Title: The impact of financial bootstrapping techniques on perceived performance: an empirical analysis of Costa Rican SMEs

Authors: Yuqi Li; Marco Alvarado

Addresses: School of Architecture, Tianjin University, Weijin Road 92, Tianjin, 3000072, China; Polytechnic University of Catalonia (UPC Barcelona Tech), Barcelona, Spain ' Universidad Politécnica International, Campus Heredia, San Pablo Heredia, Costa Rica

Abstract: In this study we evaluate how different financial bootstrapping techniques - that we link to the access to financial resources, the relationship with customers and suppliers, and cooperation with other businesses - impact perceived performance among Costa Rican small businesses. The results of the regression analysis on a sample of 120 Costa Rican SMEs for 2017 show that bootstrapping techniques related to customers and suppliers have a significant positive impact on perceived performance, while bootstrapping practices linked to access to finance are negatively correlated to perceived performance levels. The findings also show that labour market experience and business size are positively correlated to perceived performance. This study offers insights on the relevance of including cash-flow managerial practices (i.e., financial bootstrapping techniques) in the performance evaluation of SMEs in developing settings.

Keywords: financial bootstrapping techniques; perceived performance; Costa Rica.

DOI: 10.1504/IJBE.2021.115086

International Journal of Business Environment, 2021 Vol.12 No.2, pp.130 - 148

Received: 12 May 2020
Accepted: 28 Jun 2020
Published online: 18 May 2021 *

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