Microfinance institutions and efficiency

Microfinance Institutions (MFIs) are special financial institutions. They have both a social nature and a for-profit nature. Their performance has been traditionally measured by means of financial ratios. The paper uses a Data Envelopment Analysis (DEA) approach to efficiency to show that ratio analysis does not capture DEA efficiency.Special care is taken in the specification of the DEA model. We take a methodological approach based on multivariate analysis. We rank DEA efficiencies under different models and specifications; e.g., particular sets of inputs and outputs. This serves to explore what is behind a DEA score. The results show that we can explain MFIs efficiency by means of four principal components of efficiency, and this way we are able to understand differences between DEA scores. It is shown that there are country effects on efficiency; and effects that depend on Non-governmental Organization (NGO)/non-NGO status of the MFI

Investment projects and financial viability.

In the Interior Design industry, there is often a fear of buying new products because it does not exist any kind of program that shows exactly how the final decoration will look. The industrial design is nowadays just offering 2-D planes that are very far from showing a realistic view. There are only a few companies that offer 3-D computer programs, but even those are not accurate at all and they have many limitations. On the other hand, there is a promising technology; the augmented reality, which adds virtual information to the existing physical information and which has great advantages. Due to this reason, I did not want to lose the opportunity of using augmented reality to give to all customers the possibility to be sure of their purchase, and at the same time to help interior design businesses to increase their sales by having this augmented reality service available in their stores. This technology has been already used in different fields of life and it has become one of the most revolutionary technologies of the moment and with the highest boom of popularity. Although, at the same time, this technology is still to be developed in the interior design industry and, in addition, it has a wide range of possibilities for the future that I want to consider for my business and I will explain in this document. Nowadays, when someone wants to make a purchase of furniture for a house, they have to mentally imagine how the new furniture will look in the house, they could measure the sizes of the new furniture and calculate if it fits in the space that they have saved for it, but they will never be sure if it would match with the whole decoration because it is very difficult to imagine it perfectly. Even if a 3D computer program is used to see the final look of the new room, it will not be as realistic as if they could use Augmented Reality glasses to see it. My proposal for the new business is to create a software that transforms a video taken from a mobile device into an augmented reality video. In this way, anyone could record a video of their home, recording a panoramic view of each room and with our software, furniture shops, real state agents, or any business of the sector could transform that video into an augmented reality video, that with the help of the augmented reality glasses that person would be able to observe how the new furniture will look in their houses. This company (TECNOLIS) will be created in a period of technological advances and globalization, and I want to compete in a global market. This is why I will accept any means of payment contrasted as a payment through mobile, Bitcoin between others. My Main goal for this project is to create a business plan to know if my business idea could be profitable or not in the future. I have tried to choose an innovative business idea, which at first sight has many possibilities to succeed in the future. To get this I will firstly study the general and specific environment of the company. After this I want to study the different strategies that I will follow in marketing, human resources and logistics. Finally, I will make a financial analysis to know if the project is viable economically, because the initial budget of the project is not going to be very high, it might increase when the first positive results of the company appear

The role of organisational factors and environmental conditions on the success of newly founded firms

This study examines the influence of founding conditions and decisions on new companies' performance, analysing how both environmental context and organisational dynamics interact to determine their success. It distinguishes between two different success indicators: survival and profitable growth. An empirical study conducted using a sample of 3,722 new agri-food companies in two different periods, one of economic stability and the other of recession, showed that founding conditions had long-lasting effects on post-entry performance. The economic context acted as a moderator of the relationship between individual factors and success. Adverse environmental conditions were also a determinant of success, making surviving firms more competitive and resilient. The results reflect the survival of the fitter principle by showing that early profitability reduced the risk of failure and made firms more likely to become profitable in the medium term. Internationalisation strategies developed organisational capabilities that created an imprint for adaptability and growth

