SMEs in Mexico Issues and Policies

Although small and medium-sized enterprises (SMEs) in Mexico make up most of the firms in the formal economy, they are hampered by a lack of financing and skilled workers. This book assesses the comprehensive SME policies introduced by the Federal Government during the past six years. 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 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, the review makes practical recommendations on how to improve policy co-ordination, create an efficiency evaluation culture at all levels of government, and strengthen the entrepreneurial business environment.