Understanding the Ley BIC and Its Relevance
In recent weeks, Mexico has been discussing various laws such as the Customs Law, the Amparo Law, the Telecommunications Law, and the General Health Law. However, one proposal stands out for its significant potential to create positive change: a reform to the General Law of Mercantile Companies, which aims to establish the framework for promoting just, inclusive, and sustainable economic development through the encouragement and creation of social enterprises, impact businesses, or purpose-driven companies. These entities are known as Sociedades de Beneficio e Interés Común (BIC).
Mexico’s Delay in Embracing the Movement
The Ley BIC is not a novel concept; in fact, over the past decade, Latin America has witnessed a growing movement to align corporate profitability with positive impact. Colombia was the first in the region to adopt a BIC law in 2018, followed by Ecuador’s recognition of BIC quality in 2019. Peru promulgated the BIC law in 2020, and Uruguay approved both the BIC law and its regulation in 2021. Panama followed suit by creating a BIC regime in 2022.
Although Argentina has debated a BIC law since 2016, the agenda remains active as the sector demands more operational certainty. Mexico, with its significant social disparities, has also fostered a vibrant impact entrepreneurship ecosystem. However, the lack of legal recognition promoting socially and environmentally responsible business models has hindered the growth of more impact businesses due to uncertainties in operation, limited access to specialized capital, and insufficient growth.
Ley BIC: A Driving Force for Mexico’s Development Plan
Now more than ever, it makes sense for Mexico to have a modern Ley BIC. This law will aid in implementing the Plan México by fostering a socially-focused vision for economic development. Specifically, an agile regulation will increase competition among local social enterprises, encourage impact-proven public procurement, and promote businesses with solutions to societal challenges.
If Mexico successfully implements the Ley BIC, it won’t merely “catch up” – it will catalyze a more inclusive and competitive economy where profit becomes the means, rather than the end. This approach aligns with the best BIC laws, focusing on generating verifiable public benefits. This is the type of economy Mexico needs.
Key Questions and Answers
- What are Sociedades de Beneficio e Interés Común (BIC)? BIC are social enterprises, impact businesses, or purpose-driven companies that aim to generate both profit and positive social or environmental impact.
- Why is Mexico late in adopting the Ley BIC? Despite a growing movement in Latin America, Mexico has been slower to recognize and regulate these socially responsible business models, hindering the growth of impact businesses.
- How will the Ley BIC contribute to Mexico’s economic development? The Ley BIC will promote a socially-focused vision for economic development, increase competition among local social enterprises, encourage impact-proven public procurement, and support businesses with solutions to societal challenges.
- What are the benefits of implementing a modern Ley BIC in Mexico? A modern Ley BIC will catalyze a more inclusive and competitive economy, where profit serves as a means to generate verifiable public benefits.
