Introduction
Micro, small, and medium-sized enterprises (SMEs) are the driving force behind Mexico’s economy, accounting for 95% of all business units. In recognition of their importance on a global scale and the challenges they face daily, the United Nations General Assembly designated June 27 as International SME Day.
According to the Mexican Entrepreneurs Association (Asem), 59% of businesses close within the first three years, with only 10% surpassing this “valley of death.” Despite these daunting statistics, some SMEs have triumphed over adversity and stand as examples of resilience and inspiration. Here are the stories of three such entrepreneurs.
Eco.du: Eco-Friendly Personal Care Products
Arturo González and Mireille León faced significant financial hardship during the pandemic, with Arturo experiencing a 70% pay cut and Mireille losing her scholarship. Despite these challenges, they decided to leverage their expertise in natural beauty products and founded Eco.du, creating eco-friendly balsams, creams, and toothpaste tablets with recyclable packaging.
“We thought of busy women who want to revitalize their hair and body without sacrificing time,” explains Mireille León. In their first year, they struggled with sales but attended entrepreneurial fairs and incubators, which helped them grow exponentially. They now offer digital tools courses for aspiring entrepreneurs and plan to expand their market to the US and Canada, despite facing bureaucratic hurdles and costs.
Treska: Silver Craftsmanship for 40 Years
At 16, Alfonso Figueroa started a silver workshop with just $100 and a kilogram of silver from his grandmother. This marked the beginning of Treska, which has been in the market for 40 years. Alfonso’s goal of having 18 employees by age 18 fueled the company’s growth.
By age 21, Alfonso had his wholesale store and began importing and exporting, initially through a customs broker. The arrival of logistics companies like UPS simplified the process, making shipping and customer service more efficient. Today, Treska exports to the US, Thailand, China, Poland, India, Costa Rica, Bolivia, Guatemala, and Colombia, accounting for 40% of their sales.
Alfonso’s biggest challenge has been securing financing. When he was underage, he sought a loan to invest in machinery but was denied by the bank due to his age and lack of credit history. He then relied on trusted clients for funding, eventually investing in quality products and meeting customer needs to ensure the business’s success.
El Chilaquil Relleno: Stuffed Tlayudas Revolutionizing Street Food
The idea for El Chilaquil Relleno didn’t emerge from a formal business meeting but rather during a casual conversation about chilaquiles between Montserrat and José Carlos. This chance discussion sparked their entrepreneurial journey.
With the help of loans from friends and family, they opened their first outlet in Mexico City’s southern region. However, financial struggles forced them to close after three months. Despite these challenges, they persevered, eventually securing bank loans to invest in refrigeration equipment and expand their business.
“Our process is very artisanal, so we aim to industrialize more of it to achieve the necessary profitability,” says José Carlos. Their story exemplifies how determination and adaptability can help SMEs thrive despite obstacles.
