Encouragement Policies and Productivity Indicators for Colombian SMEs Using Data Envelopment Analysis and Malmquist Indexes
Purpose: This study aimed to characterize the performance of Colombian Micro, Small, and Medium-sized Enterprises (MSMEs) in recent years, along with the legal framework and central public policies governing and promoting this business segment. In addition, it sought to design, validate, and impleme...
| Main Authors: | , |
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| Format: | Article |
| Language: | Spanish |
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Instituto Tecnológico Metropolitano
2024-01-01
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| Series: | Revista CEA |
| Subjects: | |
| Online Access: | https://revistas.itm.edu.co/index.php/revista-cea/article/view/2708 |
| _version_ | 1827290081111572480 |
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| author | Manuel Eduardo García Camacho José Daniel Anido R. |
| author_facet | Manuel Eduardo García Camacho José Daniel Anido R. |
| author_sort | Manuel Eduardo García Camacho |
| collection | DOAJ |
| description | Purpose: This study aimed to characterize the performance of Colombian Micro, Small, and Medium-sized Enterprises (MSMEs) in recent years, along with the legal framework and central public policies governing and promoting this business segment. In addition, it sought to design, validate, and implement a dynamic system of productivity indicators to help these companies improve their efficiency and competitiveness in the short, medium, and long terms. MSMEs represent approximately 99% of the business sector in Colombia, accounting for nearly 80% of national employment.
Design/Methodology: In the initial descriptive–analytical phase, using secondary sources, an analysis was conducted on the performance and current situation of Colombian MSMEs, as well as the main legal provisions regulating and contributing to their development. The subsequent phase (of an applied nature) involved estimating and validating a dynamic system of productivity indicators using Data Envelopment Analysis (DEA) and Malmquist indexes for 2 samples of SMEs.
Findings: After conducting the DEA, a significant decrease was observed in the productivity of the MSMEs, particularly in terms of technical efficiency in both the Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) models. This means that, evaluated both under the CRS and VRS modes, these enterprises use more inputs than necessary for the amount of goods produced. In addition, the Malmquist indexes showed that, during the period under analysis, technical efficiency related to changes in innovation exhibited a positive behavior, attributed to the incorporation of technological changes for improving their productivity.
Conclusions: Despite the development of public initiatives and institutional support in recent decades, Colombian SMEs still face adverse conditions that affect their competitiveness and limit their potential in the national economy. The proposed system of indicators, which is based on DEA techniques and Malmquist indexes, holds promise in helping these businesses to improve their productivity.
Originality: This study makes a significant contribution to the fields of economics and business management in the region by providing a critical and updated evaluation of the efficiency of MSMEs in Colombia. Additionally, it examines their performance and current situation and summarizes the main legal provisions regulating and contributing to their development in the country. |
| first_indexed | 2024-04-24T12:01:56Z |
| format | Article |
| id | doaj.art-72d50a18b1204428aafaff768d053a53 |
| institution | Directory Open Access Journal |
| issn | 2390-0725 2422-3182 |
| language | Spanish |
| last_indexed | 2024-04-24T12:01:56Z |
| publishDate | 2024-01-01 |
| publisher | Instituto Tecnológico Metropolitano |
| record_format | Article |
| series | Revista CEA |
| spelling | doaj.art-72d50a18b1204428aafaff768d053a532024-04-08T16:29:23ZspaInstituto Tecnológico MetropolitanoRevista CEA2390-07252422-31822024-01-011022e2708e270810.22430/24223182.27082253Encouragement Policies and Productivity Indicators for Colombian SMEs Using Data Envelopment Analysis and Malmquist IndexesManuel Eduardo García Camacho0https://orcid.org/0000-0001-6014-272XJosé Daniel Anido R.1https://orcid.org/0000-0002-7773-3304MGC Yield ConsultingUniversidad de Los AndesPurpose: This study aimed to characterize the performance of Colombian Micro, Small, and Medium-sized Enterprises (MSMEs) in recent years, along with the legal framework and central public policies governing and promoting this business segment. In addition, it sought to design, validate, and implement a dynamic system of productivity indicators to help these companies improve their efficiency and competitiveness in the short, medium, and long terms. MSMEs represent approximately 99% of the business sector in Colombia, accounting for nearly 80% of national employment. Design/Methodology: In the initial descriptive–analytical phase, using secondary sources, an analysis was conducted on the performance and current situation of Colombian MSMEs, as well as the main legal provisions regulating and contributing to their development. The subsequent phase (of an applied nature) involved estimating and validating a dynamic system of productivity indicators using Data Envelopment Analysis (DEA) and Malmquist indexes for 2 samples of SMEs. Findings: After conducting the DEA, a significant decrease was observed in the productivity of the MSMEs, particularly in terms of technical efficiency in both the Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) models. This means that, evaluated both under the CRS and VRS modes, these enterprises use more inputs than necessary for the amount of goods produced. In addition, the Malmquist indexes showed that, during the period under analysis, technical efficiency related to changes in innovation exhibited a positive behavior, attributed to the incorporation of technological changes for improving their productivity. Conclusions: Despite the development of public initiatives and institutional support in recent decades, Colombian SMEs still face adverse conditions that affect their competitiveness and limit their potential in the national economy. The proposed system of indicators, which is based on DEA techniques and Malmquist indexes, holds promise in helping these businesses to improve their productivity. Originality: This study makes a significant contribution to the fields of economics and business management in the region by providing a critical and updated evaluation of the efficiency of MSMEs in Colombia. Additionally, it examines their performance and current situation and summarizes the main legal provisions regulating and contributing to their development in the country.https://revistas.itm.edu.co/index.php/revista-cea/article/view/2708productivitydeamalmquist indexespublic policiescolombia |
| spellingShingle | Manuel Eduardo García Camacho José Daniel Anido R. Encouragement Policies and Productivity Indicators for Colombian SMEs Using Data Envelopment Analysis and Malmquist Indexes Revista CEA productivity dea malmquist indexes public policies colombia |
| title | Encouragement Policies and Productivity Indicators for Colombian SMEs Using Data Envelopment Analysis and Malmquist Indexes |
| title_full | Encouragement Policies and Productivity Indicators for Colombian SMEs Using Data Envelopment Analysis and Malmquist Indexes |
| title_fullStr | Encouragement Policies and Productivity Indicators for Colombian SMEs Using Data Envelopment Analysis and Malmquist Indexes |
| title_full_unstemmed | Encouragement Policies and Productivity Indicators for Colombian SMEs Using Data Envelopment Analysis and Malmquist Indexes |
| title_short | Encouragement Policies and Productivity Indicators for Colombian SMEs Using Data Envelopment Analysis and Malmquist Indexes |
| title_sort | encouragement policies and productivity indicators for colombian smes using data envelopment analysis and malmquist indexes |
| topic | productivity dea malmquist indexes public policies colombia |
| url | https://revistas.itm.edu.co/index.php/revista-cea/article/view/2708 |
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