Micro, Small and Medium-Sized Businesses in Jalisco : Their Evolution, and Strategic Challenges

The business structure in Jalisco, Mexico is primarily composed of micro, small and medium-sized enterprises (SMEs). Thus, it is fundamentally necessary to understand the dynamics, evolution and above all, the strategic challenges of this sector in order to understand the state's economic performance and the possibilities for future development in Jalisco. As a result, this study analyzes the evolution of the SMEs (known as PyME, in Spanish) in Mexico and Jalisco by using data from the Economic Censuses of 1999, 2004 and 2009 as well as sources such as the Mexican System of Business Information (Sistema de Información Empresarial Mexicano, or SIEM, in Spanish). This analysis includes the distribution of companies by sectors and size. It also makes a comparison between the observed trends at both national and state levels, allowing the identification of significant differences in productivity and the challenges that these small and medium-sized companies face as they seek to modernize and consolidate. We also propose a strategy to boost the performance of SMEs. The following variables are included in this analysis: The number of establishments; Gross fixed capital formation; Gross total production; Gross value added census; Personnel employed; Salary levels; and Hours worked