Theoretical Model of Rural Entrepreneurship and Its Influence on the Competitiveness of MSMEs

Abstract

This study proposes a theoretical model of rural entrepreneurship that is analyzed through the national model for competitive MSMEs presented by the Instituto para el Fomento a la Calidad Total [IFCT] (2010). The objective is to determine if strategic planning contributes to the entrepreneurship of rural companies, as well as to measure the degree of influence that entrepreneurship has on the activities of strategic alliances, relationships with their clients and human resources. The method used was quantitative, non-experimental, cross-sectional. The study subject was the MSMEs from the rural environment of the Mexicali Valley, Baja California, Mexico. For the statistical analysis, the second generation multivariate method called partial least squares structural equation modeling (PLS-SEM) was applied. The structural model presented as a result that the dependent variable Entrepreneurship is influenced by the independent variable Strategic Planning, that is, the actions of market strategies, infrastructure, innovation of new products and markets, as well as business image, do influence the process of entrepreneurship, particularly in the succession plan, company-family communication and the integration of workers-family. Similarly, when family businesses in rural areas develop their entrepreneurship, this exerts influence on the generation of strategic alliances, relationships with their clients and their integration of human resources.