Fragility of midsize businesses in El Salvador
DOI:
https://doi.org/10.5377/ryr.v38i0.1831Keywords:
Microenterprises - El Salvador, Economy, Information System – Finance, Financial Analysis, CompetitivenessAbstract
This study is a step towards a diagnosis of Enterprises of the Metropolitan Area of San Salvador, from the perspective of risk faced by economic units, using a methodology to determine why businesses fail or are successful in the market. Process accounting information of these companies and compare them across sectors and sub-sectors to which they belong, according to the International Standard Industrial Classification for all economic activities, facilitate the realization of business benchmarking, is crucial in empirical work. This procedure can be applied to measure the performance of other business and economic production units in other countries. Besides defining business assessment using financial indicators with the respective breakdowns, in the study is possible to specify which sectors are less competitive with the market average. The author defines the solvency and insolvency condition of the companies, to determine the impacts of these indicators on the fragility of the enterprises studied. There is an application of statistical procedures based on the logit model, making possible to know the impacts over the basis of the fragility measurement, and therefore, business risk of midsize businesses in San Salvador Metropolitan Area.
DOI: http://dx.doi.org/10.5377/ryr.v38i0.1831
Realidad y Reflexión Año 13, N° 38: 9-30
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