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An overview of support systems for SMEs in Mexico
Small Business Enterprise Exchangefor
International PartnersOklahoma, U.S.
Dr. Alejandro González HernándezApril 30th 2004
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SMEs in Figures
Classification by employees number
Source DOF 30.12.2002
The criteria to determine business stratification
have changed throughout time. Because, small and
medium sized enterprises have incorporated
information technologies and software to generate
a higher aggregated value by new processes and
flexible production schemes.
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SMEs in Figures
Percentage StructureMexican Economy
Number of Businesses
Source Industrial Census 1999. INEGI.
Percentage Structure
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SMEs in Figures Employees
Percentage StructureEmployment by business
sizeMexican Economy
Source Industrial Census 1999. INEGI.
As it can be seen in the table, 26 of employment
is linked to Small and Medium sized Enterprises.
The trend in Mexican Economy points out to
encourage these particular kind of businesses and
the Federal Government is developing innovative
schemes to encourage them.
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Systems to communicate SMEs
Within the Country www.siem.gob.mx
(intracountry) www.hidalgobusiness.com
(industrial clusters of national and
international enterprises) With SMEs in other
countries www.bancomext.com/Bancomext/portal/porta
l.jsp?parent10 SMEs in other countries with
SMEs within the country www.e-mexico.gob.mx/wb2/eM
ex/eMex_Directorio_de_Empresas_Exportadoras_y_Prov
eed www.bancomext.com/Bancomext/portal/portal.jsp
?parent141 (exporters) http//www.bancomext.com/B
ancomext/portal/marco.jsp?cveApp1
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Chambers for small and medium sized enterprises

• There are three main confederations of chambers
  for Enterprises in Mexico, which compile 280
  different chambers throughout the country
• National Chamber of Commerce www.canaco.org.mx
• National Chamber for the Manufacturing Industry
  www.canacintra.org.mx
• National Confederation of commerce chambers
  www.concanaco.org.mx

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Tax structure for SMEs

• There are slight differences in tax schemes
  between enterprises according with income level,
  conventionally people and enterprises have to pay
  an tax revenue of 34. However, there are some
  exemptions to stimulate particular areas and
  sectors according with local tax incentives and
  policies, which are determined by local
  Governments.
• In particular, there are two main regimens for
  SMEs
• Small tax payers Income lower than 153,000 USD
• Intermediate tax payers Income lower than
  350,500 USD
• However, there is not a flat tax for SMEs.

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Special benefits for SMEs

• The Secretary of the Economy
• SMEs Fund (FONDO PYME)
• Subsidies to create support, develop, finance and
  encourage productive activities
• National fund for Social Entreprises.
• Finances and supports productive projects form
  rural areas.
• National Finacing Bank (Nafinsa)
• - Offers warranty funds to develp and incentive
  Risk Capital
• - Promote acesory incentives to SMEs incrising
  opportunities to diversify products and
  markets.
• Foreing Commerce Bank (Bancomext)
• - Promote schema to encourage businesses expots
  through trade shows, on-line promotion of
  products and enterpress to cover the financial
  demand

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Special benefits for SMEs
SMEs Fund 2004
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Special benefits for SMEs
SMEs Fund 2004
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Special benefits for SMEs
SMEs Fund 2004
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Special benefits for SMEs
SMEs Fund 2004
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SMEs in Mexico

• The modern Mexican industry is linked to
• New strategic activities carried on by
  enterprises, which are searching linkages towards
  new competitive schemes and technological
  innovation.
• Businesses design cooperative mechanisms to
  create new products, develop more efficient
  productive processes taking advantage of scope
  and agglomeration economies. Furthermore,
  technologies of information and communication
  promote flexible mechanisms to encourage
  asynchrony production and design tasks.
• Businesses transit towards cooperative systems,
  which involve actors allocated throughout Mexico.

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Support systems for SMEs in Mexico

• Mexican Government copes with a complex
  endeavour
• Encouraging the development of new higher
  aggregated value activities and supporting core
  industries to achieve a global competitiveness.
• In order to complete this task, the Mexican
  Government has designed and implemented a set of
  support systems, such as
• Small Business Centers
• Incubators
• Policies to stimulate industrial clusters
• Networking systems based on information
  technologies.

