Models of Competition in the Microenterprise Sector
Keywords:
microenterprises, competition, monopolistic, market powerAbstract
The present essay consists of a theoretical revision of the insertion of the microenterprises to the models of competition. It is based on the idea that the microenterprise sector, although it cannot generate large movements of factors of production, has developed a variety of strategies in order to attract the attention of consumers, generating in it a sufficient market impact to include them in imperfect competition models. Another aspect considered is that the competitiveness of microenterprises in Mexico is affected by their internal organizational structure, which makes it difficult to conceptualize competition in this sector. In order to analyze the competitiveness of the microenterprise, it is included in a perfectly competitive market, mainly because of its inability to direct the market and simply be a price-taker. In addition to sharing, most of the characteristics place it within the competitive framework mentioned. Additionally, if we take into account that the product in this type of factory is produced in a personal and traditional way, it is feasible to assume that the finished product will depend on the process where each microenterprise exists, which may not necessarily be the same which is sufficient motive to remove it from the model of perfect competition (Chamberlin, 1933). Taking the characteristics of the monopolistic competition model, it is assumed that it allows identifying itself with microenterprise characteristics, mainly in the assumption that there are differences in the product, and even allows the possibility of operations outside the price to differentiate it. It is concluded that due to its dimensionality, as well as its own size characteristics, it is within the imperfect competition where the microenterprises should be located. In a deeper analysis it was found that most of these units would be located within the model of monopolistic competition giving him the possibility of exerting influence within the market where it is established.
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