Inter-business association and its effect on local economic development

Abstract

The micro, small and medium-sized enterprises (MSMEs) are exposed to a several situations external to their main activities, for that reason MSMEs are forced to develop new strategies that allow them to continue in the business, even in the adversity. In addition, the business association has become a relevant issue in the public and private agenda, because this is a way for the MSMEs to increase their competitiveness and achieve specific objectives, which if done individually it would be a slower process and with less impact for the local economic development. With this background, the objective of this research is to determinate if in Tepic City, Nayarit, the inter-business associations serve or can serve as a strategy for boost the economic development of the area. A semi-structured interview was conducted with two established inter-business associations: Association of Automobile Distributors of Nayarit, and Tepic Hotels and Motels Association. The main result is that the currently established business associations have as main motivation to have power of decision in the sector, moreover to have representation in front of government policies, without forgetting the join structure which has allowed them to improve their quality and training.