Impacts of Microfinance Strategic Management and Social Capital on Women Entrepreneurship in Rural Mexico

Impacts of Microfinance Strategic Management and Social Capital on Women Entrepreneurship in Rural Mexico

José G. Vargas-Hernández (Universidad de Guadalajara, Mexico) and Claudia Leticia Preciado Ortiz (Universidad de Guadalajara, Mexico)
DOI: 10.4018/978-1-5225-5213-0.ch010
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This chapter analyzes two types of women entrepreneurship in rural México. The first type seeks to determine the successes and failures undertaken by women at a rural business financed by a state program and the second type seeks to reflect the importance of social capital in the establishment and growth of cooperatives in Mexico, specifically the cooperative Las Chiquihuitecas, producer of cochineal insect (Dactylopius coccus Costa). The research method used in both cases was totally qualitative applying the documentary analysis and the interview in depth as an instrument for the collection of the information. It is obtained that social capital has been the key element in the formation and development of women businesses. The study concludes that the practical knowledge of the entrepreneurs and the lack of social capital in these cases are not sufficient to direct the businesses to success, and that the lack of structured knowledge and adequate scientific support for this project strongly directed towards the non-permanence on the market.
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History Of Cooperatives

In 1820 cooperativism was born in England as an economic system, when workers sought to overcome their social conditions. The Cooperative of Rochdale is mentioned by several authors as the first exercise of cooperatives in the world, formed by 28 workers in 1944. The weavers faced miserable working conditions and low wages, and could not afford the high prices of food and household items. They decided that joining their scarce resources and working together could access basic goods at a lower price.

Initially, there were only four items for sale: Flour, oatmeal, sugar and butter. Each client BECAME a member and grew (International Co-operative Alliance ICA, 2017a). Subsequently, in 1985, the International Co-operative Alliance (ICA) was founded, establishing the principles and values ​​on which the functioning and development of cooperatives would be based (Center for Social Studies and Of Public Opinion CESOP, 2016). The ICA is an independent non-governmental organization that is established to “unite, represent and serve cooperatives around the world”; serving as a voice and global forum for knowledge, experience and coordinated action for and about cooperatives (International Co-operative Alliance ICA, 2017b).

The ICA defines cooperative as “an autonomous association of persons voluntarily united to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.” The values ​​it defined as the basis of any cooperative are: self-help, self-responsibility, democracy, equality, equity, solidarity, honesty, openness, social responsibility and caring for others. And the principles are voluntary and open membership, democratic control of members, economic participation of members, education, training and information; Cooperation among cooperatives and concern for the community (ICA, 2017b).

Today it is estimated that the sector has about 1 billion members. Cooperatives employ, directly or indirectly, 250 million people worldwide. The world's first 300 cooperatives alone have an estimated global turnover of $ 2.53 trillion, as revealed by the International Co-operative Alliance ICA, 2017b.

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