The Influence of the Legal Environment on Performance of Small and Large Enterprises in Venezuela
Abstract
The study investigated the influence of the legal environment on the performance of small and medium enterprises in Venezuela. A descriptive research design was utilized in the study. The survey covered 34 small and large enterprises in Venezuela. A census was conducted in the investigation since the focus population was small and manageable. The unit of observation included the managers, supervisors and support staff. Questionnaires with closed-ended questions were administered directly to the respondents. The data were analyzed using descriptive and inferential statistics. The descriptive statistics entailed the frequencies, mean and standard deviation, while inferential statistics comprised of the correlation and the regression analysis. Analysis of variance was utilized to determine whether the overall model was statistically significant. The findings of the study reported that legal factors that influenced the performance of the small and large enterprises in Venezuela were liberation in management, levels of consumer protection, economic regulation on price ceiling, licensing requirements, competition regulation, export subsidies, trade tariffs, import quotas and level of taxes. The study concluded that the legal environment was positively and significantly related to performance. The study recommended that small and large Enterprises in Venezuela be granted democracy in their leadership style and not dictated on who be involved in the management.
Keyword: Legal environment, performance, small and large enterprises, Venezuela
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