Causes of corporate failure in the capital city of the Puno region – Peru

Abstract

His research explored the most frequent causes of business failure in the city of Puno - Peru, capital of the Region, under the paradigm of "free market" economy. The approach was exploratory, descriptive, explanatory and correlational developed between the months of April to July of 2017 in the city of Puno; 140 surveys of random opinion polling were applied to involved entrepreneurs distributed in 14 strategic groups of greater activity in the whole city of Puno. Parallel to the participatory observation process, the participants and the directors of the Chamber of Commerce, Municipality, Ministry of Production, Indecopi, Sunarp, Ombudsman and Sunat were interviewed. The results, show that the most frequent causes of business failure was the low economic profitability. The reduced net profits were earmarked to pay the
tax obligations and the payments of high rental costs of the commercial premises. Of these, 46% of the respondents attribute them to SUNAT's constant pressure and social psychosis, followed by 34% attributed to the high cost of renting premises; And 19% attributed them to municipal pressure. Business failure is also compounded by the scarce application of marketing strategies, ignorance of market behavior and the use of information technologies as management tools. In short, the failed entrepreneurs were not prepared nor had the support of competent professionals to deal with their productive or commercial activities.