A Note On The Formal And Informal Sector Economies In Mexico: How Strongly Does Social Network Theory Explain Microentepreneurial Success?

Abstract

Previous studies examining the effects of social network theory have largely been conducted in the context of highly industrialized and economically robust countries. In contrast, Mexico is a developing country that has historically experienced extreme poverty, low productivity and significant financial problems. And despite being the 15th largest nation and the 13th largest economy by volume, it is a country where only until recently a sketchy picture of the smallest of entrepreneurs and his/her activities have begun to materialize. This paper outlines an effort to add substance and contrast to this picture, and argues that social network theory may actually depict two vastly different portraits of entrepreneurship in Mexico.