<span>Kristina recently inherited the business of her late father. In his 18 years of business experience at this location he was never able to grow the business past the subsistence stage. How she will eventually fare is dependent on the same factors faced by her late father. They include her ability to overcome the opposition of local residents, raise capital to build a larger stand and move the current location of her newspaper stand. Since her father was unable to do this in more than 18 years of business in this location, the odds do not seem promising. And yet, she seems determined, despite her inexperience, to grow the business. Will she succeed? Erik has been working at a location near Kristina for more than 18 years. In this time his business has undergone changes, but one thing has remained constant: the small size of the business. Erik began operating a shoeshine cart at this location when he was a young man. His ability to grow his business, according to him, is hampered by the fact that he does not have anyone to assist him and there are few remaining available locations. Despite his desire to expand his business he lacks the access to capital and the help to make this dream possible. Can he advance? In stark contrast, Carlos has been operating a micro-enterprise for the past 20 years. He, like Erik, began by selling in front of a large office building. However, unlike Erik, his business has grown during the past 20 years and now includes three locations and employs four workers. His largest newspaper and candy stand is in a prime location fronting to the serpentine beltway that encircles Mexico City (the periferico). Carlos is also the younger brother of Kristina's late father. They both operated similar businesses for a comparable period of time. And yet, Carlos was able to develop and expand his business to a point where it thrived and permitted Carlos to purchase a house in the suburbs of Mexico City, a stage Kristina's father never reached. His business has made the leap from subsistence stage to longer-range sustainability. What accounts for the differences between these different vendors? And what is likely to </span><span>happen to Kristina in her efforts to grow her father's business. The central question I seek to answer is why some micro-entrepreneurs remain at subsistence level whereas others progress? I address this question in this ethnography by examining the work of three street vendors in Mexico City. I find that the ability to accurately assess and manage risk in an environment filled with complex legal and financial uncertainty is an important factor in micro-entrepreneur growth. The uncertainty faced by micro-entrepreneurs in developing countries is significant because in addition to the financial uncertainty surrounding their businesses they have only quasi- legal status. The activity is at best tolerated and this lack of defined legal status adds to the existing financial risk of their business because it exposes them to additional threats to their subsistence income. These threats take the form of veto events that can quickly plunge them into financial distress. I label these veto events because the y can prevent a micro-entrepreneur from assuming the risks that can lead to growth. These events mark difference between being able to chambear, as one of the vendors describes his work, and not being able to earn a living. Once micro-entrepreneurs have reached the subsistence stage their ability to progress to the next level of enterprise depends in large measure on their ability to assess and manage risk. And this risk involves a complex assessment. My interest in studying this topic stems from the fact that I manage a large organization in Latin America and had observed the vendors in this area of Mexico City for several years. I eventually became curious about their work and their lives and I wondered if there were parallels between their work and mine. As I researched theories of micro-enterprise I saw that these micro-entrepreneurs efforts could not be categorized in any uniform way. Some were obviously struggling to eke out a meager living while other seemed to be thriving. I was curious why this occurred. I am hopeful that this study can shed light on how to improve the ability to serve this group.Doctorate of Management Programs</span>
