Entrepreneurship is never easy and in Mexico it becomes almost a privilege, due to socioeconomic factors that can determine whether a person opens and is successful with their business; These factors range from their origin, studies and even their skin tone.
The Impact Hub organization interviewed more than a thousand entrepreneurs nationwide to determine What are the advantages (and disadvantages) that owners of micro, small and medium-sized enterprises (MSMEs) have experienced?whether formal or informal and with a life span of up to 5 years.
One of the most interesting findings of the study, done in association with Meta, is that only two out of every 100 entrepreneurs in Mexico earn more than 35,000 pesos per monthwhile 4 out of 10 earn less than 10 thousand, and the remaining four from 10 to 35 thousand pesos.
However, this income can come from more than one enterprise, since many people have two or more businesses, most of them are from a middle social class. Although more than 50% of entrepreneurs have only had one business, at least one in ten has launched 4 or more businesses. 54% of these ‘serial’ entrepreneurs are from the middle social classwhile 6 out of ten that have only one business are from low social class.
“Most of the serial entrepreneurs belong to a middle-class origin and have a master’s degree from a university in Mexico,” says the study (Dis)advantages of entrepreneurship in Mexico, by Impact Hub CMDX.
The report adds that people from the middle and upper social class tend to undertake more than people from the lower classand the latter encounter more obstacles to having a business.
The effort of the entrepreneur is, of course, one of the factors that can determine his success. However, this study highlights the external factors that also influence the fate of an enterprise and that are found in the physical and circumstantial characteristics of its founders.
“Proactive entrepreneurs, from a high social class of origin, who have a postgraduate degree and studies abroad, tend to make fewer mistakes in managing their businesses. Proactive entrepreneurs, that is, they actively seek opportunities to develop their businesses, tend to make 30% fewer business management mistakes than non-proactive ones”, adds Impact Hub.
The main disadvantages
The study reveals that the causes of discrimination that entrepreneurs most frequently perceive in Mexico are:
● Social class: 70%
● Age: 69%
● Educational level: 62%
● Gender: 56%
● Skin tone: 48%
Classism and racism are also present in entrepreneurship, causing opportunities not to be the same for everyone. The ecosystem has some features of exclusion, which are important to address as soon as possible to reduce the inequality gap”,
said Mario Romero, Managing Director of Impact Hub Mexico City.
Likewise, 45.8% of the people who undertake in Mexico are of light skin tone and 61.3% are of middle or high social class. In addition, 3 out of 10 entrepreneurs from a high social class mention that their condition of origin is an advantage when starting a business.
On the contrary, the least successful entrepreneurs are found in the south of the country; her skin tone belongs to medium tonethe educational level is basic education in a public institution, they do not have studies abroad and their only language is Spanish.
“These are very contrasting data with respect to the situation in the north of Mexico, where the entrepreneurs went to private schools, speak two or more languages and their studies are bachelor’s or master’s degrees. The inequality gap is considerableRomero added in a statement.
Financing also becomes a barrier for entrepreneurs disadvantaged by socioeconomic factors. 43.8% of founders who perceive that their skin tone affects them when applying to public programs are of dark skin tone. Even, half of the entrepreneurs with these characteristics have negative experiences when requesting financing from a public program.
Impact Hub clarifies that these results should not be seen as a condemnation for those who want to undertake, but to account for these inequalities and make the benefits of entrepreneurship accessible to more people.
Inclusive, the study shows the positive impact of entrepreneurship in the lives of its founders. 50% of the participants in the study with a low social class origin, obtained positive social mobility in one or even two levels, either to the middle class or upper class, in the same way as 20% of the entrepreneurs of social class media, managed to rise to upper social class.
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