Regulatory Challenges for Small and Medium Enterprises (SMEs)
According to a survey conducted by the Confederation of National Chambers of Commerce, Services, and Tourism of the Mexican Republic (Concanaco Servytur), 60% of small and medium-sized enterprises (SMEs) consider that overregulation is a significant barrier to becoming more competitive compared to larger corporations.
Key Issues Faced by SMEs
- Excessive Fiscal Regulation: 26% of the surveyed SMEs identified this as a major obstacle to growth and innovation.
- Complex Business, Administrative, and Sanitary Procedures: 26% of respondents highlighted these as significant challenges.
Impact on SMEs
The survey, conducted between April and May 2025 among 773 businesses across all Mexican states, revealed that bureaucratic procedures and the time required to comply with regulations directly affect profitability, impacting 76% of SMEs.
Maintaining profitability is a primary challenge for small businesses to sustain their operations. Many SMEs are either newly established or lack sufficient staff, with 30% being founder-operated and supported by family members, while 45% have fewer than 10 employees.
Moreover, the survey found that most SMEs are unaware of their obligations due to time-consuming processes and lack of knowledge. Approximately 58% check their obligations at least once a year, while only 22% do so frequently.
The Need for Simplified Procedures
A proposed law by President Claudia Sheinbaum, aiming to simplify administrative processes and digitize tramites (procedures) and services, is expected to aid SMEs in developing more efficiently.
When asked about the effectiveness of online tramites in complying with regulations, 51% of SMEs responded positively but noted that the assistance was limited to certain aspects. Meanwhile, 24% found online tramites highly beneficial, while 18% saw no difference.
Key Questions and Answers
- What percentage of SMEs believe overregulation affects their profitability? 76% of SMEs reported that regulatory compliance directly impacts their profitability.
- What are the main regulatory challenges faced by SMEs? The survey identified excessive fiscal regulation (26%) and complex business, administrative, and sanitary procedures (26%) as significant obstacles.
- How do SMEs perceive the effectiveness of online tramites? While 51% acknowledged some benefits, only 24% found online tramites highly effective in navigating regulatory compliance.
