Business growth and its relationship with the profitability of a commercial MSE in Arequipa, Peru

Abstract

Business growth is crucial for the long-term sustainability of a company. Such growth enables the acquisition of new customers as well as significant financing. In turn, it generates favorable profits for the company and contributes to the organization's prosperity and development. Therefore, the objective was aimed at determining the business growth in relation to the profitability of a commercial MSE in Arequipa, during the period 2018-2022. The research was structured as a quantitative, basic, descriptive, non-experimental, correlational, and cross-sectional study. Thus, the relationship is evidenced by the Pearson's statistic through business development and economic profitability, under a 0.02 error. This achieved a high correlation of 0.845, indicating that if business development increases exponentially or is high, economic profitability also increases directly. Meanwhile, the internal factor shows a medium correlation of 0.596, with an error level of 0.040 regarding financial profitability. Similarly, concerning the external factor, a high correlation of 0.901 is shown in terms of financial profitability, and medium, of 0.666, regarding economic profitability.