Microenterprise Origins and Efficiency in Mexico
AbstractThis study focuses on the technical efficiency of microenterprises. We use data from Mexico’s National Survey of Microenterprises to estimate a stochastic frontier production model, and we find that the reason the owner started the business is significant in explaining variations in the levels of technical efficiency. Those who inherited the business or started it because of family tradition initially ran more efficient operations. These owners may have benefited from better knowledge and contacts. Over time, however, those who started their businesses to increased their income or, because they could not find a job, became more efficient. We argue that these owners benefited from greater motivation to be successful.
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Bibliographic InfoArticle provided by College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan in its journal International Journal of Business and Economics.
Volume (Year): 12 (2013)
Issue (Month): 1 (June)
microenterprises; technical efficiency; ENAMIN; Mexico;
Find related papers by JEL classification:
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
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