The State of Mexico Leads in Family-Owned Microenterprises
The State of Mexico is the federal entity that hosts the largest number of microenterprises in the country, accounting for nearly 13% of the total registered.
Micro, Small, and Medium Enterprises (MSMES) in Mexico
There are approximately 4.5 million small businesses and family-owned enterprises, known as MSMES, in Mexico. According to the Inegi (National Institute of Statistics and Geography), these businesses are crucial to the Mexican economy, generating more than half of the country’s Gross Domestic Product (GDP) and employing 7 out of 10 active workers.
Family-Based Microenterprises in Mexico
An essential aspect of microenterprises in Mexico is their family origins. A staggering 90% of these businesses emerge from familial contexts.
Challenges Facing Mexican Microenterprises
Despite their economic and productive importance, half of the MSMES in Mexico fail to surpass two years of operation. The primary reasons for these failures include insufficient liquidity, limited access to financing, and partner disputes.
Key States for Family-Owned Microenterprises
- State of Mexico (13%)
- Mexico City (10%)
- Jalisco (9%)
- Veracruz (8%)
- Guanajuato (7%)
Key Questions and Answers
- What are MSMES? Micro, Small, and Medium Enterprises (MSMES) refer to businesses that employ fewer than 250 people and have a turnover below €50 million or a balance sheet total below €43 million.
- Why are MSMES important in Mexico? MSMES contribute significantly to the Mexican economy, generating over half of the country’s GDP and providing employment for 7 out of 10 active workers.
- What percentage of microenterprises in Mexico are family-owned? Approximately 90% of microenterprises in Mexico originate from familial contexts.
- What are the main reasons for the failure of MSMES in Mexico? Common causes include insufficient liquidity, limited access to financing, and partner disputes.
