The Added Economic Value (EVA) in SMEs, case: sausage factory "La Ibérica" of the city of Riobamba

Abstract

Value creation in enterprises is a relatively novel concept in the country's economic and micro-enterprise environment, most SMEs use traditional indicators to measure the degree of liquidity, efficiency, profitability and indebtedness; however, they have great limitations in the face of new scenarios related to possible mergers, strategic integrations, buying sale, among others; even in the face of the possibility of capital expansion from internal and external sources.

This research aims to evaluate the financial management of the Jorge Jara Vallejo Sausage Factory "La Ibérica Cía. Ltda." of the city of Riobamba, in order to establish its degree of relationship with the generation of Added Economic Value (EVA); this financial indicator can be calculated for all types of companies, and its characteristic is that it integrates all costs and expenses incurred by companies over a period, including capital costs that are generally not considered in the traditional financial assessment when establishing the economic and financial situation of the company.

The topic is of current relevance and invites the implementation by entrepreneurs and financial managers of new approaches to decision-making.  The research is descriptive in nature and came from the organization, analysis and quantitative interpretation of the financial statements and the collection of qualitative information provided by the administrative and financial staff of the company. The results demonstrate a highly positive correlation between EVA and Financial Management. It concludes in the need for financial strategies that allow greater creation of added value or wealth for its owners in a sustainable way in the short and long term.