An ex‐post comparative analysis of SME formation in Brazil and Mexico

Jorge Miguel Carrillo

27 citations0/0 files storedInternational Journal of Emerging Markets

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Entrepreneurship Studies and Influences Economic and Industrial Development Firm Innovation and Growth

Abstract

Purpose This study seeks to compare and contrast the contexts and processes of the formation and development of small and medium enterprises (SMEs) in Brazil and Mexico. Additionally, a research agenda is defined based on information generated by various sources regarding the initial stages of enterprise formation. Design/methodology/approach This research paper uses data collected from a 2002 study conducted by the Inter‐American Development Bank, along with institutional reports and academic literature, in order to perform a comparative analysis on the gestation and early development of SMEs in Brazil and Mexico. Findings This analysis of prior research studies indicates that emerging economies like Brazil and Mexico face enormous social and economic challenges that have in turn slowed down the efficiency and effectiveness of SME support programs. In addition, the differences found in the institutional, socio‐cultural, and economic context of Brazil and Mexico reveal that governments and entrepreneurs face the challenge of sustaining the existence of SMEs. Research limitations/implications Since, there was no access to raw data and no statistical procedures could be conducted, the significance of the differences between SMEs in Brazil and Mexico discussed in this paper is perceptual. Future research resulting from this paper shall develop theories that would help to create effective SME support programs, identify how particularities in every country affect SME formation, development, and survival, and explore issues faced in the growth, maturity, and mortality stages of SMEs. Originality/value SMEs are extremely important to the economies of both Brazil and Mexico. However, an understanding of the micro and macro issues faced by these countries is very limited. This research paper identifies and analyzes such issues in order to specifically make way for future empirical research.

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References

1991Firm Resources and Sustained Competitive Advantage 2004Firm resources and sustained competitive advantage 2003The Theory of Economic Development 1983Culture's Consequences: International Differences in Work-Related Values.1961The achieving society.1988“Who Is an Entrepreneur?” Is the Wrong Question 2002Global Entrepreneurship Monitor 1980Risk Taking Propensity of Entrepreneurs.

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