An approach to the measurement of intangible assets in dot com

A sample of 40 firms that operate on the Internet is studied to explore ways of identifying and measuring intangible assets in this area of business. The firms meet three conditions: operate on the Internet, have available accounting information, and are quoted on the stock exchange. Data was obtained for four web metrics indicators, 30 ratios that combine accounting and web traffic information, and a measure of efficiency based on Data Envelopment Analysis. Modelling relied on multivariate statistical approaches. Two intangible assets were identified: one was related to internal structure and was associated with managerial efficiency in achieving an impact in the Internet; and another one was associated with external image and customer loyalty.Se estudia una muestra de 40 compañías que operan en internet para explorar maneras de identificar y medir bienes intangibles en esta área de negocios. Las empresas cumplen tres condiciones: operar en internet, tener información de contabilidad disponible, y ser citados en el intercambio de bienes. Se obtuvieron datos de cuatro indicadores métricos de páginas web, 30 ratios que combinan información de tráfico y un sistema de eficiencia basada en Data Envelopment Analysis. El modelaje recayó en diversos acercamientos estadísticos. Se identificaron dos variables intangibles: una en relación con la estructura interna, y asociada con la eficiencia de manejo en conseguir provocar una reacción en internet, y la otra estaba asociada con la imagen externa y la lealtad de los clientes

Predicting startup survival using first years financial statements

Numerous articles demonstrate the usefulness of financial ratios in predicting the bankruptcy of companies, but in the case of new companies their usefulness is questionable. Many of the firms that are successful today made few profits when they were first created. On the other hand, structural inertia from the theory of organizational ecology and the “survival of the fitter” principle advocate that companies that are healthy in their early years will go ahead in greater proportion than those that start with many difficulties. Our empirical study used financial data from a sample of 6, 167 newborn Spanish startup companies, analyzing their evolution up to eight years later. We found healthier financial indicators in the first years of startup companies that survived eight years than in those that failed, supporting the organizational ecology theory. We found statistically significant differences in profitability, productivity, liquidity, leverage, and size. The models developed showed predictive capacity, but they did not reach that of the bankruptcy models made with mature companies. The analyzed period corresponded to a period of economic crisis. The study was repeated with data from another noncrisis period to enhance the validity of the results, and obtained similar results

Firm and country characteristics related to cumulative contribution to society

Purpose: Many indicators attempt to measure the social performance of a company from different perspectives. Grounded in stakeholder theory, this paper aims to propose capitalising the economic value distributed annually to society over a period of time, hereafter called a firm’s cumulative contribution to society (CCS). This can be done by including everything that stakeholders value; for example, payments of taxes, remuneration of employees, payments to suppliers and creditors, donations, dividends, research and development expenses and efforts to improve the environment. Design/methodology/approach: First, this paper makes a methodological proposal about how to calculate the CCS and discusses potentials and shortcomings. Then, a set of hypotheses are formulated about the firm characteristics and country attributes that make the most positive contribution to society such as business models, financial performance, a country’s human development, income equality and the extent of its shadow economy. The authors also argue that a company that originally contributes to society will continue to do so because of the structural inertia faced by organisations. The hypotheses were validated with an empirical study conducted with a sample of 9, 276 new-born European companies. Findings: The most significant contributors to society are large, profitable companies, which are leveraged but solvent, with high asset turnover and high-profit margins and which are productive and pay high wages. Unfortunately, this win-win situation describes a small percentage of the explained variance, which can explain why social and financial performance sometimes do not go hand-in-hand. The paper identifies features of other types of companies that contribute to society, suggesting criteria for socially responsible investors. Country development favours the cumulative contribution that firms make to society. Research limitations/implications: Most accounting systems do not collect all the information necessary to calculate a refined version of the indicator such as percentage of purchases from local suppliers, percentage of salaries for executives and disabled employees and percentage of financing from socially responsible financial entities. The authors encourage modification of the accounting systems to include those aspects. Practical implications: This paper identifies several types of companies that contribute the most to society from a modest set of financial indicators. Socially responsible investors can estimate their contribution to society, devising new investment criteria. Social implications: The paper identifies several types of companies that contribute the most to society from a modest set of financial indicators. Socially responsible investors can estimate their contribution to society, devising new investment criteria. Originality/value: The paper makes two contributions, one methodological and the other empirical. By applying a financial methodology, the authors propose to capitalise the contributions of a company over a period of time. The empirical study identifies both firm and country characteristics that explain CCS

