SMEs in Mexico

Although small and medium-sized enterprises (SMEs) in Mexico comprise the near-totality of firms in the formal economy, they are hampered by a lack of financing and skilled workers, with only a small percentage able to compete successfully at home and abroad. This book assesses the comprehensive SME policies introduced by the Federal Government during the past six years aimed at improving the efficiency and competitiveness of Mexican SMEs by reducing barriers to entrepreneurial activity.  While lauding the improvements achieved by the new policy measures, including better access to financing,  reduced lead times for firm creation, and higher survival rates, the review cautions that there is room for improvement. Specifically,  the capacity of states and local authorities to absorb federal policy programmes needs to be enhanced,  and tailor-made initiatives in favour of micro firms need to be expanded. In addition to examining the SME policies and programmes that have been put in place, the review makes practical recommendations on how to improve policy co-ordination,  create an efficient evaluation culture at all levels of government and strengthen the entrepreneurial business environment.