The Impact of Financial Decisions and Strategy on Small Business Competitiveness

Global Journal of Business Research, Vol. 6, No. 2, pp. 93-103, 2012

11 Pages Posted: 6 Jan 2012

See all articles by Alejandra López Salazar

Alejandra López Salazar

Universidad de Guanajuato

Ricardo Contreras Soto

Universidad de Guanajuato

Rafael Espinosa Mosqueda

Universidad de Guanajuato

Date Written: 2011

Abstract

This paper examines the financial decisions made by companies, the strategies that organizations follow, the alignment between these two variables, and the relationship of financial decisions to the level of competitiveness. Two hundred two businesses’ testimonies in the region of Celaya were analyzed. The results show that most micro and small enterprises make funding decisions in a certain way, apply an intensive strategy, also that their market longevity is low and their level of sales is regular, implying that Mexican companies lack competitiveness, which hampers their development and expansion. The emphasis that companies place on certain financial decisions is not always appropriate for the type of business strategy being implemented. Likewise, companies that efficiently manage their short-term assets and liabilities are more competitive, as evaluated by their longevity on the market.

Keywords: small business, competitiveness, strategy, financial decisions

JEL Classification: M10, G30

Suggested Citation

López Salazar, Alejandra and Contreras Soto, Ricardo and Espinosa Mosqueda, Rafael, The Impact of Financial Decisions and Strategy on Small Business Competitiveness (2011). Global Journal of Business Research, Vol. 6, No. 2, pp. 93-103, 2012, Available at SSRN: https://ssrn.com/abstract=1945906

Alejandra López Salazar (Contact Author)

Universidad de Guanajuato ( email )

Guanajuato
Mexico

Ricardo Contreras Soto

Universidad de Guanajuato ( email )

Guanajuato
Mexico

Rafael Espinosa Mosqueda

Universidad de Guanajuato ( email )

Guanajuato
Mexico

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