Mexico leads in public policies for SMEs in Latin America

The report of the Organization for Economic Cooperation and Development (OECD), entitled "SME Policy Index: Latin America and the Caribbean 2024" (SMEPI PI), has positioned Mexico as one of the regional leaders in terms of public policies aimed at fostering the growth of micro, small and medium-sized enterprises (MSMEs).

The recent report of the Organization for Economic Cooperation and Development (OECD), entitled "SME Policy Index: Latin America and the Caribbean 2024" (SMEPI PI), positions Mexico as one of the regional leaders in public policies to promote micro, small and medium-sized enterprises (MSMEs). 

This recognition underscores the importance of these companies, which represent 99.7% of total business in Mexico and contribute 35.6% of national production, according to INEGI. However, the report not only highlights the country's achievements, but also exposes challenges and opportunities that could shape the future of the Mexican market.

The report notes that Mexico stands out in seven of the eight aspects evaluated, especially in the strength of its institutional framework and simplified operating environment, which have allowed MSMEs to find more fertile ground for their development. 

The implementation of the national regulatory improvement strategy and the Simplified Trust Regime (Resico) has facilitated the formalization of companies, which is crucial for their growth and competitiveness. 

Digitalization has also shown significant progress, driven by the National Digitalization Strategy and the National Broadband Plan, which have begun to close the technological gap. However, the OECD stresses the need to develop more focused initiatives that respond to the specific needs of MSMEs in this area, which presents an opportunity for Mexico to continue to lead the region in technological adoption.

Despite these strengths, access to financing remains a significant weakness. Although there are institutions that try to facilitate this access, MSMEs continue to face high interest rates and a lack of financial instruments suited to their needs. 

This situation highlights a vulnerability that could hinder the growth of this key sector of the economy. The OECD recommends the creation of a separate securities market for MSMEs and the reduction of collateral requirements for medium-term loans, which could level the playing field and make financing more accessible. This recommendation becomes an opportunity for the Mexican government and the financial sector to work together to develop solutions to boost the competitiveness of MSMEs.

Another weakness identified in the report is insufficient support in development services and public procurement. The dissolution of the Instituto Nacional del Emprendedor (Indem), which centralized policies related to MSMEs, has left a vacuum that has not yet been completely filled by new government initiatives.

Although the Ministry of Economy has attempted to fill this gap with programs such as Exporta.mx and MipymesMX, the OECD highlights the need for a more robust and targeted national strategy to support high-potential and innovative MSMEs. This gap represents a threat to the sustainability and growth of the sector, especially if comprehensive policies are not developed to address these shortcomings.

The global and regional context also poses threats that could affect the Mexican market. Persistent labor informality in Latin America, which although improving since the pandemic, remains high, is a challenge that directly impacts the ability of MSMEs to grow sustainably. In addition, gender inequality in access to the labor market and the lack of income for many women entrepreneurs represent barriers that limit the country's economic potential.

The OECD stresses the importance of continuing and expanding policies that promote the inclusion of women in business, which is not only an equity issue, but also a missed economic opportunity.

In the midst of this panorama, the arrival of a new administration in October 2024 offers a window of opportunity for Mexico to review and adjust its public policies in support of MSMEs.

The OECD report comes at a crucial time, providing a roadmap that the new administration can use to evaluate policies implemented since 2019, identify good practices and improve key areas. The ability of the new government to act on these recommendations will be decisive for the future of the MSME sector and, therefore, for the country's economic direction.

In conclusion, the OECD report not only highlights Mexico's achievements in strengthening its institutional framework and digitization, but also highlights areas where decisive action is needed to overcome challenges and seize opportunities.

The development of an independent securities market for MSMEs, the creation of inclusive and targeted policies, and improved access to financing are critical areas that, if properly addressed, could transform Mexico's economic landscape, consolidating MSMEs as a key driver of growth and development.

This is a decisive moment in which public policies must be aligned with market needs to ensure a prosperous and equitable future for MSMEs and, ultimately, for the entire Mexican economy.

Collaboration: Editorial Auge.