THE IMPACT OF FINANCIAL DECISIONS AND TRATEGY ON SMALL BUSINESS COMPETITIVENESS

Alejandra López Salazar, Ricardo Contreras Soto and Rafael Espinosa Mosqueda

Global Journal of Business Research, 2012, vol. 6, issue 2, 93-103

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.

Keywords: Small business; competitiveness; strategy; financial decisions (search for similar items in EconPapers)
JEL-codes: G30 M10 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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