Success factors of the handcraft business in Mexico

The purpose of this article is to identify a number of factors to succeed in the Mexican handcraft industry based on the use of business skills to acquire and coordinate resources and abilities. In the literature there are a plethora of proposed success factors for consolidated companies. While the expectations of handcraft business owners rely on the consumer's preferences, there is a wide range of variability in the formal nature and flexible structure of their organizations, thus making it difficult to implement these factors. The data used in this study stemmed from a well-structured interview to 337 handcraft business owners in the 8 following different Mexican states: Guanajuato, Jalisco, Michoacan, Mexico, Guerrero, Oaxaca, Puebla and Veracruz. In order to determine the success factors, a multiple linear regression analysis was conducted. As a result, the 9 following success factors were established: administrative innovation, financing impact, production technology, administration technology, process management ability, packaging, differentiation, and information. The author proposes a set of equations to be used for managing the success of a business when it is measured in terms of satisfaction with the business or based on sales revenue, business growth, or business size.