Abstract

OSORIO NOVELA, Germán; GONZALEZ ARZABAL, Nidia  and  MUNGARAY LAGARDA, Alejandro. Financial Resilience on MSME owners in Mexico. A study in the context of economic crisis. Anál. econ. [online]. 2024, vol.39, n.100, pp.165-181.  Epub Apr 23, 2024. ISSN 2448-6655.  https://doi.org/10.24275/uam/azc/dcsh/ae/2024v39n100/osorio.

Financial resilience is a faculty that improves the capabilities of companies to identify financial problems, resist them, confront them and recover quickly in the face of an economic crisis, such as that generated by COVID-19. The objective of this article is to determine the effects of financial resilience on the economic well-being of MSMEs in Baja California, Mexico. An economic well-being index is estimated based on the OECD/INFE (2020) methodology and an econometric model with information from 465 entrepreneurs to prove that financial resilience attenuated economic shocks in MSMEs during the recent period of economic crisis. The results suggest that, although the economic deficit negatively affected the economic well-being of the MSME, the majority of entrepreneurs preferred to be prudent, supporting deficits and avoiding new financial instruments. It was evident that MSME entrepreneurs sought to restore and improve their economic well-being through financial prudence.

Keywords : Financial resilience; Financial inclusion; Economic well-being; Economic crisis; MSME’s.