SME business performance: an analysis of economic activities by sectors and subsectors in Guanajuato, Mexico

Abstract

This article identifies the factors that influence business performance (BP) in the construction, trade, and services sectors, as well as sub-sectors and branches of the manufacturing sector of small and mid-size enterprises (SME) in the state of Guanajuato, Mexico. A quantitative, descriptive, and correlational statistical analysis was performed on a sample of 460 enterprises, estimating a linear regression model using the ordinary least squares (OLS) method. Empirical evidence reveals that the construction, trade, and services sectors agree that profitability, efficient internal processes, and low labor absenteeism are those factors that mostly influence BP. On the other hand, in sub-sectors of low-technology manufacturing (minerals, metals, plastic and rubber; textile; and leather and substitute materials), the quality of product is the factor viewed as the most relevant to explain BP in Mexican SME.