Digitizing business is essential. In Mexico there are more than 4 million small and medium-sized companies, which are an important part of the country’s economy, since they contribute about 52% of GDP and generate more than 70% of jobs. However, the business digitization process is still a challenge to overcome: 6 out of 10 SMEs in Mexico sell online.
Although the pandemic forced entrepreneurs to prioritize the digital channel, we are now in a stabilization process and it still represents a growth barrier. During the first semester of 2021, the SMEs declared that they had experienced a 100% growth in sales generated by their digital channel. Now, his goal is for this channel to continue increasing its contribution to total sales.
The digitization of business opens the doors to great opportunities; today more than ever, it is vital that more companies bet on new ways to impact their customers and accelerate their digital transformation to remain competitive. According to a study conducted by Microsoft, 83% of SMEs had to modify their business model and make a greater transition to the digital plane in all its verticals; being a clear indicator that digitization will dictate the course of companies in this sector, for which it is imperative to adapt to this modality to ensure its future.
Digitize businesses to sell more
According to AMVO figures, for 7 out of 10 SMEs selling through digital channels has allowed them to expand their consumer base and reach audiences that they considered out of their reach. Without a doubt, e-commerce has been a great driver of growth for this segment of companies.
On the other hand, Mexico is not only a fertile land for small and medium enterprises but, and for that same reason, also an economy full of opportunities for technology startups.
The ecosystem of technology companies in Mexico has experienced significant growth in recent years, managing to shape the country as a regional and global leader in innovation. According to Global Startup Ecosystem Index 2023, Mexico ranks 37th among the 100 countries with the most solid and established technological entrepreneurship ecosystems in the world. In the region, the country ranks third with the best ecosystem in Latin America, surpassed only by Brazil and Chile.
The great opportunity for Mexican startups
The start-ups that are flourishing in Mexico today have both a responsibility and an enormous opportunity to offer good digital products to small businesses. For businesses that are born analog, we must create solutions to be able to digitize easily. For those who are born digital, within the rise of electronic commerce, we have to help them to unfold to their full potential. Implementing digital processes and products requires time, effort and knowledge: small and medium-sized companies do not usually have these resources easily. Both for companies that are starting out and for those that are scaling up, going digital will be one of the key factors in marking their success or failure; technology companies will have to be allies in this transformation.
There are still solutions to be built and an opportunity to grow the adoption of those that already exist. Today, cash in circulation represents 9% of the national GDP. At Ualá Bis we work every day to empower small and medium-sized entrepreneurs: we make it easier for them to accept digital payments through a collection terminal or a remote payment link.
digital transformation for everyone
The true essence of digital transformation encompasses more than the adoption of new tools, we seek to make them catalysts for growthimproving the user experience and unlocking expansion opportunities.
As a sector, we have the great challenge of continuing to accompany entrepreneurs, who represent 99.8% of the economic establishments in the country, so that they reach that objective and can continue to strengthen themselves as job creators and engines of economic growth.