SMBs in Mexico are essential for job creation and for the country’s GDP, however, this is often not enough for them to really consolidate.

In the country, despite the fact that there seems to be a favorable outlook for the emergence of new small and medium-sized companies, starting may not be the most difficult thing, but maintaining it over time is one of the obstacles with which these companies struggle the most. , since a large number of businesses that are born in the country die before reaching 5 years.


Why do SMBs fail in Mexico?

The factors can be diverse, and the first thing to understand are those reasons that lead to the disappearance of SMBs. Among them can be considered:

  • Not knowing how to adapt or adapt to the new challenges that a globalized environment implies.
  • Lack of leadership and poor management and administration of SMBs.
  • Poor staff management.
  • Not doing adequate market research and lack of knowledge of these.
  • Lack of innovation in products or services.
  • Being in a highly competitive field.
  • Difficulties in obtaining sources of capital and financing for SMEs.
  • Having problems with partners.


5 tips for SMBs in Mexico to grow and prevail

Once the reasons for failure are clear, it is time for you to learn the ways in which you can consolidate your business over time.


1. Prioritize cash flow knowledge

Within the correct management and administration of SMBs, there must be a projection of cash flow, and knowing the current situation of this, to know the income, expenses, anticipate possible problems of a negative cash flow, and optimize the Use of resources.


2. Pay attention to the economic environment

This in order to locate situations and opportunities in your productive sector. This reduces the overall market risk.


3. Implement technological resources

The automation of processes and digitization is a growing trend, since only after the pandemic, this aspect rose by 80% among organizations, since it means making internal processes more efficient and operating with modernity.


4. Launch new business strategies

This point is related to the previous one, since you can implement strategies that involve technology, such as advertising campaigns on social networks to attract more audiences, the development of an e-commerce with online promotions, positioning of a web page, among others. You have to have vision.


5. Ask for financing

It is not necessary to be in the red to seek capital, and in order to achieve what has already been mentioned it is good to have economic resources, in this way the business impulse is easier and faster, always with good administration.


Are you looking for sources of financing your SMB?

As you have already seen, it is necessary to have sources of financing for SMBs in order to make the projects grow.

If companies had them, they could solve other reasons that appear in the list of reasons for failure, by innovating, training to have better technical knowledge and knowing their markets better.

It must be understood that the sources of capital and financing for SMBs are key to consolidating them over time.

For this reason, Pymes Capital offers online MCA financing, which make immediate financial resources available to businesses, which can be key to maintaining operations at times of lower flows, as well as to grow a business at the right time.