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The Impact Of Financial Decisions And Trategy On Small Business Competitiveness

Author

Listed:
  • Alejandra López Salazar
  • Ricardo Contreras Soto
  • Rafael Espinosa Mosqueda

Abstract

This paper examines the financial decisions made by companies, the strategies that organizations follow, the alignment between these two variables, and the relationship of financial decisions to the level of competitiveness. Two hundred two businesses’ testimonies in the region of Celaya were analyzed. The results show that most micro and small enterprises make funding decisions in a certain way, apply an intensive strategy, also that their market longevity is low and their level of sales is regular, implying that Mexican companies lack competitiveness, which hampers their development and expansion. The emphasis that companies place on certain financial decisions is not always appropriate for the type of business strategy being implemented. Likewise, companies that efficiently manage their short-term assets and liabilities are more competitive, as evaluated by their longevity on the market.

Suggested Citation

  • Alejandra López Salazar & Ricardo Contreras Soto & Rafael Espinosa Mosqueda, 2012. "The Impact Of Financial Decisions And Trategy On Small Business Competitiveness," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 6(2), pages 93-103.
    • Handle: RePEc:ibf:gjbres:v:6:y:2012:i:2:p:93-103
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    Citations

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    Cited by:

    1. Balushi, Yasmeen Al & Locke, Stuart & Boulanouar, Zakaria, 2018. "Islamic financial decision-making among SMEs in the Sultanate of Oman: An adaption of the theory of planned behaviour," Journal of Behavioral and Experimental Finance, Elsevier, vol. 20(C), pages 30-38.

    More about this item

    Keywords

    Small business; competitiveness; strategy; financial decisions;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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