How the Quality of Human Resources Affects Micro and Small Enterprise Closures

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Abstract

This article aims to identify the effect of focusing on human resource quality in micro and small enterprise [MSE] closures in Mexico. It also aims to compare micro and small enterprises that closed with those still open. As part of a review of literature, we found that inadequate personal management and poor recruitment practices are two of the ten most frequent reasons why small organizations close which, among other reasons that are stated in the theoretical framework, support our study. The research was drawn up under the nature of a quantitative approach, with 34,980 cases of which 8,730 were closed enterprises and 26,250 were operating in countries such as Mexico and Colombia. Two hypotheses were considered and both were checked. The first detected that human resources in the study sample did not trigger the closure of micro and small enterprises. The second, found that there are statistically significant differences in human resources practices between enterprises that continue operating and feel that they are safe to those that closed and to those that are in risk of doing so.