In a global panorama marked by economic uncertainty, entrepreneurship in Mexico is shown as a alternative to generate extra income; However, there are several challenges that slow their growth.
According to the Association of Entrepreneurs of Mexico (Asem), the average operation time is three years and eight monthsin which the main reason for failure is the lack of liquidity and working capital.
“Although 99% of MSMEs generate more than 70% of employment, they do not survive the first three years. This is a figure that we must consider and we must have a clear objective of how to contribute to these entrepreneurs who are starting“, mentions Diego del Valle, president of Entrepreneur’s Organization, CDMX chapter.
3 challenges that slow growth
The reasons why entrepreneurs do not usually operate for more than three years is due to three reasons, mainly. The first is the lack of knowledge in other areas, because many focus on aspects that they dominate. For example, they prioritize sales before the financial part.
The management of the company, such as the recruitment, cultural and administrative part, is something that you do not see when you start to undertake business at such an early stage.”
In fact, the 20% of entrepreneurs close due to poor administrative management, according to Asem.
The second point is carry all tasks, from customer collection and production. Although in the initial stages it is understandable, in the long term it becomes a problem.
Diego del Valle points out that The problem is centered on not delegating tasks.which causes entrepreneurs to not focus on strategy, but on daily operation.
While, the third challenge is the lack of business educationwhich, the president of Entrepreneur’s Organization, mentions that this problem occurs from an early age.
How to improve the entrepreneurial ecosystem?
To support entrepreneurs in the country, David del Valle proposes that the population is encouraged to be interested in business issueseven within educational institutions.
On the other hand, he considers that there must be less aggressive capital raising programs for entrepreneurs who are starting out.
Likewise, the access to financing in businesses that are at an early age It is complicated, so products or facilities are required to drive them.
Loneliness as an entrepreneur
When you start on your own, you usually feel like it’s a lonely roadsince they do not know other colleagues or do not feel understood with the daily problems of the operation.
“The common denominator is that we are solo entrepreneurs and we are convinced of what we want. The problem is that we want to solve the market and we became a little stubborn, but we also want to impact the community,” says Diego del Valle.
Along these same lines, the specialist mentions that by 2026, the organization seeks consolidate a new chapter in Pueblain which it will bring together entrepreneurs from the area to share experiences, visions and create networking sessions. In addition to the fact that it is planned to create a larger chapter in Mexico City, to increase and strengthen the network of entrepreneurs.
