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Microenterprise Market Entry And Its Relationship With The Life Expectancy Of Informal Microenterprises In Mexico, La Entrada Al Mercado De Las Microempresas Informales En Mexico Y La Relacion Con Su Expectativa De Vida

Author

Listed:
  • Jose G. Aguilar Barcelo
  • Natanael Ramirez Angulo
  • Carlos Hernandez Campos

Abstract

Using data from the National Survey of Micro Businesses and the National Survey of Urban Employment (Mexico), we determined the motivations for starting a business and the life expectancy of informal micro entrepreneurs for the period 1994-2008. The results demonstrated greater growth in the informal microenterprise sector and a longer life expectancy. The results also show a tendency by entrepreneurs to select an informal business model as a profitable way of doing business. As per market entry, established small businesses enter a new market voluntarily while self-employed microenterprises enter a new market involuntarily.

Suggested Citation

  • Jose G. Aguilar Barcelo & Natanael Ramirez Angulo & Carlos Hernandez Campos, 2011. "Microenterprise Market Entry And Its Relationship With The Life Expectancy Of Informal Microenterprises In Mexico, La Entrada Al Mercado De Las Microempresas Informales En Mexico Y La Relacion Con Su ," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 4(4), pages 1-14.
    • Handle: RePEc:ibf:riafin:v:4:y:2011:i:4:p:1-14
    as

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    References listed on IDEAS

    as
    1. Bosch, Mariano & Maloney, William F., 2010. "Comparative analysis of labor market dynamics using Markov processes: An application to informality," Labour Economics, Elsevier, vol. 17(4), pages 621-631, August.
    2. Alejandro Mungaray & Martn Ramrez-Urquidy & Michelle Texis & David Ledezma & Natanael Ramrez, 2008. "Learning Economics by Servicing: a Mexican Experience of Service-Learning in Microenterprises," International Review of Economic Education, Economics Network, University of Bristol, vol. 7(2), pages 9-38.
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    More about this item

    Keywords

    parallel economy; informal microenterprise; entrepreneurship motivation; life expectancy at birth; Weibull distribution;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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