Characteristics of the financing of small companies of the San José de Cúcuta Municipality

Abstract

The paper shows the results obtained from an investigation in which the main characteristics of the financing of small businesses in the municipality of San José de Cúcuta were identified. The study is  part  of  the  empirical-analytical  paradigm and  the  quantitative  approach, has  a non- experimental - transectional design, and uses two types of statistical analysis: descriptive and inferential (covariance). The sample consisted of 129 small businesses, and this group of participants was applied a questionnaire consisting of 12 questions. The instrument was validated through expert judgment, a pilot test and Cronbach's alpha statistical validity of 0.88. The results show that small businesses in the city start with their own or family resources in most cases, although they subsequently use different types of financing sources. The low amount credits, relatively short payment periods, high interest rates in a significant number of cases, and the absence of credits from public entities stand out. Eight inter-element correlations were also identified. It is concluded that there is little use of public funding sources for business support.