The General Assembly of the United Nations designated June 27 as the Day of Micro, Small and Medium Enterprises to raise awareness about the enormous contribution of MSMEs to the achievement of the United Nations Sustainable Development Goals (SDGs).
In Mexico, of the 4.9 million establishments in the private and parastatal sector, 99.8% are considered micro, small, and medium-sized enterprises (MiPymes). As a whole, this segment employs 27 million people, according to figures from the Inegi.
The relevance of MiPymes is not an exclusive situation in Mexico. According to the International Labor Organization (ILO), this segment in many countries represents more than 90% of companies, and in most of the nations that make up the Organization for Economic Cooperation and Development (OECD), they constitute more than 50% of the Gross Domestic Product.
Globally, SMEs generate approximately two thirds of jobs and in low-income countries they produce between 80% and 90%. By 2030, according to the United Nations, 600 million jobs will be needed to satisfy the global labor force, so the development of SMEs is a primary issue, since they will be the ones who provide, for the most part, these work spaces.
This June 27 we celebrate the International Day of Micro, Small and Medium Enterprises. After a turbulent period derived from the pandemic, how do SMEs arrive at this celebration?
Financing
The World Bank recognizes that access to finance is disproportionately difficult for smaller companies in least developed countries. 41% of small and medium-sized enterprises in these countries say that access to finance is a serious obstacle to their growth and development, compared to 30% in middle-income countries and just 15% in low-income countries. high rent.
For Cristian Bustos, CEO of Beeok, a Latin American startup that developed a software suite for business sustainability management, the challenges of being an SME include limited resources, competing with large companies, limited access to financing, adaptability to rapid changes, talent development to attract and retain key employees, and manage growth efficiently to maintain the profitability and sustainability of the business.
As CEO of Beeok, I value the role of SMEs and their importance in the business ecosystem and development of humanity. We are proud to be an SME committed to sustainability and to offer innovative solutions to other companies, regardless of their size. We will continue working to strengthen our impact and contribute to the sustainable development of organizations and society in general and have an impact on the quality of life of millions of people.
Cristian Bustos, CEO of Beeok
Grow with limited resources
A computer, a 3D printer and the idea of developing an innovative orthodontic service available to everyone, marked the beginning of Wizz Life, which with the help of technology: Artificial Intelligence, Machine Learning and 3D Printing provides a safe, effective dental alignment treatment. and at a lower cost.
“However, running a company like this involves great challenges, for example delivering a good service with limited resources and still being profitable,” says Javier Liberman, Founder and CPO of Wizz life.
For me it is, to a large extent, a loss of focus to be carrying out capital rounds, since the key has to do with managing expectations, looking at oneself and being calm with what is being done.
Javier Liberman, Founder and CPO of Wizz life.
“It is important to focus on low or medium-scale economic units and that these are making sense, having joint financial responsibility and having excellent satisfaction both from the patient and from the collaborators who work in the same company, then try to make these three compatible Things when you don’t have an unlimited capital pool is one of the biggest challenges we’ve ever had.”
digitization
The remote economy and the democratization of technology is impacting the acceleration of the digitization of MiPymes. In the case of Mexico, the adoption of technology in companies is increasingly common. DocuSign and The Economist study, Unlocking the potential of the remote economy points out that in recent years digitization has had a positive impact on organizations and, consequently, has generated more investment.
56.5% of the executives surveyed reported higher spending in areas such as cybersecurity, digital talent and use of the cloud, to name a few. Likewise, the report indicates that 28.2% of Mexican companies were more likely to significantly increase the use of artificial intelligence to automate their processes.
The constant advances have facilitated the democratization of digital solutions such as CRM, artificial intelligence or electronic signatures, which mainly benefit SMEs and are particularly important for the economic development of the country.
“Without a doubt, information technologies offer companies, regardless of their size, sector or line of business, the opportunity to be more competitive,” says Raymundo Guerrero, Country Manager of Pomelo Mexico, a Latin American financial technology company that develops Card solutions for fintechs and companies in the process of digital transformation to launch and scale financial services in Latin America, in an agile and secure way.
For Grapefruit, supporting these markets is crucial for the development of the country -mainly at present- since they are going through a transition phase in which technology will become their best ally.
Raymundo Guerrero, Country Manager of Grapefruit Mexico.
entrepreneurial resilience
One hundred dollars and the union of the ideas of three young people who began their friendship playing sports at the university, were the main elements for the creation of Calidad Cloud, process quality management software in the construction and real estate area that currently It is used by more than 4,000 projects corresponding to more than 220 companies in Latin America.
We have had many challenges, however, the real investment was not monetary but in time, desire and sacrifices.
Robinson Fuentes, CEO and founder of Calidad Cloud.
“In addition, the construction sector is quite traditional, we were very disruptive in incorporating mobile technologies in construction sites, in the years when acquiring a mobile phone or tablet was the privilege of a few, but we were convinced that this was the way to continue, there is still a long way to go, but we are satisfied with the result”, he concluded.
Entrepreneur, what do you think is missing in Mexico to empower SMEs?
Marisol Garcia Fuentes Editorial Director Emprende and Emprendedor.com. I am motivated by stories of tenacity and innovation.