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Survival probabilities of low value added microenterprises

Author

Listed:
  • Michelle Texis Flores

    (Universidad Autónoma de Baja California, México)

  • Martín Ramírez Urquidy

    (Universidad Autónoma de Baja California, México)

  • José Gabriel Aguilar Barceló

    (Universidad Autónoma de Baja California, México)

Abstract

This paper analyzes the possibility of survival of low value added microenterprises of Baja California. Using a logit probability model, it was explored various scenarios associated with the possibility that microenterprises exceed the first three years of activity in the market. This is because the theory of entrepreneurship highlight that during those early years, firms are more likely to disappear. The results indicate that microenterprises are more likely to persist in activity when microentrepreneurs have levels of basic education, are married and the microenterprise generates 50% or more of household income. Highlight the effect of schooling level of microentrepreneurs in the possibility of survival of the enterprises, microentrepreneurs who have the highest education level are those with the least probability of lasting in the business. The low value added microenterprises also are related to entrepreneurship by necessity. So, the findings highlight the importance of strengthening microenter rises originated in adverse contexts.

Suggested Citation

  • Michelle Texis Flores & Martín Ramírez Urquidy & José Gabriel Aguilar Barceló, 2016. "Survival probabilities of low value added microenterprises," Contaduría y Administración, Accounting and Management, vol. 61(3), pages 551-567, Julio-Sep.
    • Handle: RePEc:nax:conyad:v:61:y:2016:i:3:p:551-567
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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