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Entrepreneurship Under Severe Adverse Conditions: The Northwest Mexican Case

Author

Listed:
  • José Gabriel Aguilar Barceló
  • Alejandro Mungaray Lagarda
  • Martín Ramírez Urquidy
  • Natanael Ramírez Angulo

Abstract

We analyzed the performance of marginalized subsistence microenterprises, through dichotomous logistic regressions by maximum likelihood. We tested 52,224 hypotheses, trying to find behavior patterns on microenterprises. The results show that performance is the result of a combination of factors related to the owners and the decisions made by them on their entrepreneurial environment, if measured as an approximation of the success/failure ratio. It is possible to know many of these variables before the business starts. In addition, some variables did not show the expected relation; this suggests that these projects deserve a different treatment than the formal micro and small enterprise. These factors may well influence the design of microenterprises’ assistance programs, micro loans and the establishment of commercial areas that allow an enhanced micro entrepreneur profile.

Suggested Citation

  • José Gabriel Aguilar Barceló & Alejandro Mungaray Lagarda & Martín Ramírez Urquidy & Natanael Ramírez Angulo, 2011. "Entrepreneurship Under Severe Adverse Conditions: The Northwest Mexican Case," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 2(1), pages 89-101.
    • Handle: RePEc:ibf:rbfstu:v:2:y:2011:i:1:p:89-101
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    More about this item

    Keywords

    Small business; marginalization; performance; logit; maximum likelihood.;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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