Global Uncertainty and Local Challenges
In a global landscape marked by economic uncertainty, entrepreneurship in Mexico stands as an alternative to generate extra income. However, several challenges hinder its growth.
According to the Mexican Entrepreneurs Association (Asem), the average operational time is three years and eight months, with the primary cause of failure being insufficient liquid assets and working capital.
Three Barriers to Entrepreneurship Growth
- Lack of Knowledge: Many entrepreneurs focus on areas they excel in, such as sales, while neglecting other crucial aspects like finance, recruitment, and administration.
- Overburdened Responsibilities: Entrepreneurs often handle tasks ranging from billing clients to production, which can become problematic in the long term.
- Insufficient Business Education: This issue starts early, as Diego del Valle, president of Entrepreneur’s Organization, CDMX chapter, points out.
Managing a business, including recruitment, cultural, and administrative aspects, is often overlooked when starting early.
Twenty percent of entrepreneurs close due to poor administrative management, according to Asem.
Improving the Entrepreneurial Ecosystem
To support entrepreneurs in Mexico, Diego del Valle proposes encouraging the population to engage with business topics, even within educational institutions.
He also suggests less aggressive capital-raising programs for budding entrepreneurs and easier access to funding for early-stage businesses.
Accessing financing for fledgling businesses is challenging, so products or facilities are needed to boost them.
The Loneliness of Entrepreneurship
Entrepreneurship can feel like a solitary journey, as many do not connect with fellow professionals or feel understood regarding daily operational challenges.
“We are solitary entrepreneurs, convinced of our goals. The issue is that we want to conquer the market and can become somewhat stubborn, but also wish to impact our community,” Diego del Valle explains.
Entrepreneur’s Organization aims to consolidate a new chapter in Puebla by 2026, gathering local entrepreneurs to share experiences, perspectives, and create networking sessions. Additionally, plans are underway for a more extensive chapter in Mexico City to strengthen and expand the entrepreneurial network.
Key Questions and Answers
- What are the main challenges facing Mexican entrepreneurship? The primary issues include insufficient knowledge in various business areas, overburdened responsibilities, and lack of formal business education.
- How can the entrepreneurial ecosystem be improved? Encourage business engagement in education, provide less aggressive capital-raising programs, and improve access to funding for early-stage businesses.
- What unique challenges do entrepreneurs face? Entrepreneurship can be a lonely journey, with entrepreneurs often feeling isolated and misunderstood regarding daily operational challenges.
