Despite 70% of Mexicans wanting to start their own business, 84% cite corruption or insecurity as a major obstacle, according to a study by Research Land.
Challenges for Mexican Entrepreneurs
- Lack of Financing: 62% of respondents mentioned this as a challenge.
- Unfair Competition and Informality: 60% highlighted the issue of unregulated businesses that undercut prices.
- Bureaucratic Barriers and Complex Tramites: 60% pointed to this as a significant hurdle.
- Difficulty Finding Skilled Talent: 33% expressed concern about the scarcity of qualified employees.
Corruption: The Main Challenge for 84% of Mexicans
Pablo Levy, Director of Research Land, explained that numerous tramites are required to start a business. To expedite the process, some resort to “coyotes”—intermediaries who often introduce corruption even before the business is officially established.
An Inegi study, conducted by Research Land, revealed that in 2013, 47% of tramites involved corruption or ‘mordida.’ By 2023, this figure had risen to 60%, indicating a growing problem.
States with the highest corruption levels are Chiapas, Michoacán, CDMX, Puebla, and Guerrero. Meanwhile, Yucatán, Querétaro, and Baja California reported lower indices.
Additional Obstacles
Unfair Competition: 60% of respondents identified businesses operating without proper licenses or paying taxes as a challenge, making it difficult to compete on price.
Insecurity: Small businesses often face the necessity of paying for protection against crime, which can ultimately strain their finances and threaten their survival.
Financing Shortage: 62% of respondents considered the lack of funds a significant obstacle. However, those who never managed to establish their businesses never experienced this issue.