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Support systems for SMEs in Mexico

• Mexican Government copes with a complex
  endeavour
• Encouraging the development of new higher
  aggregated value activities and supporting core
  industries.
• In order to complete this task, the Mexican
  Government has designed and is implementing a set
  of support systems, such as
• Small Business Centers
• Incubators
• Policies to stimulate industrial clusters
• Networking systems based on information
  technologies.

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Support systems for SMEs in Mexico Thinking
globally and acting regionally
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Support systems for SMEs in Mexico Small
Business Centers
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Support systems for SMEs in Mexico Incubators


Industrial parks
Local Gvnt.
Businessmen
Equipment
Investors
SuccessfulModel
SpecializedConsultancy
SuccessfulModel
Academics
Virtual Market place
Infrastructure
Researches
IndustrialClusters


Financing
Entrepreneurs
Information
Systems
Expositions
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Support systems for SMEs in Mexico Incubators
Infraestructure
SpecializedTraining
SuccessfulModel
Equipment
Entrepreneurs and innovative ideas
SpecializedConsultancy
Financing
Financing
Tutors
Academics andResearches
Chambers andBusinessmen
NetworkingAssistance
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Entrepreneurship Culture Promotion
Friendly framework topromote new projects
andbusiness plans
Project
Project
ModelsTransference
Universities
Project
Project
BusinessesOrganizations
90,000
Non GovernmentalOrganizations
National Incubation System
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B
C
B
C
B
A
A
A
B
2003 Incubators
JAL
CHIH
B
A
B
B
A
A
B
A
High TechIncubation Model
A
C
Tradicional Activities Incubation Model
A
NL
DF
Best practices on Incubation process
Incubation Models
Traditional Activities Incubation Model
c
B
Linkages and Support Assistance
C
A
B
C
A
A
B
A
B
B
A
A
B
BC
A
B
C
B
B
C
C
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Innovative Business Clusters
BC
CHIH
NL
JAL
DF
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Incubator inSilicon Valley
Enterprises
Successful projects
CALIFORNIA
CivilAssociations
FinancingAgents
NATIONALINCUBATIONCOUNCIL
Research andKnowledgeCenters
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Support systems for SMEs in Mexico Networks
Based on Information Technologies

• www.siem.gob.mx
• www.hidalgobusinesses.com
• www.e-mexico.gob.mx/wb2/eMex/eMex_Directorio_de_Em
  presas_Exportadoras_y_Proveed
• http//www.bancomext.com/Bancomext/portal/portal.j
  sp?parent141
• www.bancomext.com.mx

Web pages to contact suppliers and producers
within the Country
Web pages to contact exporters and business
opportunities for SMEs
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Why is important to change towards a higher
aggregated value and technology base economy?
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Productive snapshot
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Changing towards base technological businesses
Alone vs As a set

• National Agreements
• International Alliances
• Joint ventures ( Start Ups)
• Higher possibilities to participate in
  investment funds

• Research and Development
• High Quality Human Capital
• Technology investment and transferring
• Mergers

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Knowledge based economy

• Regional development and sustainable economic
  activities
• Well paid wages and qualified work force
• Encouraging and consolidation of high aggregated
  value industrial clusters throughout the country

Source The United States Mexico Foundation for
Science
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Creating a incubation system to generate and
develop high Technology based businesses

• Global market players
• Technological innovation and high aggregated
  value enterprises
• Industrial Clusters and Strategic Sectors
• Regional industrial clusters
• Sectors in different regions
• Support to businesses throughout different cycle
  life stages

Source The United States Mexico Foundation for
Science
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High Aggregated ValueOpportunity Areas
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Opportunity areas in Mexico

• Micro-Electromechanical mechanisms
• Alternative Medicine, Food and Biotechnology
• Information based technologies Software and
  communications
• Telecommunications (Digital and wireless nets)
• E-commerce and e-business
• Robotics and cybernetics
• Security Equipments and devices
• Electronics
• Energy
• Electro-Optic devices and equipment
• Semiconductors
• Technologies applied to transport
• Medical Equipment
• New and intelligent materials
• Environmental Technology
• Nanotecnology

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Economic perspectives about MEMs