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Success Of The Handicraft Subsistence Business And Its Relationship With Business Perfomance, El Exito De Los Negocios De Subsistencia De Artesania Y Su Relacion Con El Desempeno

Author

Listed:
  • Arcelia Toledo-Lopez
  • Luis Mendoza-Ramirez
  • Patricia Soledad Sánchez-Medina

Abstract

This paper analyzes how subsistence entrepreneur’s success is related to financial and non-financial business performance in handicraft business. The approach of five typology’s success in subsistence businesses were identified in the context of subsistence businesses. These include local markets, income for subsistence, lack of access to basic resources and government support and informal network. Based on this background we propose hypothesis (1) the definition of success is determined by financial performance (2) the definition of success is related to the entrepreneur’s goals and motives to start his/her business. To test the hypothesis, an exploratory and cross-sectional study were used. Seventy-six subsistence handicraft businesses were interviewed in Oaxaca, Mexico. We found the definition of business success is determined by customer-oriented goals and entrepreneurial motivation to self-realization and to transmit a cultural identity, as well as non-financial business performance. But, we did not find a significant relationship with financial performance.

Suggested Citation

  • Arcelia Toledo-Lopez & Luis Mendoza-Ramirez & Patricia Soledad Sánchez-Medina, 2016. "Success Of The Handicraft Subsistence Business And Its Relationship With Business Perfomance, El Exito De Los Negocios De Subsistencia De Artesania Y Su Relacion Con El Desempeno," Revista Internacional Administracion & Finanzas, The Institute for Business and Finance Research, vol. 9(1), pages 57-68.
    • Handle: RePEc:ibf:riafin:v:9:y:2016:i:1:p:57-68
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    References listed on IDEAS

    as
    1. Robert Fairlie & Alicia Robb, 2009. "Gender differences in business performance: evidence from the Characteristics of Business Owners survey," Small Business Economics, Springer, vol. 33(4), pages 375-395, December.
    2. Toledo, Arcelia & Hernández, José de la Paz & Griffin, Denis, 2010. "Incentives and the growth of Oaxacan subsistence businesses," Journal of Business Research, Elsevier, vol. 63(6), pages 630-638, June.
    3. Crawford-Mathis, Krista & Darr, Stephen & Farmer, Amy, 2010. "The Village Network(TM): Partnership and collaboration to alleviate poverty in subsistence marketplaces," Journal of Business Research, Elsevier, vol. 63(6), pages 639-642, June.
    4. Mayer-Haug, Katrin & Read, Stuart & Brinckmann, Jan & Dew, Nicholas & Grichnik, Dietmar, 2013. "Entrepreneurial talent and venture performance: A meta-analytic investigation of SMEs," Research Policy, Elsevier, vol. 42(6), pages 1251-1273.
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    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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