In Mexico, four out of ten entrepreneurs have experienced failure in some of its companies, being the lack of market knowledge the main reason, reveals the X-ray of Entrepreneurship in Mexico 2023.
According to the analysis carried out by the Association of Entrepreneurs of Mexico (Asem)the lack of financial education for entrepreneurship has gained relevance compared to last year, which was ranked as the second cause of failure, behind lack of liquidity.
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In the first three years of operation of the companies, 87 percent of capital sources come from own resources and the reinvestment of profits generated, while only six percent comes from angel investors, venture capital or crowdfunding.
The X-ray of Entrepreneurship in Mexico 2023 collected data from more than two thousand micro, small and medium business entrepreneurs (MSMEs) from all sectors and industries in the country.
The study also pointed out that the conditions to start a company in Mexico are unfavorablesince more than 60 percent of new entrepreneurs seeking to start a business in the country have not received support.
According to the survey, seven out of ten companies have not obtained support neither from the private initiative nor from the government.
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In this situation, Asem called to include entrepreneurship in the country’s political agenda, since 57 percent of entrepreneurs are not aware of programs to promote, manage or support entrepreneurship. Furthermore, the existing ones lack sufficient diffusion.
“Entrepreneurship must be included in the candidates’ agendaof the candidates and that we can talk about entrepreneurship in the next six-year term,” said Juana Ramírez Bustos, president of Asem.