Mexico | SMEs: The Cost of underinvestment

Summary

Mexican SMEs are key drivers of employment and economic growth, but they face barriers that limit their expansion. Low investment and shortcomings in areas such as workforce training and technology adoption, among others, reduce their productivity and hinder their ability to achieve greater scale.

Key points

• Key points:
• SMEs account for 4.5% of all business establishments, but together with large firms they represent 58.6% of employment and generate 84% of gross census value added.
• Investment per worker in large firms is more than three times higher than in SMEs.
• Only 44.3% of SMEs provide training to their employees, compared with 81.6% of large firms.
• Just 23.9% of SMEs obtained financing, while 13.7% lack accounting systems.
• Boosting investment, digitalization, and business capabilities is essential to increase productivity and foster growth.

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