Methodology

For the year 2015, 1450 cooperatives were registered in Colombia before the Superintendence of the Solidarity Economy, 147 in Valle del Cauca and to date 70 such organizations have been registered in the Chamber of Commerce of Cali. To conduct a deeper and more detailed study,

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it was focused only on the cooperatives established in the city of Cali, which were analyzed throughout the research process. According to the Chamber of Commerce, of the 70 registered cooperatives, 40 are multiactive, 26 of associated work, 2 are integral, 1 specialized in savings and credit and 1 classified as a pre-associated work cooperative.

Taking into account the population under study, for research purposes a sample of 65 active cooperatives formally established between 2009 and 2015 and registered in the Chamber of Commerce of the city of Cali were chosen. During this period, information was obtained from each organization, which was extracted through the application of a survey of the entrepreneurs or managers of the organizations studied in the months of March and April 2016 and the database provided by the Chamber of Commerce of Cali. A group of interviewers and the researchers visited the cooperatives by appointment and other visits were made without appointments.

In this investigation, the Multiple Linear Regression Analysis was used to establish the relationship that is generated between a dependent variable, in this case the Economic, Social and Environmental factors, and a set of independent variables, such as the knowledge and Skills of the Entrepreneur (KSE), each with its items or indicators and the Internal Factors of the Company (CIF). This is how the model equation would be represented: Y = a + blxl + b2x2 + ... + bnxn + e, where Y is the dependent variable to predict how the skills, knowledge and internal factors of the companies have a direct reaction or not with the economic, social and environmental factors and an and b are the parameters that are unknown and are going to be estimated.

Literature development and review

There are various modalities of entrepreneurship and one of them precisely impacts a change in society which in turn benefits not only an owner or a single entrepreneur but also several people. This is what is known as social entrepreneurship, which was introduced by Bill Drayton, who founded the Association of Innovative Social Entrepreneurs in the United States (ASHOKA, 2009). The social entrepreneur innovates and generates social change3 for the benefit of a community, region or country.

Another nuance of entrepreneurship is known as cooperative entrepreneurship, which has its beginnings at the time of the industrial revolution (1844). Its history stands out as a group of workers of a textile company in England who made the decision to form their own company, thus leaving the exploitation processes where they were submitted by an employer (Serrano, 2007). The cooperative entrepreneur starts his business through a company collectively form, non-profit or for profit, depending on the legislation in the countries, that benefits only the people who make up the collective organization, whether as partners or

The relationship with knowledge 195 associates. And finally, there is a traditional venture that is characteristic of capitalist companies where individual capacities and profitability prevail in the hands of a few people or an individual entrepreneur.

To be able to create a company, you must start by recognizing an entrepreneurial opportunity, a definition of this could be: “Entrepreneurship opportunities are those situations in which new goods, services, raw materials and organizational methods can be sold and introduced at a price higher than its production costs”. In order to define entrepreneurship, it is necessary to mention the first person to introduce a contribution to this topic in the economic literature, Cantillon, who defined the entrepreneur as the “agent that buys the means of production at certain prices and combines them in an orderly way to get a new product from there”. In addition, he says that the entrepreneur does not have a safe return on his economic activity and is the one who assumes the risks that may arise in the market. Subsequently, Burnett the French economist, affirmed that the entrepreneur is “a new leader, forecaster, risk taker and project evaluator, and that mobilizes resources from a low performance area to a high productivity one”. In addition to this, he highlighted the importance of entrepreneurship for society in general, rather than for a single individual (Formichella, 2004).

Subsequently, the Austrian school emphasizes this issue, which says that the entrepreneur is the one who identifies opportunities in the market using his knowledge and being creative when entering it. In the same way, they say that importance should not be given to the outcome but to the market process, and the importance of competition, since this is what leads to discovery and creativity (Perdomo Charry, 2010). Social entrepreneurs have taken great strength in the business world. These types of entrepreneurs have considered social needs as an opportunity and not as a problem, seeking in this way to contribute and improve the well-being of the individuals who together represent a community. According to the European EMES research network created in 1996, the social enterprise “is defined as an organization created in order to achieve a goal related to benefiting a community”.

This company is made up of a number of people who seek to achieve their objectives through cooperation, and where the dynamics of profits vary from a conventional capitalist company. In this case, dividends are generally reinvested in the company in order to improve the product or service they offer and finally contribute more effectively to the social problem that is being worked on. In this order of ideas, “entrepreneurship implies turning a new idea into a successful innovation using skills such as vision, creativity, persistence and risk exposure” (Grau, 2012). As Pomerantz states, social enterprises must be based on traditional and innovative business methods, with the purpose of incorporating strategies that lead them to success in a faster and safer way.

