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The adaptation of the small enterprise to neoliberalism

Par : Contributeur(s) : Type de matériel : TexteTexteLangue : français Détails de publication : 2016. Sujet(s) : Ressources en ligne : Abrégé : With the economic crisis of the eighties in Mexico, the State modified its market regulation model, and changed a model of “welfare” to a “neoliberal” model. The model is exceeded by the incapacity to resolve the social and economic problems, and the change towards a style of practical management based on the ration of cost-benefit is the principal factor with which the other participants from civil society relate: entrepreneurs, civil organizations and individuals in society. Within this model management, the market, regulated by the state, becomes an open market, having only a legal framework without state interference to generate economic growth. In the pursuit of market efficiency, the company uses new mechanisms of organization or hierarchical structures as a way to deal with uncertainty in the market. This neoliberal model of competition and efficiency of companies in Mexico, generates un employment, underemployment and precarious jobs and an informal economy. Small businesses in the informal sector emerge with a peculiar form of organization, relationships with family, friends and usurers, and easy access to the market by requiring low levels of capital, education and infrastructure. Within this context, the State focuses on the small formal enterprise networks and looks to integrate them in networks of large companies through intermediary figures known as: accelerators, gazelles and tractors. A functional solution to integrate the institutional model in small informal businesses is to allow them to pay low taxes in comparison with formal companies by giving them the chance to develop independently and, if necessary, integrate them into the productive chains, giving them access to credit, technology and training.
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With the economic crisis of the eighties in Mexico, the State modified its market regulation model, and changed a model of “welfare” to a “neoliberal” model. The model is exceeded by the incapacity to resolve the social and economic problems, and the change towards a style of practical management based on the ration of cost-benefit is the principal factor with which the other participants from civil society relate: entrepreneurs, civil organizations and individuals in society. Within this model management, the market, regulated by the state, becomes an open market, having only a legal framework without state interference to generate economic growth. In the pursuit of market efficiency, the company uses new mechanisms of organization or hierarchical structures as a way to deal with uncertainty in the market. This neoliberal model of competition and efficiency of companies in Mexico, generates un employment, underemployment and precarious jobs and an informal economy. Small businesses in the informal sector emerge with a peculiar form of organization, relationships with family, friends and usurers, and easy access to the market by requiring low levels of capital, education and infrastructure. Within this context, the State focuses on the small formal enterprise networks and looks to integrate them in networks of large companies through intermediary figures known as: accelerators, gazelles and tractors. A functional solution to integrate the institutional model in small informal businesses is to allow them to pay low taxes in comparison with formal companies by giving them the chance to develop independently and, if necessary, integrate them into the productive chains, giving them access to credit, technology and training.

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