The relationship between microfinance mission drift and financial returns to stakeholders

Some microfinance institutions (MFIs) can drift from their social mission, generating well-studied effects for their borrowers. We focus on the lesser-known effect of mission drift on the financial return to other stakeholders (employees, government, micro-savers, and banking creditors). Using a sample of 534 MFIs, we calculated the economic value distributed by the MFI to these stakeholders by considering salaries, taxes, and interest paid. We found a negative relationship between average loan size and return to employees (RTE), government, and banking creditors, and a positive relationship between women borrowers and RTE and government. This is explained by the fact that mission-focused MFIs are usually small, labor-intensive institutions with a stable business model. We found a positive relationship between average loan size and return to micro-savers, and a negative relationship between women borrowers and return to micro-savers. The reason is that many mission-focused MFIs do not offer micro-savings, undermining financial inclusion

Eficiencia en instituciones de microfinanzas

Microfinance Institution (MFIs) are special financial institutions. The have both a social nature and a for-profit nature. Their performance has been traditionally measured by means of financial ratios. The paper uses a Data Envelopment Analysis (DEA) approach to efficiency to show that ratio analysis does not capture DEA efficiency. Special care is taken in the specification of the DEA model. We take methodological approach based on multivariate analysis. We rank DEA efficiencies under different models and specifications: e.g. particular sets of inputs and outputs. This serves to explore what is behind a DEA score. The results show that we can explain MFIs efficiency by means of four principal components of efficiency, and this way are able to understand differences between DEA scores. It is shown that there are country effects on efficiency; and effects that depend on Non-governmental Organizations (NGO)/non-NGO status of the MF

Plan de negocios para un comercio electrónico. Salall S.L.

Con este trabajo queremos demostrar si es rentable la creación de una empresa online (Salall S.L.) en el sector de las zapatillas de futbol sala. Para ellos hemos realizado los análisis pertinentes que forman un plan de negocio. En primer lugar, hemos explicado cual es la información general para llevar a cabo el proyecto, así como los objetivos y los datos básicos de este. Posteriormente hemos realizado un análisis general y específico. De esta forma podremos averiguar cómo se encuentra el sector de las zapatillas de futbol sala y los agentes que lo integran. A continuación hemos llevado a cabo un plan de marketing, tratando aspectos de gran relevancia como las cuatro P’s del marketing. Seguidamente hemos procedido a realizar un estudio técnico, donde analizamos los elementos necesarios que debería tener la empresa. Todos los análisis realizados se transforman en números bajo un plan financiero con un horizonte temporal de cuatro años. Todas las previsiones realizadas a lo largo del trabajo han sido aplicadas bajo un entorno moderado-optimista con tasas de crecimiento relativamente altas. Finalmente, dentro del apartado financiero, los indicadores VAN y TIR son adecuados, indicándonos que el proyecto es viable y rentable

Digitalización y modernización de una empresa tradicional

El presente trabajo nace con la finalidad de demostrar como de rentable le resultaría a una panadería-pastelería tradicional y familiar modernizar y expandir su empresa hacia nuevas líneas de negocio como podrían ser el comercio online y la apertura de un espacio de cafetería y degustación. Para ello, hemos analizado todos los apartados integrados dentro de un plan de negocios. En primer lugar, hemos empezado por realizar un análisis de los entornos general y específico a los que se enfrenta Panpartú, con motivo de conocer la situación en la que se encuentra el mercado, el sector y quiénes son nuestros competidores principales y cómo les va. Seguidamente, hemos llevado a cabo la explicación de nuestro plan estratégico, complementado con un plan de marketing, tratando aspectos que nos permitan dar a conocer la empresa, productos y servicios. Todo ello a través de diferentes metodologías que nos permiten dimensionar el tamaño de Panpartú. Finalmente, una vez visto y desarrollado el funcionamiento de la empresa, traducimos la información analizada a números a través de un plan financiero, de viabilidad y rentabilidad para un horizonte temporal de 5 años, finalizando el trabajo con una serie de posibles riesgos a sufrir y de los aspectos legales a tener en cuenta para las unidades de negocio