Between 2019 and 2023, 1.7 million micro businesses are born in Mexico

In 2019, Inegi counted 4.8 million establishments considered MSMEs throughout the country. But, as a result of the pandemic, millions of companies were born and died, with only a proportion of them surviving.

In 2021, for example, although 1.18 million companies were created, more than 1.5 million establishments closed that same year. The trend changed as the effects of the pandemic passed. Since in 2023 more companies were born than those that closed their doors.

Monthly birth and death rate

In terms of monthly rate, for every 10,000 establishments:

• Born: 61
• Died: 71

These figures are comparable to those of 2012, when for every 10,000 establishments, 68 were born and 67 died. This data underlines a relative stability in the creation and closure of MSMEs over the years.

The pandemic prompted many MSMEs to adopt new strategies to survive. Among these, the use of social networks was the action that grew the most, allowing companies to promote their products and services in an increasingly digitalized market.

Financial support during the covid-19 crisis was crucial for the survival of MSMEs. This support was mainly used to:

• Acquisition of inputs (73.06%)
• Payment of debts to suppliers (19.31%)
• Equipment, expansion or remodeling of the establishment (12.95%)

The MSMEs that emerged after May 2019 have shown growth in terms of employed personnel. On average, in 2020 they employed 1.99 people, a figure that increased to 2.85 in 2023.

In the case of SMEs (Small and Medium Enterprises), this figure went from 21.06 to 23.11 people.