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The Premature Mortality of Micro and Small Enterprises

Author

Listed:
  • Pérez-Campdesuñer Reyner

    (Universidad UTE, Faculty of Law, Administrative and Social Sciences. Quito, Ecuador.)

  • Sánchez-Rodríguez Alexander

    (Universidad UTE, Faculty of Engineering Sciences and Industries. Quito, Ecuador.)

  • García-Vidal Gelmar

    (Universidad UTE, Faculty of Law, Administrative and Social Sciences. Quito, Ecuador.)

  • Martínez-Vivar Rodobaldo

    (Universidad UTE, Faculty of Law, Administrative and Social Sciences. Quito, Ecuador.)

  • Ruiz-de la Peña Jenny

    (Universidad de Holguín, Faculty of Informatics and Mathematics. Holguin, Cuba.)

  • de Miguel-Guzmán Margarita

    (ATALANTIC Higher Technological Institute, Department of Administration. Santo Domingo, Ecuador.)

Abstract

The economy of Ecuador is characterized by a high predominance of micro and small enterprises. Multiple of these organizations are created each year and, as a general rule, the highest percentage die in their first year. Which is a strong reason for the abundance of research aimed at understanding the nature of their behavior. These studies assume different streams of analysis, which are developed from dissimilar areas of knowledge. This particular research seeks to evaluate how multiple variables affect the high annual mortality rate shown by micro and small enterprises. For this purpose, the descriptive statistics of the behavior of the variables are initially used to later identify, through a discriminant analysis, the variables that best explain a possible closure, which are: the attitude of entrepreneurs to face risks and failures, their perseverance, as well as the effectiveness of the feasibility studies that support the birth of the ventures.

Suggested Citation

  • Pérez-Campdesuñer Reyner & Sánchez-Rodríguez Alexander & García-Vidal Gelmar & Martínez-Vivar Rodobaldo & Ruiz-de la Peña Jenny & de Miguel-Guzmán Margarita, 2023. "The Premature Mortality of Micro and Small Enterprises," Zagreb International Review of Economics and Business, Sciendo, vol. 26(2), pages 49-76.
    • Handle: RePEc:vrs:zirebs:v:26:y:2023:i:2:p:49-76:n:1003
    DOI: 10.2478/zireb-2023-0014
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    More about this item

    Keywords

    Entrepreneurship; Micro and small enterprises; Administration;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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