Impacts of Business Informality on the Creation and Sustainability of MSMEs in Bolivia

Business informality in the Bolivian context translates into high rates of poverty and vulnerability for those who work in the formal sector, with direct impacts, not only on them, but also on the State's tax collection. This research aimed to address the impacts generated by business informali...

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Main Authors: Wilde Rivera, Cristhian, Rodríguez López, Jorge Ruperto
Format: Online
Language:spa
Published: Unidad Editorial UPTC 2024
Subjects:
Online Access:https://revistas.uptc.edu.co/index.php/inquietud_empresarial/article/view/16511
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author Wilde Rivera, Cristhian
Rodríguez López, Jorge Ruperto
author_facet Wilde Rivera, Cristhian
Rodríguez López, Jorge Ruperto
author_sort Wilde Rivera, Cristhian
collection OJS
description Business informality in the Bolivian context translates into high rates of poverty and vulnerability for those who work in the formal sector, with direct impacts, not only on them, but also on the State's tax collection. This research aimed to address the impacts generated by business informality on the creation and business sustainability of MSMEs in Bolivia and was descriptive in nature, with a mixed approach and methods, techniques, and instruments appropriate to these characteristics were used. A literary review was carried out and a survey was applied to 146 company managers in the following sectors: industrial, commercial and services in the 4 most representative cities of the country (Santa Cruz, La Paz, Cochabamba, and Tarija). The factors with the greatest impact revealed were: the loss of market due to unfair competition, high production costs due to taxes and the workload involved in working formally. On the other hand, informality expands due to the flow of smuggling as a refuge for unemployment, creating a vicious cycle that expands the informal business fabric, placing the country in the first place of informality in Latin America.  JEL Codes: H3, E62 Received: 07/09/2023.  Accepted: 17/12/2023.  Published: 23/01/2024. 
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spelling oai:oai.revistas.uptc.edu.co:article-165112024-04-26T01:31:50Z Impacts of Business Informality on the Creation and Sustainability of MSMEs in Bolivia Impactos de la informalidad empresarial en la creación y sostenibilidad de las MiPyMEs en Bolivia Wilde Rivera, Cristhian Rodríguez López, Jorge Ruperto business informality MSMEs creation sustainability informalidad empresarial MiPyMEs creación sostenibilidad Business informality in the Bolivian context translates into high rates of poverty and vulnerability for those who work in the formal sector, with direct impacts, not only on them, but also on the State's tax collection. This research aimed to address the impacts generated by business informality on the creation and business sustainability of MSMEs in Bolivia and was descriptive in nature, with a mixed approach and methods, techniques, and instruments appropriate to these characteristics were used. A literary review was carried out and a survey was applied to 146 company managers in the following sectors: industrial, commercial and services in the 4 most representative cities of the country (Santa Cruz, La Paz, Cochabamba, and Tarija). The factors with the greatest impact revealed were: the loss of market due to unfair competition, high production costs due to taxes and the workload involved in working formally. On the other hand, informality expands due to the flow of smuggling as a refuge for unemployment, creating a vicious cycle that expands the informal business fabric, placing the country in the first place of informality in Latin America.  JEL Codes: H3, E62 Received: 07/09/2023.  Accepted: 17/12/2023.  Published: 23/01/2024.  La informalidad empresarial en el contexto boliviano se traduce en altos índices de pobreza y vulnerabilidad para quienes trabajan en el sector formal, con impactos directos, no solo en ellos, sino también en la recaudación fiscal del Estado. Esta investigación tuvo como objetivo abordar los impactos que genera la informalidad empresarial en la creación y la sostenibilidad empresarial de las MiPyMEs en Bolivia; fue de tipo descriptivo, con enfoque mixto y se utilizaron métodos, técnicas e instrumentos adecuados a esas características. Se realizó una revisión literaria y se aplicó una encuesta a 146 directivos de empresas de los rubros industrial, comercial y de servicios en las 4 ciudades más representativas del país (Santa Cruz, La Paz, Cochabamba y Tarija).  Los factores de mayor impacto revelados fueron: la pérdida de mercado por la competencia desleal, los altos costos de producción debido a los impuestos y las cargas laborales que implica trabajar en la formalidad. Por otro lado, la informalidad se expande por el flujo del contrabando como refugio para el desempleo, creando un ciclo vicioso que amplía el tejido empresarial informal ubicando al país en el primer lugar de informalidad a nivel de Latinoamérica. Códigos JEL: H3, E62 Recibido: 07/09/2023. Aceptado: 17/12/2023. Publicado: 23/01/2024.  Unidad Editorial UPTC 2024-01-23 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion application/pdf text/xml https://revistas.uptc.edu.co/index.php/inquietud_empresarial/article/view/16511 10.19053/01211048.16511 Inquietud Empresarial; Vol. 24 No. 1 (2024): Inquietud Empresarial 24(1) Enero-Junio: Special Issue on: "Organizational Studies in Innovation and Sustainability. The New Challenges in a Post Covid Era".; 1-16 Inquietud Empresarial; Vol. 24 Núm. 1 (2024): Inquietud Empresarial 24(1) Enero-Junio: Special Issue on: "Organizational Studies in Innovation and Sustainability. The New Challenges in a Post Covid Era".; 1-16 0121-1048 spa https://revistas.uptc.edu.co/index.php/inquietud_empresarial/article/view/16511/13829 https://revistas.uptc.edu.co/index.php/inquietud_empresarial/article/view/16511/14039 Derechos de autor 2024 Cristhian Wilde Rivera, Jorge https://creativecommons.org/licenses/by-nc-nd/4.0/
spellingShingle business informality
MSMEs
creation
sustainability
informalidad empresarial
MiPyMEs
creación
sostenibilidad
Wilde Rivera, Cristhian
Rodríguez López, Jorge Ruperto
Impacts of Business Informality on the Creation and Sustainability of MSMEs in Bolivia
title Impacts of Business Informality on the Creation and Sustainability of MSMEs in Bolivia
title_alt Impactos de la informalidad empresarial en la creación y sostenibilidad de las MiPyMEs en Bolivia
title_full Impacts of Business Informality on the Creation and Sustainability of MSMEs in Bolivia
title_fullStr Impacts of Business Informality on the Creation and Sustainability of MSMEs in Bolivia
title_full_unstemmed Impacts of Business Informality on the Creation and Sustainability of MSMEs in Bolivia
title_short Impacts of Business Informality on the Creation and Sustainability of MSMEs in Bolivia
title_sort impacts of business informality on the creation and sustainability of msmes in bolivia
topic business informality
MSMEs
creation
sustainability
informalidad empresarial
MiPyMEs
creación
sostenibilidad
topic_facet business informality
MSMEs
creation
sustainability
informalidad empresarial
MiPyMEs
creación
sostenibilidad
url https://revistas.uptc.edu.co/index.php/inquietud_empresarial/article/view/16511
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