Survival probabilities of low value added microenterprises

Michelle Texis Flores (), Martín Ramírez Urquidy and José Gabriel Aguilar Barceló
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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

Contaduría y Administración, 2016, vol. 61, issue 3, 551–567

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.

Keywords: Microenterprise; Low value added microenterprise; Entrepreneurial; Entrepreneurship by necessity; Survival (search for similar items in EconPapers)
JEL-codes: L26 M19 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:nax:conyad:v:61:y:2016:i:3:p:551-567

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