June 27 is a crucial day for businesses. Why? Because since 2017, the UN General Assembly designated this date to celebrate Micro, Small and Medium Enterprises Day. These MSMEs are not only essential to achieving the Sustainable Development Goals of the 2030 Agenda , but they are also the pillar of the global economy. In Mexico, they represent more than half of the GDP, although only 45% of them survive the first two years.
To commemorate this day and highlight the challenges of MSMEs, CIAL D&B organized the round table “SMEs in Mexico: identifying challenges, adopting solutions.” The event, held on June 25 in Mexico City, brought together national and international media such as Reforma, El Economista and Reporte Índigo, as well as leaders from various industries, from the publishing sector to the aeronautical sector.
Our goal at CIAL was to foster collaboration and discuss the financial and economic challenges facing SMEs: to show how they can become more competitive using business data-driven solutions. Thanks to the participation of journalists and entrepreneurs, we exceeded our expectations and achieved great synergy. Below, we share some of the most significant insights from the event, exclusively for our CIAL Dun & Bradstreet clients.
SMEs as the Engine of the Mexican Economy
According to John Soldevilla, CEO of the economic consultancy ECOBI, MSMEs in Mexico represent 52% of the GDP and generate 72% of national employment. However, the lack of continuous monitoring limits the effectiveness of public policies to support them. These companies have advantages such as a close relationship with clients and employees, flexibility to adapt to changes, and speed in decision-making thanks to less bureaucratic structures. This direct knowledge of their clients’ needs gives them a significant competitive advantage.
However, they face challenges such as limited access to credit, high operating costs, and difficulties in attracting customers. Only 17.6% of their transactions are electronic, reflecting low technological integration. In addition, much of their debt is with suppliers, and they have little capacity to face economic crises, which affects their productivity and growth. Implementing effective policies and technological solutions is crucial to overcome these barriers and enhance their role in the Mexican economy.
Opportunities and Challenges for SMEs in 2024
Later, Sergio Hernández, CEO of CIAL Dun & Bradstreet, moderated a roundtable with three leaders and founders of SMEs in Mexico: Jeshua Vallarta, Director of Product Development and Design at EXUS; Susana Tamayo, Founder and Director of Content at 360 Agencia special database Editorial; and Juan Carlos Gutiérrez García, Founder and General Director of Champions Soccer Academy.
The objective of the roundtable was to create a friendly environment to foster dialogue between entrepreneurs from industries as diverse as aeronautics, publishing, and education. The three representatives shared their experience as directors of SMEs, and what have been the most frequent challenges they have had to deal with in their administration.
Jeshua Vallarta, for example, shared that in order for his company to remain competitive in the automotive industrial design sector, it must reduce its costs to be more attractive abroad, even though this tactic can undermine his company’s potential revenue.
Susana Tamayo, on the other hand, said that her publishing agency has managed to offer its services to important pharmaceutical companies. However, she admits that the road has not been easy, and that the lack of credit has led her company to take savings measures for its survival.
Juan Carlos Gutiérrez acknowledged that his greatest learning experience was leading esg and compliance in supplier management. ventures that were at risk of bankruptcy. Today, he has learned that businesses need to incorporate a human side if they want to prosper.
The three businessmen agreed that
the main challenges for SMEs in the coming years are related to the economic instability of our egypt data country, as well as social polarization. Resilience, human values, and creativity are three key factors that SMEs must implement in their operations to grow. On the other hand, they mention that expansion to other markets is a necessary solution to avoid losing momentum.
The Power of Credibility and Access to Opportunities
To close the event, Rodrigo Ramirez, Product Marketing Manager of CIAL D&B, presented a talk entitled “The Power of Credibility and Access to Opportunities.” He highlighted how CIAL facilitates efficient commercial exchange between SMEs and large companies, where everyone benefits. SMEs, as data producers, gain visibility and credibility, while large companies consume this data to make faster and more accurate decisions, mitigate risks and automate processes.