Analysis of small and medium enterprises in Mexico.

Business competitiveness has long been a subject of study and debate in the economic literature, which has pointed to various drivers of business development. Drawing on the Industrial Economics, the New Industrial Economics, and theory of Resources and Capabilities approaches, this paper sets forth a panel data econometric model with 2,671 Mexican micro-enterprises over four time periods, detailing the relationship between the competitive advantages of micro-enterprises and external and internal factors, such as the sectoral structure and the tangible and intangible assets of the economic unit. The principal results obtained suggest that the synergies needed for the development of the small-scale productive sector are primarily generated by way of intangible capabilities. [ABSTRACT FROM AUTHOR]