Institutional presence and business formalization cohesión or alternative
https://orcid.org/0000-0002-2967-5509
Studies on micro, small, and medium-sized enterprises (MSMEs) have evolved significantly; for this reason, this research arises from the question: Does the government’s presence—as represented by tax offices in local communities—have a direct, tangible impact, an imperceptible impact, or no impact at all on the consolidation, strengthening, and formalization processes of businesses? In response, this article will provide evidence as to whether the state’s presence has an impact on the formalization and institutional compliance of MSMEs. The methodological framework employs an explanatory research design and adopts the hypothetical-deductive method. Using a sample of 254 enterprises in the department of Tolima, Colombia—all of which have been in business for three or more years and are registered with the commercial registry—the distance between the center of operations and tax offices is categorized into three ranges: (0–1 km); (2–5 km), and (6 km or more), applying a logarithmic calculation to the exponential possibilities of impact on profits resulting from compliance with formalization requirements. The overall results show that the influence of institutional presence has a positive impact on the formalization process; however, for firms located far from government agencies and offices, the model indicates that profits are higher for these organizations. Finally, the main contribution is to demonstrate that the formalization process takes precedence over any legislative compliance and is more a response to business growth and entrepreneurs’ efforts to remain in the market.
Abarca Jimenez , G. (2019). La Semiformalidad en las microempresas. El caso de la región de Brunca, Costa Rica . Tec Empresarial , 3-18.
Aguilar-Barceló, J. G., Texis-Flores, M., & Ramírez-Angulo, N. (2011). Conformación de la expectativa de formalización de la microempresa marginada en México. Innovar, 63-75.
Arruñada, B. (2007). El Imperativo de Eficacia en la Formalización de Empresas. Revista de Globalización, Competitividad y Gobernabilidad, 1(1), 106-115.
Baldeos Ardián, L. A., Neri Ayala, A. C., Ramos y Yovera, S. E., Villanueva Cadenas, D. I., Campos , G. A., & Collantes, R. A. (2024). Informalidad y desempeño económico: una aproximación inicial desde la percepción de los empresarios en la región Lima, Perú. Suma de Negocios, 15(32), 1-7. doi:https://doi.org/10.14349/sumneg/2024.V15.N32.A1
Briñez, A., Hurtado, A., Aspriella, K., & Lopez, C. (2024). TRANSFORMACIÓN DEL CONTROL FISCAL EN BENEFICIO DE POBLACIONES CON ENFOQUE DIFERENCIAL. ECONOMÍA COLOMBIANA, 66-75.
Camacho, A., Conover, E., & Hoyos, A. (2009). Effects of Colombia’s Social Protection System on Workers’ Choice between Formal and Informal Employment. Bogota : CEDE .
De Soto, H., Ghersi, E., & Ghibellini, M. (1987). El otro sendero. Lima Perú: Oveja Negra.
DNP. (2017). Documento Conpes 3856 Politica de Formalización Empresarial . Bogota : Presidencia de la Republica .
Farné, S. (2014). DO PAYROLL TAX REDUCTIONS ENHANCE EMPLOYMENT? POLICY LESSONS FROM COLOMBIA. Brazilean Journal of Latin America Studies, 13(24), 27-41.
Fernández, C. (2020). Informalidad Empresarial en Colombia. Coyuntura Economica, 133-168.
Forero Mendoza, A., Garrido Hurtado, D. L., & Valderrama Cardona, E. A. (2021). Dinámicas productivas y empleo en el norte de Caquetá: un análisis del mercado laboral regional. Conocimiento Global, 6, 526-540.
Herrera Mora, C. (2018). Formalmente Informales. Bogota: Paidos.
Loayza, N. (2006). “The economics of the informal sector: A simple Model and Some Empirical Evidence from Latin America”. Carnegie-Rochester Conference Series on Public Policy (págs. 129–162). Rochester.: Carnegie.
Mago, E., & Modiba, F. S. (2022). ¿Es importante la financiación informal para las micro y pequeñas empresas en África? Small Business International Review, 1-16.
McKenzie, D., & Sakho, S. (2010). Does it pay firms to register for taxes? The impact of formality on firm profitability. Journal of Development Economics, 91, 15-24.
Merwan, D., & Faouzi, S. (2025). THE IMPACT OF THE INFORMAL ECONOMY ON ECONOMIC DIVERSIFICATION IN ALGERIA. Journal of Excellence for Economics and Management Research, 9(01), 482-501.
Ramírez Gómez, M. A. (2010). Los costos de transacción tienen profundas implicaciones en la estructura organizacional. Revista Ciencias Estratégicas, 43-58.
Rodriguez Soto , J. R., & Dussan Pulecio , C. (2018). La informalidad empresarial, evolución literaria que denota un fenómeno complejo. Polo de Conocimieto, 3(8), 561-578.
Rodríguez Soto, J. R., & Gutiérrez Londoño, E. E. (2021). CARACTERÍSTICAS DEL TEJIDO EMPRESARIAL Y LA COMPRENSIÓN DE LAS REGIONES EN COLOMBIA: CASO TOLIMA. CONOCIMIENTO GLOBAL, 234-332.
Rodríguez Soto, J. R., & Hernandez Sanchez, J. (2014). Las sociedades por acciones simplificadas entre la flexibilidad societaria y la formalización del emprendimiento empresarial. Revsita Universidad Catolica del Norte UCN, 1(41), 123–136. Obtenido de http://34.231.144.216/index.php/RevistaUCN/article/view/470
Rozo , V. S., & SantaMaría , S. M. (2009). (2009). Análisis cualitativo y cuantitativo de la informalidad empresarial en Colombia. Desarrollo & Sociedad, 269-296. Desarrollo & Sociedad, 269-296.
Shi, Y., Gong, L., & Chen , J. (2019). Effect of Financing on Firm Innovation: Multiple Case Studies on Chinese Manufacturing. Enterprises. Emerging Markets Finance and Trade, 55(4), 863-888. doi:10.1080/1540496X.2018.1478284.
Temlali, Y. (2019). Algeria: Informal Economy and the Black Market of the Economic Decision-Making. North Africa : Rosa Luxemburg Foundation.
Ulyssea, G. (2018). "Firms, informality, and development: Theory and evidence from Brazil.". American Economic Review, 2015-2047.
Zerrouki, D., Dahmani, R., & Chebbah, R. (2022). The Impact of Education Government Expenditure on the Informal EconomySize in Algeria. Journal of Studies in Economics and Managent, 5(2), 389-407.