Nature of the expectation of formalization of marginal micro businesses in Mexico
- J. G. Aguilar-Barcel, M. Texis-Flores and N. Ramrez-Angulo (2011). Innovar, 63-75
- Abstract: With information from 3565 promoters of marginal and informal micro businesses that have been supported by the Centro de Investigacin, Asistencia y Docencia para la Micro y Pequea Empresa (Center for Research, assistance and teaching for micro and small Business) (in mexico), an analysis is made of the motivations and perspectives associated with entrepreneurship. the objective is to determine whether they would be able to formalize their businesses. it was found that the desire to be financed, having the current goal to expand their businesses, to realize market potential or to aim to be their own bosses, considerably favors such formalization. Clearly, not aiming to be financed and having a strategy of survival as the sole business objective does not favor formalization. Perceived competition has not been found to be relevant in encouraging or discouraging formalization. strengthening human capital skills as a way of improving business training is possibly the element that most directly can be included in public policies and one of the ones that has a greater effect on formalization.
- Theme: Perceptions and attitudes, Social aspects/Disadvantage/Poverty
- Keywords: Analysis of correspondences, Business perspectives, Formalization, Informal micro-entrepreneurship
- Reference type: Journal Article
- Geographic location: Mexico, Central America, Global South