Microfinance and Rural Entrepreneurship in Mexico: A Budget Study for PROMUSAG

Microfinance and Rural Entrepreneurship in Mexico: A Budget Study for PROMUSAG

José G. Vargas-Hernández (University of Guadalajara, Mexico) and Kinkini Bhattacharjee (Katwa College, India)
DOI: 10.4018/978-1-5225-5213-0.ch006
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One of the popular policies for rural entrepreneurships in Mexico is the Program for Women in the Agricultural Sector, or PROMUSAG, whose objective is to contribute to the generation of employment and income of women entrepreneurs with 18 years or more living in agrarian centers by funding and training for implementation of productive projects. The aim of the chapter is to analyze the case of a joint venture stage to determine the successes and failures to undertake this business based on the theory of resources and skills of entrepreneurship and business in general and budget study of PROMUSAG in particular. The analysis concludes that the empirical knowledge of entrepreneurs in this case were not sufficient to direct the business to success, and structured knowledge strongly directed towards the non-permanence on the market is still lacking to serve the targeted population. However, based on CONEVAL Report, we can say something about the increase in women empowerment as far as the budget program is concerned.
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Literature Review

The essences of a few studies related to this area are needed to be mentioned here to carry out our study. The enterprise is the basic and elemental production system of an economy, is an indivisible economic unit that is generated in the process of value creation that is the essence, purpose and function of the entire economic system (Alegre, Berne, and Galve, 1995). Strategic management is the scientific discipline that studies issues related to management of organizations and how are managed the functional areas of the firm. Just as the way the company has designed herself, to set their goals and values, and to relate to their environment. According to Rumelt (1997), the purpose of the strategy is to provide partial support for the company to survive and be successful. Strategic management analyzes and determines the behavior of the target company specifically focuses on the determinants of competitive advantage and how it can be used to generate profits. In any organization or company, it is essential to have certain resources and capabilities that are the basis for the generation of competitive advantages, which are crucial to the achievement of the objectives of the firm, that is, to generate sales and more importantly, getting benefits.

The theory of resources and capabilities focuses on the analysis of assets owned and / or controlled by companies, as well as their differences, and the importance of this fact to explain the evolution of the results (Barney, 1991). From this approach, the company is considered as a unique set of resources and capabilities with a unique story (Castro and Lopez, 2006). In this perspective the strategy is defined as a constant search and maintenance benefits, which shows the economic approach model (Reynoso, 2005). Achieving success in business depends on the performance of the tasks of management and internal coordination and the efficiency with which the company competes. The theory of resources and capabilities and the structural theory explain the existence of extraordinary benefits of this success, although the empirical analysis shows that the first explains even better.

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