01 Feb MEXICO, A WORTH MARKET FOR THE SMALL AND MEDIUM-SIZED ENTERPRISES
Can Mexico represent a worth market for the small and medium-sized enterprises?
In my professional experience as Mexican lawyer alongside those companies that have already taken this important step with success, I can confirm, it is!
Mexico, a business-friendly country
Mexico is one of the first country in the World to make business and such trend is not going to stop in the future. Below some of the main reasons:
- Remarkable macroeconomic and political stability;
- Size of his internal market (more than 120 millions of inhabitants);
- Steady economic, technological and demographic growth;
- Strategic geographic position to expand a business in all the American Continent;
- New free trade agreements allowing the access to more than 45 countries and to more than 1000 millions of potential consumers;
- Young, qualified, motivated and tireless human capital;
- Highly competitive costs;
- Economic reforms to encourage foreign investment in Mexico;
- Federal and local tax incentives to attract foreign investment;
- Possibility to incorporate a Mexican Company in a very few days, from afar, at a low cost, and with 100% of foreign capital;
- Complete control over the company in Mexico, also from afar;
- Open minded culture and mentality;
- One of the best tourist destinations in the world.
The distance does not represent an obstacle.
So far, many foreign investors see the distance as a risky factor, they are afraid not to keep the situation under control.
Well, such concern should not be perceived as a problem any more.
Reaching Mexico is easier than ever.
First of all, now it is very easy to reach Mexico from every part of the world and with pretty affordable costs. The flight connections to the World’s principal capitals are increasing. One example of this, is the brand-new air route Mexico City-Barcelona, starting from next June.
The continuous physical presence of the investor in Mexico it is not necessary any more.
Secondly, in the era of the technological development and of the Industry 4.0, geographic distances are no longer an obstacle and the need to be present personally in a single place has been minimized. This apply also for an entrepreneur willing to make business in Mexico. It is possible to incorporate a New Co. from afar (very quickly and with low costs) and then, operate and control it without particular problems. For example, it is possible to safely open and operate a bank account of a subsidiary from abroad, autonomously.
Recruit reliable employees has become simpler.
Entrusting the day by day activities of your Mexican company to reliable employees is not a problem any more. At first glance seems better for a foreign company to shift to Mexico their own personnel. However, in this Country this could be an exception. Mexican human capital is getting a big resource also for foreigner investors; it is young, motivated and very qualified in all levels. Moreover, the research is easier thanks to the growing presence of high qualified recruitment companies.
Affinities with Mexican culture represent the secret of success.
Another concern that holds back the initiative to expand a business abroad is the cultural matter. I got to know the Mexican culture and mentality and I found out a lot of affinities with the European ones. That represent a big plus for a foreigner investor. The secret to succeed, especially on the businesses abroad, is to be open minded, trying to adapt your mentality, your product or your service to the peculiarity of the locals. In Mexico, those peculiarities do not represent an obstacle and a foreigner entrepreneur will notice it very soon.
Lic. Giovanni Braccini