Albor Medina, Karen Paola

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e-Delphi prioritization of capital structure determinants in small and medium size businesses in Puerto Rico
(2023-12-04) Albor Medina, Karen Paola; Méndez Piñero, Mayra I.; College of Engineering; Santiago Rosado, David; González Barreto, David; Department of Industrial Engineering; Lorenzo González, Edgardo
In 2020, Puerto Rican Small-to-Medium Enterprises (SMEs) defined by the incentives code as businesses with average sales under three million dollars, comprised 80.8% of all enterprises and contributed significantly to 38.6% of formal employment. A critical management objective for these SMEs is determining their Capital Structure (CS), which defines how they leverage their regular operations. It is recognized that one of the primary reasons for SMEs failures lies in their financial leverage decisions and the challenge of aligning their CS with their existing capabilities and business structure. Consequently, this study employs a qualitative e-Delphi method to identify crucial CS variables for Puerto Rican SMEs, and a validation methodology for statistical confirmation on Micro SMEs. The research yields the Product Competitiveness, Solvency, Profitability, Tangibility of Assets, Liquidity, and Firm Growth as the focus-variable list that can assist academic SMEs researchers and financial decision-makers in optimizing their resources and efforts.