During complex economic times, with increases in inflation and high interest rates, entrepreneurship can become a tool to better face adversity.
Recently the National Institute of Statistics and Geography (INEGI), through the National Occupation and Employment Survey (ENOE), reported that in the country, during the month of September, lhe unemployed population exceeded 2 million inhabitants, which implies an unemployment rate of 3.3% of the Economically Active Population (EAP). Comparatively with the same month last year, this population decreased by 423 thousand people and the unemployment rate was lower by 0.8 percentage points.
“In this context, entrepreneurship has positioned itself as an essential pillar for employment in the country. SMEs are and have been the largest generators of employment, with close to 72% nationwide. They are the engine of the economy, since, on the one hand, it offers a job opportunity to entrepreneurs who find in this activity a viable way of self-employment in the absence of jobs, but on the other hand, when their project begins to grow and mature the benefits expand and become employers”,
points out Juana Ramírez, president of the Board of Directors of the Association of Entrepreneurs of Mexico (ASEM).
Undertaking as professional development and in the face of unemployment
According to data from the Radiography of Entrepreneurship 2021prepared by ASEM, 26% of the entrepreneurs indicated that their motivation to undertake was because they needed to increase their level of income, 18% report that they did it due to lack of work and the need to generate income. However, the main reason for entrepreneurship (43%) was because the founders seek personal and professional growth.
“The pandemic, the massive layoffs that we have currently seen in many companies (including large technology ones) and economic challenges such as inflation, encourage people to seek alternatives to improve their income. However, the fact that the main motivation to undertake is due to personal and professional growth speaks of people for whom entrepreneurship was not a last resort, but a life choice because they saw the benefits it provides, that is, Mexico is a country with entrepreneurs by conviction and vocation and that impacts the ecosystem for good”,
explains the president of ASEM.
As a second reason for starting a business, ASEM respondents say that solving a problem (33%) or finding a profitable business opportunity (30%) is what has motivated them to create their own projects.
ASEM adds that 9% of the country’s entrepreneurs are people who live with some type of disability, be it motor, visual, hearing, have some neurodiversity or autism spectrum condition.
zero discrimination
According to information from the National Council to Prevent Discrimination (Conapred), in Mexico, only 40 out of 100 people with disabilities carry out any economic activity. The organism points out that this population is one of the most susceptible to discrimination, therefore, it is difficult for them to find a formal job despite their preparation and knowledge.
It also points out that men between the ages of 30 and 59 with some type of disability are the ones with the most access to work, with 73.5% of the participation; while the most disadvantaged group are women over 60 years of age, whose participation barely reaches 14.9%.
“Entrepreneurship in Mexico has made notable progress in terms of inclusion, there are still many gaps and challenges; However, the fact that 9% of the founders of companies are people with disabilities speaks of the fact that entrepreneurship is becoming a platform for this population to develop innovative projects and develop their potential”, adds Juana Ramírez.
The X-ray of Entrepreneurship in Mexico 2021, also gives an account of progress in terms of inclusion. Well, according to the report, on average, there are 50.6% of women employed in SMEs. However, in those run by women, the average rises to 72.7%, compared to those run by men, whose average is 37.4%.
“Women entrepreneurs are the largest employer of women in the country. It is exciting to see how we have taken action to close the gender gap and we need to continue driving growth in all companies, but especially those founded by women to achieve true parity. Currently, they invoice an average of 40% less than those founded by men”,
explains Emilia García-Arteaga Molinar, ASEM director of operations.
With a long-term view
A few years ago, informal employment was one of the few outlets available to people who were unable to enter the labor market. However, now entrepreneurs seek to grow and become formal, seeing their companies as a long-term project that even contributes to employing other companies in a similar situation.
“If this trend continues, the ecosystem will be strengthened and SMEs will continue to be benchmarks, both in job creation, innovation and economic development. It is not only about people who generate income on their own account; but of new proposals that have the potential to change people’s quality of life. That is the power of entrepreneurship”, concludes Juana Ramírez.