Relationship between Small Business Line of Business and Survival: A Longitudinal Study in Cancun Mexico
Micro-sized Enterprise is the most common path for undertaking a business in Mexico and a fundamental part of the economic structure of the country. Previous studies reported high mortality rates in this kind of business. The purpose of this paper is to analyze the survival behavior of Micro-Enterprises categorized by kind of business in Region 101, a particular area in Cancun, MA©xico. The paper is the result of a longitudinal study that contemplates 4 years of observation of the business units located in a region constituted by 95 blocks. One finding is that corporate spin is related to business survival. High rates of business survival in beer stores and healthcare businesses (pharmacies, doctors' offices) were found. On the other hand, lower rates of business survival were found in three industries, automotive service, internet and entertainment sub-sector.