Influence of the Market Economy in the Management of Microenterprises

Abstract

For almost 2,000 years, world GDP growth was virtually zero, as we migrated from a primary economy (agriculture) to an industrialized economy, then to a very financially based, dot-com economy. And now we are facing a structural change in the world economy. The systems that have been practiced are economies with greater or lesser State intervention. If there is less intervention, companies invest more dynamically and create jobs (buying mass, middle class). The intervention of the State is justified to compensate for the deficiencies of the system and attend to the most disadvantaged. Micro-enterprises are the majority in economies around the world: they have high profitability and low sales volume, generate one or two jobs per micro-enterprise and usually end after 3 years to migrate to another activity. The question is whether the economy, generally free market, influences the prosperity of micro-enterprises. The documentary research concludes that microenterprises generate employment, middle class and up to 50% of GDP by internal demand of a country regardless of the economic management of the State. The rationale is that the economic cycle of a country is independent of management at the country level, it depends on three criteria: per capita income, public debt and capital attraction policies.