- One of the most frequent aspirations of health professionals is to open their own medical practice, although not everyone takes the risk of taking the next step.
- Despite their innovative ideas and their desire to promote a project, their lack of experience, among other factors, are barriers that the youngest must overcome.
- Every August 12, International Youth Day is commemorated.
There are different ways to start in the labor market. The most common is to be part of an institution and some do so until the day of their retirement. While others prefer to get out of their comfort zone and start their own business, but do you know what the main financial challenges faced by young entrepreneurial doctors?
According to National Institute of Statistic and Geography (INEGI), in Mexico 24.6% of the population is made up of young people between 15 and 29 years old. Of these, 67.3% of men and 40.5% of women are part of the Economically Active Population (PEA).
“The growth of many SMEs is a reality; however, there is the counterpart that is the closure of a considerable number of businesses, often due to lack of knowledge about the financial management of businesses. Young entrepreneurs face great challenges to overcome adversities in the market, mainly due to the lack of accessible financing, but this is necessary to boost their business”, explains Bernardo Prum, Director of Creze.
With the above in mind and within the framework of the International Youth Day that is commemorated every August 12, we share with you some economic barriers that those interested in entrepreneurship must face.
1.- Access to financing
The main challenge for enterprising young doctors It consists of having sufficient resources that allow them to continue with their new business, especially during the first years of life. According to Radiography of Entrepreneurship in Mexico 202190% of SMEs support themselves with their own resources during the first three years of life, and 35% close their doors permanently due to lack of liquidity.
The results of Business Demographics Study (EDN 2021) of the INEGI specify that one in ten SMEs received some type of financing and used it mainly for:
● Acquisition of inputs (66%).
● Payment of debts to suppliers (20%).
● Rent payment (18.4%).
● Payment in cash or in kind for staff (9.2%).
● Equipment, expansion or remodeling of the establishment (7.5%).
● Other (18.8%).
2.- Knowledge of the market
Data of the Association of Entrepreneurs of Mexico (ASEM) reveal that 34% of failure in SMEs is related to lack of market knowledge. Therefore, a great challenge for young entrepreneurial doctors is to thoroughly research the target market before launching their business. There are details that we must not forget, such as the prices and the marketing that will be used to attract patients, the need that our product will solve.
3.- Effective contact network
The enterprising young doctors they may lack an effective network of contacts to help them establish business alliances, access affordable financing or even participate in training spaces for good financial management.
4.- Financial education
The financial education is key to running a business, no matter what type it is. It is one of the main challenges faced by all those interested in Open your own medical practice. They often lack the knowledge or information to manage their business finances.
5.- Profitability and the valley of death
The success of a health company does not happen overnight. Hours, days, months or even years of investment and sacrifice are required to achieve profitability. According to the Radiography of Entrepreneurship in Mexico 2021, 22% of the ventures in the country are not profitable. 39% took up to 3 years to be, 7% from 4 to 5 years, 4% more than 5 years and 28% less than a year.
How to recruit (and keep) young doctors in your practice?
Young doctors are betting on non-clinical jobs
Unpublished: 2 Mexicans appear on the list of the best doctors in the world