcid.org/0000-0003-0393-4311

 

Rocío Rasmuzzen Santamaría

Universidad Nacional Hermilio Valdizán, Huanuco, Peru

https://orcid.org/0000-0001-8772-9360

 

Juan Carlos Rojas Matos

Universidad Nacional Hermilio Valdizán, Huanuco, Peru

https://orcid.org/0000-0002-5910-0327

 

Nicéforo Bustamante Paulino

Universidad Nacional Hermilio Valdizán, Huanuco, Peru

https://orcid.org/0000-0002-8582-269X

 

Abstract

This study shows the implications of Corporate Finance in the Development of Micro, Small and Medium Enterprises (MSME) in the city of Huánuco, Peru, considering the responsibility of society as a whole to establish fair balance points for micro and small entrepreneurs, who turn to the instances of financial institutions to seek sources of financing. The objectives formulated and the hypotheses proposed were achieved and tested through the use of inferential statistics, rigorously following the method of scientific research: The business finances proposed as a means of development of Micro and Small Enterprises in the Department of Huánuco, do not have a substantial impact on their development. Informality is very high and companies do not seem to be interested in becoming formalized due to the high costs involved. Business financing has no impact as an instrument to operationalize investments in micro and small enterprises in the Department of Huánuco. Credit is the main problem because due to the modest size of the investment in a microenterprise, it does not merit the participation of the credit market in its support, since it can be carried out by the entrepreneur directly or with the help of family or friends; however, when it is requested, it is obtained at interest rates higher than the annual inflation rate. From the above it can be deduced that the main problems of the MSMEs are a consequence of the stabilization policy and the accelerated commercial opening. The degree of development achieved by micro and small enterprises in the department of Huánuco is acceptable and is not due to the use of business financing lines. The lack of uniform promotion, i.e., the discrimination observed by company size and sector, highlights the existence of an inadequate economic policy that lacks a comprehensive approach to support MSME. Business financing contributes to effectively managing the activities and expectations of micro and small enterprises in the Department of Huánuco.

Keywords: corporate finance, business development, micro and small enterprises.