The business ecosystem of Mexico has many points in favor, but the entrepreneurship education at school is not one of them. in the most recent National Entrepreneurial Context Index of the Global Entrepreneurship Monitor (GEM), it was found that only Togo has the worst score in entrepreneurship education.
In general, Mexico’s National Entrepreneurial Context Index (NECI) deteriorated significantly in 2022. In 2021, the total NECI score was 4.3, placing the country in 30th place among the economies studied by the GEM. Last year this score fell to 3.8, leaving Mexico in 44th place in the ranking.
Credit is expensive in Mexico
The GEM found that inflation has been rising in recent months in Mexico, reaching almost 9% in September 2022, its highest level in more than 20 years. This has made credit in the country expensive and a major obstacle to entrepreneurship.
It also found that while national initiatives to start new businesses have declined, some states such as Jalisco, Querétaro, Yucatán and Nuevo León have stood out in programs to improve local entrepreneurship and innovation ecosystems.
Entrepreneurial education at school, the great Achilles heel of Mexico
The GEM study found that 12 of the 13 points evaluated on the Mexican business ecosystem generally performed worse in 2022, highlighting entrepreneurship education in school, which went from an already low 2.7 to a dismal 1.7. To give us an idea, as we already mentioned, only Togo scored lower than Mexico in this category.
Overall country ratings were:
- Entrepreneurial Financing – 3.5
- Ease of Access to Entrepreneurial Financing – 4.0
- Government Policy: Support and Relevance – 2.3
- Government Policy: Taxes and Bureaucracy – 2.9
- Government Entrepreneurial Programs – 3.8
- Entrepreneurial Education at School – 1.7
- Entrepreneurial Education Outside of School – 5.3
- Research and Development Transfers – 2.8
- Commercial and Professional Infrastructure – 4.4
- Ease of Entry: Market Dynamics – 5.7
- Ease of Entry: Loads and Regulation – 3.3
- Physical Infrastructure – 5.8
- Social and cultural norms – 4.4
And what does this mean for the Mexican entrepreneur?
The GEM highlights that Mexico has had a post-pandemic recovery that, although not exceptional, is sufficient. On the other hand, he highlights that local markets are “buoyant” and focusing is a good strategy for entrepreneurs.
Not only that, the entrepreneurial spirit of the Mexican is high: almost half of adults
in Mexico you know someone who had recently started their own businessand more than two-thirds of adults considered themselves to have the skills and experience to do it themselves.
“The proportion of adults who see good opportunities to start a business locally in 2022 was more than one in two (56%), slightly below the 2019 level (63%),” the GEM noted in its annual report.
Four in five of the new entrepreneurs decide to start a business “to make a living because jobs are scarce”, although more than two in three also agreed with the motivation “to make a difference in the world”, and more of half with “continuing a family tradition”.
Finally, four out of five of the new entrepreneurs are expected to use more digital technology to sell their products in the next six months.
You can learn more details of the GEM annual report here.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.