Academic journal article International Review of Management and Business Research

Resource and Knowledge Transference through Networks, Significant Assets for Rural Mexican Microenterprises

Academic journal article International Review of Management and Business Research

Resource and Knowledge Transference through Networks, Significant Assets for Rural Mexican Microenterprises

Article excerpt

Introduction

The outcome presented in this article is part of the project entitled "The Role of Social Networks in the Development of Rural Microenterprises in Mexico" within the framework of the "Program of Support for Research in Technological Innovation" (PAPIIT), of the UNAM, whose purpose is to study the advancement in understanding the role and potentialities that social networks have in the growth of rural enterprises and the way they contribute to rural development .

To achieve such an end various companies that participated in RENDRUS (National Network for Sustainable Rural Development) were chosen. This organism forms part of SAGARPA (Secretary of Agriculture, Livestock, Rural Development, Fisheries and Food) and its aim is to organize the interactions between the rural entrepreneurs who have succeeded in the management and development of their company. In fact for RENDRUS, experience is a fundamental element in the formation of successful entrepreneurs. However, the accumulation of experience is obviously a very slow process and modifications to the environment result in that knowledge becoming obsolete quickly; so the exchange of experiences with other rural entrepreneurs is an enormous opportunity to acquire existing proven experience in a very efficient way (SAGARPA, 2014).

In this sense the workshops organized by RENDURS become an instrument through which rural entrepreneurs are able to systematically learn from the successes and mistakes of other businessmen, and, above all, to reflect on their own experience and to identify the need for improvement (Red Nacional de Desarrollo Rural Sustentable, 2016 - 2012). And in order to present results the article is made up of several parts: introducing a review of literature, followed by the justification, problem, and objectives, methodology used to gather information, results and conclusions.

Literature Review

In this postmodern age there are different strategies used to approach the creation, development and ways in which small businesses can survive. One of the options that entrepreneurs have is to gather together in the face of adverse conditions; this state is conceived as an emergence (Foucault, 1979). At present what has been found in applied research is that the structure formed by the interactions of owners and their families are networks through which entrepreneurs have had more opportunities to gain resources from government organizations and access to diverse channels of commerce and economic development (Arras Vota, López Díaz &Hernández Rodríguez, 2012) This fact is recognized by institutions a nd they are finding ways in which they can support the efforts of those persons who are trying to overcome obstacles in order to make their businesses long-lasting.

In Mexico economic censuses reveal, among other things, that small businesses dominate the economy. They represent 95.4% of the total on a national basis. Also, 42.7% of them have a lifespan of no more than 5 years (INEGI, 2014). This reveals the fact that in Mexico a large percentage of micro enterprises that are constituted every year tend to disappear (Baez Reyes, Cordero Lara, Hernández Flores, Sánchez Sánchez, & Carrillo Rendón, 2009). Therefore it is important to analyze the strategies they must follow in order to prevail.

Most of these small businesses have their roots in rural micro-enterprises, which are units of production of goods and services, where the businessman and his family participate directly, to give added value to their products, through agro-industrial processes of transformation of primary production, with the goal of taking their products to the modern market (Parra, 2000). This involves the processing and marketing of these products, which represent an alternative for the development of the sector.

So people, in the search of options to transform primary sector products and obtain better income, opt for the creation of a business because they have capital: knowledge of a productive process that allows them to generate an economic strategy and a working alternative for their family and other individuals who are par t of the community. …

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