Academic journal article International Journal of Management and Marketing Research

The Profile of Small Business Owners: Evidence from Mexico

Academic journal article International Journal of Management and Marketing Research

The Profile of Small Business Owners: Evidence from Mexico

Article excerpt

ABSTRACT

The importance of small businesses in the economic and social development of a country is recognized in political and academic circles. In this context, one factor associated with the success of these businesses is the owners characteristics. The purpose of this study is to present a profile of attitudes and entrepreneurial behavior, knowledge, and socio demographic characteristics of small business owners in the city of Villahermosa, Tabasco, Mexico. The study also examines the influence of socio demographic variables on the attitudes of the business owners. The design of the study is non-experimental, transversal and descriptive. The data were analyzed by means of descriptive statistics and an analysis of variance. The results generated a profile in which the capacity to negotiate, creativity and leadership are outstanding characteristics. A low propensity to taking risks is also reported. It is clear that entrepreneurs have knowledge in the administration and finances related to their businesses. They are mainly male, married adults, with bachelor degrees, a family background in business, and experience in their line of business. Statistically significant differences were recorded between age and leadership, propensity to take risks and self-confidence.

JEL: L26

KEY WORDS: Businessman, Small business, Attitudes and knowledge.

INTRODUCTION

The establishment and permanence of small businesses are desirable as they generate jobs and represent a positive contribution to the economic development of a country and to gross domestic product (Torres 2009; Gómez 2004; Ayyagari, Thorsten, and Demirguc-Kunt 2007). Two types of factors are associated with the establishment and duration of these businesses: those derived from opportunities provided by the economic, legal, social and political structure of the area, and those related to psychological features and the socio demographic characteristics of the business owners (Smith-hunter, Knapp, and Yonkers 2003; Martín, Hernandezgómez, and Rodriguez 2005; Benzing, Chu, and Kara 2009). The second factor analyzed in this study considers a business owner to be an entrepreneur after having decided to accept the risk of creating or maintaining a business.

Psychological features include the attitudes and behavior of the businessman. One of the most complete and recognized approximations is that of Timmons (cited in Garcia, Garza, and Sepulveda 2002), who considered leadership, the need to accomplish, the obsession for opportunity, a tolerance for risk, creativity, self confidence, compromise and determination as dominant factors of the entrepreneur profile. Several authors have stated that these attitudes and behaviors may be encouraged and developed (Timmons cited in Filion 2002; Hinojosa 2003; Filion 2002). Empirical studies are pertinent to identify characteristics of entrepreneurs that have successfully maintained their businesses. The findings will be of interest to entrepreneurs that wish to identify characteristics to be developed that will make their businesses successful. Professors will also find the results beneficial as they face the challenge of devoping entrepreneurs. Aspects associated with small business owners will be confirmed or rejected (De la Rosa 2000). The purpose of this project was to develop a profile of entrepreneurial attitudes and behaviors, knowledge and socio demographic characteristics of small business owners in the city of Villahermosa, Tabasco, Mexico.

This paper is organized into four main sections. The first section reviews the concept of "entrepreneur" from the following disciplinary perspectives: economics, psychology, sociology, administration and marketing. In the second section, the methodology is outlined; the research design. The study variables, the population, data collection instruments, and data analysis procedures are explained. Next, the analysis results are presented. Finally, the key findings of the study, study limitations and future research directions are discussed. …

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