DETERMINANTS OF PERFORMANCE IN MICRO-ENTERPRISES: PRELIMINARY EVIDENCE FROM ARGENTINA

Journal of Small Business Management

Wiley-Blackwell

Año: 2013

1540-627X

his paper proposes a theoretical multi-level framework that studies the determinants of micro-enterprises? performance. Using a unique data set of nearly 300 micro-enterprises located in Argentina, we find that human capital (proxied by educational level and degree of dedication), innovation and intensity of use of own capital are important determinants of the micro-enterprise?s performance. Moreover, we found that public policies give support primarily to micro-enterprises arising from unemployment. Additionally, these firms were found to be relatively less successful in terms of their performance, suggesting a pro-poor bias. Finally, we provide a taxonomy of micro-enterprises which distinguishes four different micro-entrepreneurial profiles.