Anyone who has dared to start a business in Mexico will not lie if I say that setting up a company in Aztec lands is quite a challenge. And despite the existing support for entrepreneurs, the data leads us to wonder why SMEs fail in Mexico.
In addition to the problems of SMEs in the national territory, there are also various factors that do not support the entrepreneurial system. If you want to know what I am talking about, continue reading and discover the main problems of SMEs in Mexico and what causes the failure of companies. Thus, we can possibly learn from the mistakes of others.
What percentage whatsapp resource of SMEs fail in Mexico?
According to data from the Center for the Development of Business Competitiveness (CETRO-CRECE), 75% of SMEs in Mexico fail and close their operations before completing two years of having started operations.
And the problem doesn't end there. 80% fail before five years and 90% will not make it to ten years. This tells us about a systemic problem that needs to be resolved if we want to start a business in our country, since we must not forget that these businesses generate 72% of jobs in Mexico and represent 52% of the gross domestic product.
What percentage of SMEs closed in Mexico due to the COVID-19 pandemic?
Data from INEGI shows that nearly 21% of SMEs in Mexico disappeared in a period of 17 months. Looking at total numbers, nearly 1,010,857 businesses were the ventures that closed in 2020, with the most affected entities being Quintana Roo, Baja California Sur, Campeche and Colima.
What is the average life expectancy of an SME in Mexico?
Looking at the INEGI Census data from 2019 , the life expectancy of a business in Mexico is 7.8 years. However, if we look deeper by sector, the lifespan can vary significantly. Below I show you the life expectancy by sector at the national level.