The Influence of Government Support, Innovation, and Marketing Capabilities on the Economic Performance of Rural SMEs: A Look at Costa Rica

Abstract

This quantitative study examined how government support, innovation, and marketing capabilities impact the economic performance of 443 rural micro and small enterprises in Costa Rica. Data was collected between March and July 2025 using structured questionnaires. The findings revealed that innovation is the most significant predictor of business performance, showing a strong and positive effect. Perceived government support also demonstrated a positive and significant impact on performance. Marketing capabilities, despite having a complex factorial structure, had a marginally significant effect on business performance. In summary, the combination of internal factors (innovation and marketing capabilities) and external factors (government support) is crucial for boosting the performance of Costa Rican rural SMEs. It is recommended that government institutions focus support programs on fostering innovation, considering both financial backing and the development of internal innovative capabilities. This cross-sectional study, with its convenience sampling, suggests future longitudinal research and the inclusion of additional variables for a deeper understanding.