Regulatory, Cognitive and Normative Factors Affecting Small Business Development in Northern Mexico‪.‬

ABSTRACT Recent reforms in Mexico are beginning to have a positive impact on economic development, investment activity, and international trade. The Mexican small business community, however, has failed to reap the benefits of these economic reforms. After reviewing the scant literature in this area, we employed the Country Institutional Profile (CIP) instrument to explore problem areas for small business development in the northern Mexico state of Chihuahua. We compare the Mexico results with the previously reported CIP of the U.S. and conclude that northern Mexico is lacking on all three dimensions evaluated by the CIP--regulatory, cognitive, and normative. We conclude that reform policy has been ineffective as it pertains to small business development.