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The theory of solidarity entrepreneurship arises from the analysis carried out by Gide (1968), who states:

the associations in which workers will perceive the integral product of their work, because they will possess their production instruments; associations that will suppress the intermediaries, because they will change their products directly, associations that will not mutilate the individual because the individual initiative will be preserved as the hidden spring that will move each one of them and that on the contrary will protect against the hazards of the life through the practice of solidarity; associations, in short, that without suppressing the emulation that is indispensable to progress, will attenuate the concurrence and struggle, suppressing most of the causes that put men in conflict in our time.

From an economic perspective, there are other authors who write on the subject. Luis Razeto, with his experience in Chile, analyzed how certain communities undertook economic organizations with their own initiatives and resources in order to help themselves collectively. Razeto also proposes comprehensive economic theory with the aim of understanding social and solidarity relations and that make up a rationality different from state or market organizations. It also proposes factor C as that social energy that energizes the processes that are undertaken. The ultimate goal of a solidarity venture is not the maximization of the capital factor or the obtaining of profits, but to achieve better benefits for the greatest number of people and their communities.

Solidarity ventures have their particular characteristics that differentiate them in other ways: they are self-managed, since entrepreneurs are managers, workers and users of services. Solidarity economic ventures cover various forms of economic organizations that originate in the free association of workers based on principles of self-management, cooperation, efficiency and viability.

Figure 9.1 presents in a general way the basic model with each of the variables, both independent and dependent. The selection of the model is

Factors determining the success of the creation of SMEs. Source

Figure 9.1 Factors determining the success of the creation of SMEs. Source: elaborated by the authors.

The relationship with knowledge 197 based on or taken up from the proposal presented by the researchers Campos Climent et al. (2014) in their study on the determining factors in the success of the creation of small and medium enterprises: case of cooperatives in Spain.

It is worth noting that this same model was validated for the new cooperatives formed in Colombia in times of crisis or more specifically at the time of the peace dialogues between the years 2009 and 2015. The same latent variables proposed by the already mentioned researchers were maintained.

In this regard and in relation to the model, the research took into account the internal factors of the company, which were grouped into different functional areas: Marketing, Provisioning, Production, innovation, Human Resources, Finance and Management (Campos Climent et al., 2014) and how these influence social, economic and environmental factors. With reference to the individual level, the entrepreneur’s perceptions of the importance of internal factors in the creation and success of companies were taken into account. The idea with the empirical research process is to analyze the effects that these independent variables (internal company factors and the knowledge and skills of the entrepreneur) have on the degree of social, economic and environmental success (dependent variable) in a population of cooperative organizations little studied by researchers. The background of the investigations has shown results of these factors and the influence on success for capitalist or lucrative companies.

The theory states that the success of the entrepreneurial activity will depend on the knowledge and skills that the entrepreneur has. As examples of key factors in this process they are the ability to learn from the experience and training received.

On the other hand, the theory states that entrepreneurs who believe they have the appropriate knowledge and skills to create and develop a company tend to generate favorable expectations regarding results, although in other jobs it is expressed that entrepreneurs have more knowledge and skills to identify businesses or start businesses other than social ones (Alonso and Galve, 2006). The perspectives of entrepreneurs in the process of creating a company with respect to their internal factors can be a determining element in success (Baron, 2004).

Returning to Herron and Robinson, (1993), Barba and Atienza and Garcia, Martinez and Fernandez, in the words of Campos Climent et al. (2014). “The creation and success of a company depends largely on the motivation and skills of those who begin the process of creating a company; as indicated in other studies: entrepreneurs who consider they have appropriate skills and knowledge to create and develop a company, usually generate results and therefore business performance” (pp. 5-7).

According to what Veciana stated in relation to the business perspective and when analyzing the internal factors that determine success

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in creation, these factors are considered as strengths and can positively influence the success of the creation of companies, as stated or corroborated in other research projects (Alonso and Galve, 2006). The internal factors correspond to the main functional areas of the company, and these influence the success of the performance, as described and verified in research already carried out (Herron and Robinson, 1993; Alonso and Galve, 2006).

When some resources are scarce, it can also influence the difficulty of achieving success when the company is formed, as Gartner puts it. If the organization optimizes the use of resources, efficiency translates into economic advantages for it and for its stakeholders; that is, if the organization manages environmental processes, it will generate not only competitive advantage but the creation of new products or services that would be reflected in income. Given the previous reference, this study aims to verify the following hypotheses:

Hl. The economic factor of the newly created cooperatives is positively related to the knowledge and skills of the entrepreneurial group and the initial endowment of internal factors of the company.

H2. The social factor of newly created cooperatives is positively related to the knowledge and skills of the entrepreneurial group and the initial endowment of internal factors of the company.

H3. The environmental factor of the newly created cooperatives is positively related to the knowledge and skills of the entrepreneurial group and the initial endowment of internal factors of the company.

 
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