Mexico | The New Business Map in Mexico

Summary

MSMEs are the backbone of employment in Mexico, but face widening gaps with large firms in productivity, financing, and digitalization. These constraints limit their contribution to value added and shape growth prospects in a context of lower global economic dynamism.

Key points

• Key points:
• MSMEs account for 99.8% of economic units and over 71% of employment, but generate less than half of value added and gross output.
• There is a widening structural gap between MSMEs and large firms in productivity, access to finance, and digitalization.
• Manufacturing shows one of the largest gaps: MSMEs provide more than 40% of sector employment but only about 20% of value added.
• Access to formal financing is limited and uneven: only one in nine firms obtains credit, with wide differences by firm size and region.
• Low levels of digitalization constrain growth: few firms use advanced technologies or e-commerce, yet those that do capture a disproportionate share of digital revenues.

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