Abstract

AGUILAR BARCELO, José G.  and  ORRACA ROMANO, Pedro P.. The expansion of informal microenterprises: Is it a matter of performance or determination?. Contad. Adm [online]. 2021, vol.66, n.3, 00014.  Epub Feb 07, 2022. ISSN 0186-1042.  https://doi.org/10.22201/fca.24488410e.2021.2765.

The results on the relationship between the management of informal entrepreneurship and their possibilities of expansion are still scarce. Based on ENIGH data and through logistic regressions, we explore the characteristics associated with the growth of these enterprises in Mexico. It is shown that establishing the first location or evolving into a second one are structurally different problems, which are not always linked to economic-financial indicators. Although vital to meet their objectives, profits do not seem to be the main trigger for growth in this sector. This could be due to the lack of orientation towards intertemporal profit maximization and the restriction imposed by a growth process on the level of short-term profits. Therefore, in addition to conventional economic-financial indicators other characteristics associated with the entrepreneur and the nature of his project must be considered to understand its growth potential.

Keywords : Microenterprise; Informality; Performance; Growth; Expansion.

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