The small and medium businesses in Mexico They are the backbone of the country’s economy. however they are also the weakest link in the chain in the economy growing.
The SMEs they have never had it easy, and even more so after two years of Covid-19 pandemic where some suffered to survive and in other cases they had to die due to lack of income and support and credit schemes according to the moment they were going through.
In Mexico, these types of companies are the largest generators of employment, 72 percent of total jobs in Mexico and represent 52 percent of gross domestic product.
The SMEs they promote economic development, generate employment and competitiveness, expand the market, open the market and distribute wealth in a nation.
They are so important that they should be addressed by governments and citizen organizations because they are the backbone in the development and economic support of thousands of families.
Although it is true, we almost always refer to the big brands and franchise names at an international level, the reality is that those who have removed the caste and maintain the economy of Mexico are small and medium-sized companies.
That should be taken as soon as the different levels of government and banking institutions, it is not possible that the country does not have some type of body, dependency or institution that supports the effort that SMEs make to survive and keep their businesses open generating thousands of jobs.
These businesses are the ones that contribute the most to the generation of wealth and the opening of jobs for millions of families.
It is a sector that urgently requires support to continue growing, they need support for the benefit of the country’s economic stability.
What great challenges do SMEs face in Mexico today!
Mainly the challenge of keeping their curtains up, the average life expectancy of a newly created company in Mexico is 7 years and only 2 out of 10 manage to exceed 10 years of life.
It is undoubtedly a complicated scenario and what they face is a major challenge, because they also have to respond to a first-order need such as financing, since they do not have large budgets.
They live up to date and do not have the knowledge of large companies that do have management and accounting models backed by advice from experts in the field.
In addition, commercial banking and the institutional offer of financial services aimed at SMEs is minimal, reduced and with a series of guarantees that in most cases cannot be fulfilled by a company or business that has just started operations, since they have not been consolidated in its cash flows.
Another of the challenges faced by small and medium-sized companies or businesses is the great unequal competition against the large chains and brands.
As an example are the large convenience stores and supermarkets that little by little have annihilated the small grocery or corner store in the neighborhoods, neighborhoods and communities.
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It is an adverse market, these small business establishments cannot compete with the large consortiums that have greater financial solidity, cash flow and technological structure.
In the era of digital transformation, the threat can become a great challenge to be overcome by small and medium-sized companies, digital technology, artificial intelligence, certifications and formality are some of the pending tasks to be done.
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