Mergers Of Private Enterprises: A Powerful Force For The Development Of Private Business Organizations In Latin America - The Case Of Ecuador

Abstract

The purpose of this article was to assess the scale of mergers of small and medium-size private business organizations in Ecuador over the past ten years and to determine if the ownership and management of such enterprises have the desire in merging with other Ecuadorian business organizations. Such mergers create larger business enterprises that allow the appearance, sustenance, and development of the principles of organization and precipitate the need for commensurate managerial education for their management and ownership. It was determined, in this study, that only a very limited number of mergers have taken place during the past ten years  and that the entrepreneurial mindset of business owners and their managers is not favoring mergers. The ownership and management of small and medium-size Ecuadorian business organizations do not understand the benefits derived from mergers. The study noted that Ecuador’s business owners and their managers are traditionally accustomed to operating with obsolete management methods and controls that suppress opportunities leading to organizational development.