The challenge of SMEs in the service sector in Piedras Negras Coahuila

The main hypothesis in this paper was that the profitability of companies is related to aspects of business management organization and human resources and innovation and technological development. The results indicate that the factors that are most related to the profitability of local small and medium enterprises in the service sector are the size of the enterprise the manager''s academic background the competitive strategy (in particular partnerships) and the differentiation of the production and marketing departments.As for the factors that respondents considered as determining the development and success of the company they were: price access to new markets including consumers on the US side flexibility of the production/commercial process and research and development effort.