Business Management Praxis, Innovation, and Entrepreneurship as a Predictor of Labor Productivity in MSEs

Abstract

The connection between effective business management, innovation, and entrepreneurial spirit is presented as a key predictor of labor productivity in Micro and Small Enterprises (MSEs). Efficiency in business management, combined with innovative practices and the promotion of entrepreneurship, directly influences the labor productivity of MSEs. Efficient management involves the practical application of strategies that optimize resources, while an innovative culture allows agile adaptability to market dynamics. Entrepreneurship, as a driver, encourages the constant search for opportunities and creative solutions. The research analyzes how these three dimensions are predictors of labor productivity in MSEs, using a bibliographic review to establish inferences that support these relationships and provide clear and concise evidence to identify the concepts and definitions relevant to the research. A descriptive, explanatory, and quantitative study with a sample of 913 business people reveals a strong positive relationship between these variables (r = 0.80, r = 0.82, r = 0.80 and R2 = 0.831). Thus, labor productivity is positioned as a direct result of the synergy between skillful management, the promotion of innovation, and the infusion of an entrepreneurial spirit into companies' organizational culture. 

Received: 23 August 2024 / Accepted: 16 February 2025 / Published: 06 March 2025