Variables determining the growth of micro and small businesses

Abstract

Both developed and emerging nations share a high proportion of SMEs in their economic structure. For developing countries like Mexico, this situation can represent development opportunities. In this context, the objective of this study is to statistically analyze the relationship between the variables finance, technology, competition and human resources, with the variable dependent on business growth in the micro and small companies of southern Sonora. To do this, we propose a structural model, tested through the model of structural equations with estimated panel data and a contrast of said results through a multiple linear regression model. The sample size reached was 65 companies and the information was collected through interviews. The results through structural equation models and linear regression show that there is a positive and statistically significant relationship between viable technology and competition with business growth, not being so with the variables finances and human resource, when not being significant, concluding that the variables technology and competition explain the behavior of the dependent variable (business growth). The findings are consistent with those found in other research conducted in other countries.