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

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.