Mexico: Open for Business
At dataPlor, we know that emerging markets are one of the best places to look for revenue growth. Economic growth is decelerating in developed countries, venture investment is going down, and competition is high in most industries. Frontier markets provide an exciting opportunity to capture under-penetrated markets and win first-mover advantage in a growing economy. Here we provide insights on Emerging Markets to consider for your company’s growth strategy.
Top three reasons to do business in Mexico:
1) The government is focused on SMB success:
Over the past few decades, Mexico’s large enterprises that comprise their public stock exchange have grown significantly. However this has not had a direct impact on the country’s per-capita GDP because much of the growth was realized through international expansion. In order to stimulate the economy’s GDP, bottom-up innovation is required, and the local government has but programs in place to stimulate entrepreneurship and SME growth.
The 2016 Financial Inclusion Strategy put in place by President Nieto stresses the importance of funding for small businesses and setting them up for success. The federal government manages specific programs targeted to micro and small enterprises, such as business incubators for “basic enterprises” (empresas básicas), a programme on micro-franchising, and one which encourages the upgrading of managerial skills and ICT adoption in microenterprises. (http://www.oecd.org/mexico/)
2) Strong position in Free Trade Agreements
Mexico has access to 45 countries through participation in 10 free trade agreements. They are a global leader in manufacturing and local suppliers are increasingly being exposed to nontraditional markets and developing relations with foreign suppliers. The president of Mexico just signed formal partnershipwith Alibaba in September of 2017 to empower their growing network of SMB’s even further.
3) Proximity to USA
If you are a US-based company, our proximity to Mexico can be a positive. Mexican consumers are used to American advertising, products, and culture, so understanding and reaching your audience here can be easier than many other emerging markets. Communication and management is easier due to shared time zones as well.