Internal control in micro, small and medium-sized companies in Tejupilco Mexico

Abstract

The goal of this study is to identify the internal control of micro, small, and medium-sized enterprises (MSMEs) engaged in commerce in Tejupilco, State of Mexico, 2020, with a sample of 300 businesses chosen at random. The study is both descriptive and correlational. To obtain this information, a questionnaire with questions about internal control elements and sociodemographic data on a Likert scale was created. The variables that explain the model in the sociodemographic results are age, marital status, and personnel under their command. In terms of internal control implementation, 106 are at a low level, 101 are at a medium level, and 87 are at a high level. The most significant roadblocks were a lack of an organisational structure, training, delegation of responsibilities, providing employees with a social benefit, staff turnover due to a lack of stable economic remuneration, a daily record of operations, information interpretation by a trained person, and the use of information technologies. The proposed model is explained by a significant correlation between the internal control components and sociodemographic data. According to the findings of the research, MSMEs do not have formal internal control factors that help to improve their management. Because they are interconnected, proper functioning will lead to an efficient use of economic, human and technical resources.

Keywords:

Internal control, trade, competitiveness, management, productivity.