The Micro And Small Business In Honduras

The micro and small business in Honduras

Introduction

Both micro and small businesses can be defined as an economic unit established by what is a legal or natural person, under what is any type of organization in order to carry out and perform activities of extraction, production, marketing and provision of services as what are goods.

Developing

In Honduras these organizations represent and perform a fundamental function, since both are part of the economic development of our country. What is the sector of micro and small businesses have a decisive function in what is the generation of employment, in contributing to social stability and ultimately in economic dynamism.

According to Honduran businessmen, these generate 70% of jobs in the country, and in fact in the territory of Honduras it is estimated that 95% of companies in general are micro and small businesses, where they are participants in economic activities such as: consumption food, services, agribusiness, manufacturing and ultimately crafts.

Based on the data made by the Inter -American Development Bank, it determines that there are around 26 thousand companies of both items and that produce 25% of Honduran Gross Domestic Product.

As is known, Honduras is happening a strong unemployment situation, so in recent decades, which are micro and small business have taken a lot of relevance, since as previously mentioned they are employment generators in a very high percentage, the their problem is that, due to the lack of sector vision in the subsequent governments, microeconomic inefficiency, disorientation in regard to real needs in what is the business segment and even the poor collective management are among many others , they are from the primary obstacles to the growth of MSME in our country, therefore causing consequences that affects us both and in the field of country.

Due to this situation, the most indicated is to start developing strategies to be able to solve this problem, and although it is not very visible, it has already begun to go to the implementation of plans in action to be able to direct and promote the Honduran SMEs , in order to contribute to reduce all the barriers and obstacles that so far they have been happening.

Part of the actions that have been carried out was, a law decree that has modified the way in which the MSME moves in Honduras, giving to what entrepreneurs are an exemption on what is the Income Tax as well as in also in Other rates that are in a period of five years, giving them time for businesses to consolidate, as well as 12 months of grace to obtain operating permits.

conclusion

In conclusion of this report regarding what the company and small businesses are, I can say that I had never asked myself about the impact they cause on the economic and social development of our country and after reading about this I can say that these are In short, more help, more in the country situation we current greater growth economically speaking and being able to reduce the level of crisis a little more than sadly is going through and that has harmed us so much in many aspects.