Business strategy and the growth of small and medium-sized enterprises in Peru

Abstract

Objective: To determine how the lack of a business strategy influences the growth and development of small and medium-sized companies in Peru. Method: The population was made up of 100 small and medium-sized companies in Peru. Measurement instruments that have been validated by experts were used. The research is Descriptive - Correlational level. Result: 63% of the Managers surveyed express that they almost always apply business strategies, 6% apply the various strategies in their companies and 4% express that they never use the various business strategies in their companies. 56% of the Managers state that they almost always have business growth, 31% express that they sometimes have business growth and 13% express that their small and medium-sized companies are always improving. 50% indicate that sometimes the financial system improves, 46% almost always improves the financial system in their companies, but it must be considered that the design increases and 4% state that the financial system of their small and medium-sized companies almost never improves. Conclusions: Regarding whether the business strategy influences the growth of small and medium-sized companies, they consider that managers do apply the strategies to seek growth but they do so in a very difficult way, which shows that their results do not they are efficient. In this respect, we also have that a small percentage do not apply the strategies for the companies, which is proven by the low performance. We have that a sector considers that the strategies if they improve the financial profitability of the company.