The impact of SMEs in Mexico

The development of small and medium-sized enterprises in Mexico are an essential component of economic growth and job creation. The contribution of these companies has a higher weight at the internal level of the country, so the population and the economy depend almost entirely on them. For a company to be successful, and especially for these growing companies, they must offer quality services and products to be efficient within the market. Mainly because they are companies that do not have so much recognition and compete with companies that are already positioned, they must offer something more.

The growth of small and medium-sized enterprises allows for increased competitiveness, both internally and externally. In most cases, these companies supply raw materials to larger organizations. In Latin America, they contribute 36% to the generation of employment. Talking about micro-enterprises, some of their main characteristics is that they promote work in the region where they are located. Therefore there is an improvement in production and economy.

The people who usually use the microenterprise method consists of a minimal number of administrative staff and are often family businesses, such as dental implants Tijuana clinics. The fact that only the company is family-owned is due to the shortage of members; the owners usually do the administrative function. They hardly have technological devices, and this may be due to the lack of resources. Although in most of the companies in this line of business, they do not have trained personnel in the area, this helps the participation of people and the decrease of unemployment in the entity.

Some of the disadvantages of microenterprises are that they do not always have economic support so that their finances live up to date. They are more susceptible to control problems; they do not have a specialized administration so it can generate a corrupt organization and planning inside and outside the company.

Concerning medium-sized companies, these are those with between fifty and two hundred and fifty employees. It is characterized by the above mentioned, the number of employees, for having technological tools and because they have some financial support that allows them to grow quickly. The disadvantages of this type of company are that, as small companies, if they do not have support from an institution, they can have financial problems. Production costs are usually higher, and since they are not as well known as other large corporations, they can have difficulties in positioning themselves in the market.

Due to the contributions, several Mexican institutions support people who want to start a business. Even though there are government institutions (Injuv, Sernatur, Sernam, among others) that support the growth of entrepreneurs, there are also private companies that bet on entrepreneurship, for example, Cinépolis, Cemex, Televisa, etc.). Currently, Mexico is among the first five places in Latin America to support and encourage the creation of micro-enterprises.

The main cities in each country are usually where you can find these types of companies. In Mexico, the three main ones are Mexico City, Guadalajara, and Monterrey, although there has also been an increase in border cities such as Tijuana. SMEs indeed tend to have more problems since they compete with a vast market, but they are the ones that contribute the most to the country.