Economy

Definition of disruptive innovation

Disruptive innovation is a type of innovation that creates radical change in a market or industry by introducing products or services that, although initially may be lower performing compared to existing ones, eventually capture a large part of the market due to their simplicity, accessibility or reduced cost. It usually transforms the shape […]

Definition of consumer behavior

Consumer behavior is the behavior of an individual or a group of people when purchasing a product or contracting a service. The concept refers to how a subject chooses to use the resources they have to achieve the satisfaction of their needs or desires. It should be noted that the idea of ​​behavior refers […]

Definition of liquidity risk

Liquidity risk is the possibility that an entity (whether a company, financial institution or individual) will be unable to meet its short-term financial obligations due to a lack of liquid assets or because it cannot convert its assets into cash quickly without suffer significant losses. It is a common risk in […]

Definition of internal audit

An internal audit is a supervision process that aims to detect errors and flaws in an entity's procedures. It is a control mechanism that consists of examining, in an orderly manner, methodologies and practices with the aim of improving them and confirming that they comply with certain criteria or standards. […]

Definition of informal economy

Informal economy is a concept that refers to all companies, workers and economic activities that are not regulated by the State. Therefore, they do not have legal protection nor do they fall within the current regulatory framework. It is important to indicate that the actors of the informal economy produce services and […]

Definition of distribution channels

Distribution channels are all those steps, means or paths that allow a product or service to reach the final consumer. The circuit begins with producers or manufacturers and involves, for example, distributors. These distribution chains require strategic planning, good logistics and optimal management in order […]

Definition of emerging markets

Emerging markets are nations that show a trend of economic growth and have the potential to further increase their commercial and productive activity. However, these countries suffer from a situation of both financial and political instability. It is often stated that emerging markets are developing economies: they are in a transition between underdevelopment […]

Definition of knowledge economy

The knowledge economy is the set of economic activities that demand high intellectual capital and stand out for the use of information and communication technologies (ICT). That is why its value is considered to lie in the generation and application of ideas. Before moving forward it is important to analyze […]

Definition of solidarity economy

The solidarity economy is a productive organization model based on people's needs. Unlike the traditional system that privileges capital, in this case economic activities are based on solidarity, self-management, equality, care for the environment and other principles. Before moving forward with the definition, it is […]

Definition of customer retention

Customer retention is a concept that refers to the set of actions developed by a company to ensure that its buyers or users continue choosing its products or services. This is the strategy put in place in order to build loyalty. The idea of ​​retention refers to preventing someone or something from disappearing […]